Learn how to start investing with $100 and grow it fast.
How do you start investing when you don’t have much to invest?
That's probably the question I get most often on the blog. Whether it's $1,000 or $100, it just doesn't seem to go very far in today's stock market.
You can't buy a single share of Amazon for $1,000 and you can't touch many blue-chip stocks for $100.
I’m going to reveal five investments you can start with $100 and how to get started in 2020. These are non-traditional investments that anyone can use to make double- and triple-digit returns to turn that hundred into more than you can imagine.
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How to Start Investing when You Don't Have the Money
Now we’ve done a lot of investing videos here on the channel. In fact, I did one on starting investing with $1,000 a few weeks ago but this one is going to be different.
I hear from a lot of people in the community that they want to get started investing but just can’t find many options on what they can invest. They want to invest in stocks but you can’t buy a $1,300 share of Amazon with a hundred bucks.
What we’re talking about here is how to get the most on your money, some strategies outside of traditional investments to really get that bang for your Benjamin.
I’ll show you how to get started on each of these five investments for $100, how much you can expect to make and talk about some of the risks in each.
After these five investments, I’ve got a bonus investment you can make that will give you a guaranteed return and it’s one that a lot of people overlook so make sure you stick around for that.
Investing $100 in a Resell Business
Our first $100 investment idea is a fun one, flea market flipping.
Like a lot of the investments we’ll look at, this one is a little creative. You’re not going to be able to just put down $100 and expect it to double or triple in stocks that first year but that’s exactly what you can expect in flea market flipping.
By getting something from local consignment or flea markets and then selling it to a national market on eBay, you increase the demand and price you can get for something.
In fact, I interviewed two flea market flippers earlier in the year that said they won’t even touch a flip unless they can get a 25% return on it in less than a month. If you take just that minimum return each month and keep reinvesting your money, that $100 can grow to nearly $1,200 by the end of the year.
Now a few tips are going to make you successful with flea market flipping.
First is that it helps to focus on one or a few types of items. You might try flipping sports memorabilia or maybe porcelain figurines or kitchen items. This way, you start to get a feel for how much something is really worth and the quick return you can make reselling it.
You also want to use your smartphone to double-check how much you can resell the item. You can check the price and quality of similar items on eBay as well as what other sellers are offering like free shipping or accessories.
Finally, for flea market flipping, is to open your search to as many sources as possible . This means looking in the paper, going to consignment shops and auctions, anywhere you can get a deal and find more things to flip.
Investing $100 on RobinHood
Our second $100 investment is going to be to use commission-free investing apps like Robinhood. The app is similar to a lot of investing sites but has one very important difference for someone getting started on less.
Robinhood is commission-free meaning you pay nothing each time you buy a stock. Even versus the cheapest online investing site, that’s going to save you $5 a trade which would be 5% of your money on one hundred dollars.
Now there are a couple of drawbacks to Robinhood that most people don’t talk about here on YouTube. It’s because they’re trying to get you to click through so they get a referral commission.
There are no retirement account options on Robinhood so you’ll need at least one other website for your IRA or Roth. These are amazing ways to save money and will be the best return you ever make so don’t neglect these special investing accounts.
Another thing you don’t hear about Robinhood is how it makes money. Listen, those commission-free trades don’t come from nowhere.
Robinhood makes money by selling your trading information and lending out your shares to short-sellers. It’s a pretty common practice among brokers but most people don’t hear about it. I don’t think it’s a deal-breaker, it’s still a great way to start investing on $100 but you should know where they make their money.
I've found another investing account that provides the commission-free benefits of Robinhood but without the drawbacks. M1 Finance is a completely-free investing platform and automatically invests your money according to the stocks you pick.
There is a $100 minimum for taxable accounts or $500 for retirement accounts but saving those fees is a big one, especially when you're starting with $100 in an account.
Use this link to join and you'll get a $10 bonus – join M1 Finance now
Invest $100 in Low-Cost ETFs and Stocks
Another route you can take to invest your money, and this is our third idea, is to invest only in exchange traded funds or ETFs. These are like the traditional mutual funds but cost much less and still give you that instant diversification across hundreds or even thousands of stocks.
