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You’re caught up on bills, your fridge is stocked, for the very first time in a while, you find yourself with an extra $100 leftover at the end of the month. It feels good to finally get forward, even if it’s just a small bit.
But now it is time to turn a small win into a big win.
Rather than spending what’s left on random things, you have decided you wish to use this $100 for something much more meaningful.
You would like to invest in it.
There are tons of strategies to invest small amounts of money, although not all opportunities are created equal.
11 Ways to Invest Your First $100
Below are some of the most effective ways to invest your initial $100.
This list is not likely to be a listing of hot stocks you need to purchase. That’s only a glorified form of gaming that you shouldn’t get caught up in.
Rather, these are wise and level-headed things to look at doing with your money.
1. Start investing with an app
If you are set on getting started with investing in the stock exchange, there are lots of cheap and even free options to receive your feet wet. Even though apps make it easy to receive your money in the market, there are nonetheless some fundamentals you will need to understand.
Only invest what you can afford to lose. The value of most investments go up and down every day, so don’t make the mistake of investing money that you need for paying your bills.
The daily fluctuations of the market can take an emotional toll on anyone who has money riding on it, and that explains why it’s important to listen to the noise. Over the long term, the stock exchange will go up. In the short term, it is anyone’s guess as to what it can perform.
Create a habit of frequently depositing and investing. Everything comes back into your habits. Your first $100 may not make a huge difference to your long term yields, but if you deposit $100 a month for a year, then you now have $1,200 +/- your investment performance. Most programs allow you to set up automatic recurring deposits; make the most of it.
2. Pay off debt
Paying off debt is an immediate method to capture”returns”, but it’s often the last thing people consider when deciding how they would like to invest.
Paying off is among the smartest moves you can make with your money. Here is how the math works out:
“The money I save on interest by not having debt is better than any yields I could get by investing that money in the stock exchange.”
I believed I would be a stock exchange genius. Until I was not. I should have paid off my credit cards every 30 days.
3. Purchase $100 worth of non-fiction books
Due to the fast-paced world that we now reside in, it seems like novels have obtained the backseat in most peoples’ lives. Attention spans are getting shorter and shorter and many individuals simply don’t have any interest in studying something longer than a Facebook status or a tweet (and even this blog post is extending it).
If you would like to break away from the majority, get a book.
Books offer you some of the maximum return on investment (ROI) from almost anything you can purchase. Exposure to new ideas can change your own life.
Take autobiographies written by entrepreneurs, for example:
A successful entrepreneur that has already built a thriving business, that has already taken their lumps on the way towards the very best, has a view that most individuals do not have. And if somebody like this decides to sit down and share their narrative and condense their understanding of one book that you can purchase for less than $20, you better take advantage of that opportunity.
Think about this: If you find even one thing in a publication that can enhance your life, chances are good that the price tag of this book becomes a drop in the bucket compared to the changes in your life a piece of knowledge or inspiration might bring.
“I did not feel like an idiot with defects, but a valuable team member she was prepared to invest in.”
This is a snippet of Kim Scott sharing a story in her book Radical Candor about an interaction she had with Sheryl Sandberg at Google (Sandberg is now the Chief Operating Officer at Facebook). The remainder of that story taught me how it’s fine to provide”harsh” opinions to someone as long as you also show them how you truly care about them and want to help them improve. As a company owner, this has helped me countless times.
“Listen up, crybabies: This is not your grandma’s house and I’m not likely to bark your biscuits and coddle you. A whole lot of your financial problems are due to one person: you. Instead of blaming the situation and corporate America for your fiscal situation, you need to concentrate on what you can change on your own. Just as the diet market has defeated us with too many choices, private finance is a confusing mess of overblown hype, myths, outright deception — and us, feeling guilty about not doing enough or not doing it correctly. If you’re not pleased with your financing and you are eager to take a close look in the mirror, then you will discover one inescapable truth: The problem, and the answer, is you.”
4. Invest $100 within an Internet class
If you can not bring yourself to sit for 30 minutes per day and then read a book, taking an online course is most likely the next best thing that you can do to help your growth.
Being taught skills that you want — from experts that have those skills — can have a rather high ROI, particularly when you consider how cheap online courses are compared to traditional college courses.
Unsure of where to begin? I recently signed up for a site called MasterClass, an up-and-coming online course platform has been chased by some as being the”Netflix of all self-education.” MasterClass has dozens of classes from world-famous experts in a variety of specialties. The video production quality of the courses is remarkable; you will not be bored in such courses.
I don’t plan on preventing hostages anytime soon, but there are lots of practical applications from the teachings from Chris’s course.
