How to Invest $100: 40 New Ways You Don’t Want to Miss

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1. Fractional Shares in the Stock Market

Fractional share investing is a great way to invest small amounts. 

Most companies let you buy fractional shares. Fractional shares are a portion of the stock. 

The more money invested over time into the same company, the cheaper each share will be because there are now more buyers than sellers in that stock market.

If you invest $100 into a company trading at $500 per share, your investment will be 0.20 of one share. 

If you were to add another $400 in the future, you would have $500 invested, and you will own one share of the company. 

Fractional shares can help you diversify your investment portfolio as most cannot afford to invest thousands of dollars into one particular stock. 

2. Invest in Cryptocurrency

One of the easiest ways to invest $100 is in cryptocurrency. 

Cryptocurrency has exploded over the last few years, and it's easy to see why people are so excited about it. More money is being poured into cryptocurrency every day. 

Bitcoin (BTC) is the Granddaddy of them all, and there are other cryptocurrencies like Ethereum (ETH) and Ripple (XRP). 

These currencies have been on a wild ride lately, with huge swings up and down. Most cryptocurrencies have grown exponentially.

If you had invested even just $100 into each one at their lowest point during this period, your investment would be worth more than double that today if sold.

Keep in mind that these investments can go either way, though, depending on the current market sentiment.  

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Before investing in cryptocurrency, make sure you know how much risk you’re willing to absorb and your specific financial goals. 

With a speculative asset like crypto, you may lose money. 

I like Cryptocurrency so much because I have been investing my money away from fiat currencies. 

The more I save money, the faster I convert that into something that any government cannot manipulate. 

Keep reading: What Is Cryptocurrency? 8 Common Questions Answered

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3. Enroll in an Online Course

There are many online courses that you can take to learn new skills or improve on existing ones. They can be one of the great ways to invest $100.

Financial education is the most critical subject you did not learn in school. There are better teachers on the internet than in any college classroom. 

There are also many more subjects that may interest you. The list goes on from business management, computer programming languages, yoga & meditation techniques.

The best part about most online education resources is that they're always adding more content as time progresses. 

If you don't feel comfortable doing this yourself, consider enrolling in a course with a friend or family member. You’ll learn a lot more if you discuss it with someone. 

It's more fun and will also help keep you motivated.

4. Invest in a Roth IRA

A Roth IRA is a retirement savings account that allows you to invest each month. The best part about this type of investment is that your money grows tax-free over time. 

That means if the market goes up, then you're getting all of those profits for yourself instead of handing them straight over to Uncle Sam.

One thing also worth mentioning is how flexible these investments are. You can liquidate entirely use it as an emergency fund. 

You’ll need to pay a fee if you are not at the current retirement age. 

Here are a few cons with a Roth IRA:

You can be penalized for withdrawing the money before retirement age

Who decides when you are going to retire? Who decides what you do with your money? You can be penalized for taking the money out for an unqualified withdrawal with a Roth IRA

So if you find a deal on a rental property and want to withdraw $40,000 for the down payment, you’ll most likely have to pay income taxes and a 10% penalty to the taxman. 

How about that for my retirement plan. You don’t have complete control over this plan. Keep that in mind when considering a Roth IRA. 

The government May tax all IRA withdrawals in the future

As of early 2022, the US national debt is over $230,000 per taxpayer. The federal government will 100% certainly need to collect extra money and increase taxes over the coming years. 

They may choose that Roth IRAs are now taxable accounts and require taxes paid on regular withdrawals similar to a traditional IRA and other brokerage accounts. A traditional IRA may be a better option. 

I don’t have any evidence this will happen. I ask, at what point will the taxes decrease or stop

Answer: Never.

5. Worthy Bonds

Many people might not consider investing in bonds to make money, but it's a brilliant idea. 

Bonds are essentially loans that allow you to lend your money out to an institution like the United States government or even large corporations for a fixed interest rate over time (usually around $100).

The U.S. currently offers bonds with terms ranging from one month up to thirty years depending on what you're looking for, so there is something here worth considering. 