There are a couple reasons why I like ETFs for investing. One is that instant diversification because no single stock is going to drag your portfolio down. Even if a company’s stock crashes, it might be less than one percent of your ETF so you won’t see the overall price suffer.
For this idea of investing $100 though, ETFs also mean you don’t need thousands to get those shares of Amazon or Warren Buffett’s company Berkshire Hathaway. For any stock you want to buy, you can find a fund that holds it and then just buy shares of the fund for a fraction of the cost.
Now the return on both that Robinhood and ETF investing isn’t going to be like what you’ll get flea market flipping or with some other non-traditional investments. You’ll get the market return between 8% to 10% a year but most people don’t understand, that’s all you need!
Everyone wants to chase stocks and reach for those double-digit returns but $100 invested monthly starting when you’re 30 grows to over $280,000 by the time you reach 65 on a modest 9% annual return.
My Favorite ETF Investments to Start Investing
If you’re looking for a place to start, I’ll go over a few of the ETFs I hold and that I think can be solid investments for 2020.
First here is the Vanguard Real Estate ETF, ticker VNQ. This is a great way to get real estate in your portfolio because the fund invests in hundreds of real estate investment trusts that hold commercial property. The fund has been hit this year on rising interest rates but pays a solid 4.4% dividend and the expense ratio is one of the lowest you’ll find.
Another fund I own is the Consumer Staples Select Sector ETF or XLP. This fund holds shares in companies like Procter & Gamble, Coca-Cola and Walmart, all the things that people are going to buy even if a recession hits 2020 . That means the shares won’t fall as hard as other stocks and you still get that nice 2.7% dividend.
This last fund is one you might not have heard of, the Alerian MLP or ticker AMLP. This fund holds master limited partnerships which are special companies that hold energy pipelines and storage facilities. These companies make their money on the transaction fee moving oil or natural gas through pipelines so it’s not necessarily all about oil prices. The fund pays an amazing 8.4% dividend and bypasses the annoying K-1 tax form you get investing directly in MLPs.
Invest $100 in Books and Courses
Our fourth investment you can make gets back to more non-traditional investing and that’s buying books or courses.
Now I know a lot of you are rolling your eyes right now but let’s be honest, you’re not going to get much in stocks or other investments for $100. Compare that with what you can get on Amazon Kindle or courses on Udemy.
The idea here isn’t to spend that hundred on smut novels and video courses for solving a rubiks cube . You can get ebooks for building a business for less than $10 and video courses on Udemy for less than $20 each.
That means all the information you need to get your side business started on that $100 and the potential to create something that’s going to make you rich someday.
Don’t overlook the opportunity to make your money go farther by getting that knowledge that’s going to make it multiply.
How to Invest in Your Kids
Our fifth $100 investment before we get to the bonus investment that will guarantee a double-digit return is going to be a play off the last one of buying books and courses. Your first reaction might be to buy these books and courses for you but you can also find some for your kids to spark that entrepreneurial spirit.
Gotta be honest here, my kids are like my walking, slobbering little lottery tickets right?
I’m getting them all the opportunities they can get through education and information so they grow up to be CEOs someday.
And here it doesn’t even have to be a book or a course on making money or building a business or anything.
Get them a biography that’s going to instill in them the values that will make them successful or something that’s going to open their mind to a bigger world.
Guaranteed Return Investing
So those are our five $100 investments you can make in 2020 but our bonus one is going to guarantee you a double-digit return and it’s one a lot of people don’t think about and this is just to pay off those high-interest credit cards.
Look, I know it’s not as sexy or as fun as investing in the next hot stock but there’s no better way to guarantee you get an 18% return or higher than making sure you pay off your card balance each month.
This is different than saying pay off your debts before you start investing. We’re talking about keeping those debts paid off so maybe if you go on vacation and run up your credit cards. Pay those suckers off before getting back on your investments.
Starting with just $100 to invest means you need to get creative and make the tough decisions. You can't expect to turn your $100 into six-figures overnight but you can turn it into long-term wealth if you put in the time with some of these investing ideas. I love talking investing and making more money so be sure to join the Let's Talk Money community on YouTube. It' free and you'll never miss an episode.