Other classes that created MasterClass a Fantastic investment:
- Business Leadership from Howard Shultz (former Starbucks CEO)
- Self Made Entrepreneurship by Sara Blakey (creator of Spanx)
- Business Strategy and Direction by Bob Iger (Disney CEO)
- The Art of Magic by Penn and Teller
5. Open an IRA
Open an IRAAssuming a starting balance of $100 and annual contributions of $100, making a 7.0% annual return over 30 decades.
Most young people do not want to think about the day if they are not”young” anymore, but saving for retirement is an important part of life. The biggest mistake that most men and women make when it comes to saving for retirement is not starting earlier. It’s normal to want to wait patiently until you’re”off” until you start putting money away for retirement, but it’s up to you to fight that impulse to wait and instead just start saving now.
Individual Retirement Accounts, or IRAs, come with special tax benefits that are thought to motivate you to regularly contribute. Opening an IRA is simple, and many brokerages allow new account holders to begin with much less than $100.
6. Develop Your emergency cash reserves
Source: Federal Reserve’s 2018 Survey of Household Economics and Decision Making
If you are among those 74 percent of Americans living paycheck to paycheck, constructing an emergency stockpile of money should be a top priority. Unexpected things happen all of the time, and also a small hiccup can throw your budget to a nosedive if you don’t have an emergency fund.
Having an emergency fund with 3-6 months of living expenses in it is a fantastic goal to have, but do not let that prevent you from starting small.
If something does come up that you didn’t expect, having an extra cash buffer is far better than relying on credit cards and carrying a balance.
Emergency funds help make some scenarios less stressful. Some examples:
7. Start a business
A common myth that pervades our mainstream societal conversation is that you need a good deal of money to start a small business. Now, more than ever, that’s simply not true.
The cost of entry has been lowered immensely because of the world wide web. There is nothing stopping somebody from purchasing a domain name and hosting today for less than $10. DollarSprout.com — the website you are on right now — is a company which was started on a shoestring budget. What started as a (very) small company has become a workable long-term company that employs a couple of people.
The one disadvantage to the price of the entrance is lower today than ever before is the level of rivalry is at an all-time high. Anyone can start, which means you’re competing with a lot of individuals. Do not let this dissuade you. Let it inspire you.
8. Have some fun with flipping used stuff
Purchasing something for inexpensive (or maybe getting it for free) and then flipping it for again is not only a thrill, but it is a great way to acquire experience with negotiating, business, and earnings.
If you have an additional $100 laying around and you want an actual entrepreneurial challenge, hit up the local thrift shop or find a few garage sales in your town. If you find a good deal on something which you know is underpriced, jump onto it.
For individuals considering flipping, it’s important to have an end goal in mind. What do you expect to accomplish by flipping? Going in without a clear goal is probably not the best use of your time since you are starting from scratch every time you go out looking for bargains. You aren’t actually”building” anything you’ve equity in — it is more just a hobby.
Possible goals for flipping:
Turn $100 to $1,000 and use profits to Begin a new business
Total 10 successful flips
Experiment with different negotiation Methods and get comfy with making a bargain
9. Take someone you look up to out to lunch
Success in life often comes down to the connections we make and the relationships we build. Relationships don’t happen by accident — you get what you put in.
You don’t need to attempt to”get anything” from the lunch. This is all about creating a relationship. Should you treat people well, good things often happen because of it.
10. Invest in your marriage or relationship
Life is too short to just concentrate on how much money you may create from every transaction. On occasion, the returns we get from our investments have nothing to do with money.
You should not do so every time, but if you have some extra money on hand, think about using it to do something out of the normal to your spouse. It might be a date night, a daytime road trip, getting them that publication they have been eyeing, or anything else. The most important thing is to make certain it’s something significant to them (rather than just you!).
Do not overlook your long term financial objectives, but also don’t beat yourself up to more than living just a little bit. Money is a tool meant to make our lives better, not pressure us out.
11. Join a fitness center
Rising healthcare costs are a really real thing facing lots of Americans, and sadly they aren’t displaying signs of slowing down anytime soon. Many health problems are outside our control, but the 1 factor we can control is how well we take care of our bodies.
Some of the most prevalent health issues facing our inhabitants are self-induced. Cardiovascular disease, Type 2 diabetes, stroke, and many other issues are believed to be common in sedentary individuals than in those who often exercise.
In fact, according to a recent study from The Lancet, “physical inactivity is responsible for a significant financial burden.” The research estimates that the total financial cost of this physician visits, lost time from work, insurance claims, and other prices is nearly $28 billion in the United States annually.
Normally, those who exercise regularly incur fewer healthcare expenses.
Invest in your health and your wallet by joining a fitness center, in case you haven’t already. It’s worth every penny.