Investing might sound like something only the wealthy can do, but that couldn’t be further from the truth. You don’t need thousands of dollars to become an investor. In fact, you can get started with just $100. Whether you’ve been putting off investing because it seems complicated or you’re unsure where to start, this guide will walk you through the first steps to build wealth—even if you’re working with a small amount of money.

By the end of this article, you’ll see how easy it is to take charge of your financial future, even with limited resources. Starting small can still lead to big results over time thanks to the power of consistency and compound interest. Here’s how to make the most of your $100.

1. Choose the Right Investment Platform

The first step to investing is finding a platform that works for you. These days, online investment platforms and apps make getting started simple and affordable. Many of them allow you to invest with little money, often waiving account minimums or offering fractional shares so you can buy pieces of stocks rather than whole ones.

Here are some popular options to consider:

  • Robo-advisors: Services like Betterment and Wealthfront use algorithms to build and manage a diversified portfolio for you. They’re beginner-friendly and guide you based on your financial goals.
  • Investment apps: Apps like Robinhood, Acorns, or Stash make investing accessible and easy to manage from your phone. Some even round up your spare change for automatic investments.
  • Brokerage accounts: If you prefer to manage your investments yourself, platforms like Vanguard, Charles Schwab, or Fidelity are excellent choices. They often have free or low-cost options for beginners.

When choosing a platform, pay attention to fees. Even small fees can eat into your investment gains over time. Look for platforms that minimize these costs and align with your needs.

2. Understand Your Investment Options

Once you’ve chosen a platform, it’s time to decide what to invest in. You don’t need to be an expert to start. The key is to familiarize yourself with the basic investment options available. Here are a few beginner-friendly choices:

Stocks

Stocks are shares in a company, meaning you’re buying a small piece of ownership. Investing in individual stocks lets you participate in a company’s growth, but it can also come with higher risk. If you’re new to investing, consider starting with well-established companies or diversifying your money across several different stocks.

Exchange-Traded Funds (ETFs)

ETFs are collections of stocks, bonds, or other assets bundled together. They trade on stock exchanges like individual stocks but offer diversification because they hold multiple investments in one fund. ETFs are a great option for beginners because they spread out risk and often have low fees.

Mutual Funds

Similar to ETFs, mutual funds pool money from many investors to buy a collection of assets. These are usually professionally managed, which provides peace of mind, but may come with slightly higher fees compared to ETFs.

Index Funds

Index funds are another top pick for beginners. These funds track the performance of a specific market index, like the S&P 500. You’re essentially investing in the entire market, which reduces risk and simplifies the decision-making process.

3. Aim for Diversification

One of the cardinal rules of investing is don’t put all your eggs in one basket. Diversification means spreading your money across different types of investments, so you’re not too reliant on just one company or industry. This reduces your risk and increases your chances of steady growth.

For example, instead of spending your $100 on a single stock, you could:

  • Invest in an ETF that includes hundreds of different companies
  • Divide your money between stocks and bonds to balance risk and stability

Even with a small starting amount, diversification is possible thanks to fractional shares and low-cost funds.

4. Harness the Power of Compound Interest

The earlier you start investing, the more time your money has to grow. This is where compound interest comes in. When you invest, your earnings generate their own earnings over time. For example, if your $100 grows by 8% annually, in ten years it will be worth over $215—even if you don’t add another penny.

Here’s the exciting part: once you make a habit of investing regularly, your contributions and compounded earnings will build on each other, creating exponential growth. This is why starting, even with a small amount, is so impactful.

5. Build Consistent Investment Habits

Investing $100 is a great start, but consistency is the secret to long-term success. After your initial investment, aim to add a little more each month. Even $25 or $50 can make a big difference over time. Use automation if possible to make contributions hassle-free. Many platforms allow automatic transfers from your bank account so you don’t have to think about it.

Treat investing as a habit, not a one-time event. Over the years, these small contributions can snowball into a significant nest egg.

6. Keep Learning and Stay Patient

Investing comes with its ups and downs, so it’s important to stay patient and avoid emotional decisions. Markets naturally fluctuate, but the long-term trend has historically been upward. Stay focused on your financial goals and remember that time is your greatest ally.

Additionally, take time to keep learning about investing. Many platforms offer free educational resources to help you understand your choices better. The more you know, the more confident you’ll feel in managing your investments.

Take the First Step Today

The hardest part of investing is often just getting started. The good news? You’ve already taken the first step by reading this guide. With $100, you can:

  • Open an account on an investment platform you trust
  • Start with low-risk, beginner-friendly options like ETFs or index funds
  • Build a foundation for long-term growth

No matter how small your starting amount, the key is to begin today. Every dollar you invest puts you closer to achieving your financial goals. Remember, even Warren Buffett started somewhere.

Take control of your financial future. Open an account, make your first investment, and watch your money start working for you! Your future self will thank you.