6. Open a High-Yield Savings Account to Save Money

If you are interested in putting your) money somewhere safe with guaranteed returns, then opening one of many high-yield savings accounts (HYSA) is something worth considering. 

Your money goes directly into an FDIC-insured bank, where it can safely grow for years at a time without the threat of losing your principal. 

Most banks do not have minimum deposit requirements and offer better interest rates than the national average APY. Always check the interest rate of an account. 

7. Start an Emergency Fund

Having some emergency funds on hand is extremely important, no matter how secure your job is. Keep this in a bank account like the HYSA mentioned above. 

Start with shooting for $1000, and then, in the end, have 3-6 months of your monthly expenses stored away.

Remember, only use your emergency fund for emergencies. 

The best place to put your emergency fund is in a high yield savings account. 

8. Save for Your Child's Education

It's important to think about your kid’s future. Saving money for your child or grandchild's education is a great idea. 

There are plenty of options here that enable parents and grandparents alike to save up for college in tax-advantaged accounts like a 529 plan

9. Open a Brokerage Account

If you're serious about investing money, then opening a brokerage account may be for you. 

You will have access to trading platforms and information used by major banks and financial institutions. 

Remember to only invest in the stock market when you have a thorough understanding. Most start with a simple exchange-traded fund (ETF) and buy individual stocks. 

10. Use a Robo-Advisor

If you're not familiar with the term, Robo-advisors are online platforms that let users build their portfolios using different types of securities. 

It's essentially an automated system that considers your risk tolerance when investing. 

Learning about how the stock market works can be daunting. 

Often, a robot can make a better investment because robots do not have emotions. 

What is a robo-advisor?

A Robo-advisor platform gives users access to professionally managed portfolios using different investment vehicles.

Robo-Advisor is a type of platform that manages your money for you: It allocates funds between stocks, bonds, and cash investments based on risk tolerance.

11. Consolidate and Pay Off Debt

This option might not be as exciting as investing your money, but it's one of the most effective ways to use $100.

Use the $100 if you have any credit card debt accumulating interest.

12. Start a Retirement Account

Starting a retirement account is an excellent idea, even if you're young. 

You may consider a Roth IRA in addition to your employer’s 401(k).

13. Start a Blog

If you enjoy writing, this is an excellent way to use $100. Starting a blog can be done in about 1 hour, even if you have no web design experience. 

You can start a blog for $2.95 a month and begin writing today. 

When I first started blogging, I used Bluehost and was delighted with them. 

Related reading: How to Start A Successful Blog in 1 Hour

14. Certificate of Deposit (CD)

A CD is one of the safest investments available. 

CDs are low-risk, yet you will earn nominal interest compared to other options and sometimes even riskier when inflation is high. 

15. Government Bond Funds

These are similar to CDs, and they offer more of a return since they invest money in less stable financial markets. These are also known as treasury bonds.

16. ETFS

ETFs are considered low-risk and can give you a higher return. You can trade without having to pay any commission or fees with Webull

17. Index Funds

Index Funds are similar to ETFs because they're also considered low-risk and offer high returns. 

For some, investing in index funds is the only way to go. 

18. Municipal Bonds

These are very similar to CDs, but they typically have a longer-term. Municipal bonds are a good investment because they're tax-free.

19. Dividend-Paying Stocks

Dividend-paying stocks are great because they offer regular returns through a quarterly dividend paid directly to you. 

20. Flip Items for Profit

People who know how to flip items for profit should consider this option since it's the quickest way to get money and doesn't require much more than $100.

Facebook marketplace can be a treasure trove of items you can buy and resell for a profit. 

21. Penny Stocks

Penny stocks are considered riskier than many other investment options, but it's also one of the quickest ways to make money. 

Novice investors should not invest in penny stocks. 

22. Growth Stocks

Growth stocks are an excellent option for people who want to invest in companies with high potential growth. 

23. Peer-To-Peer Lending (p2p)

P2P lending is another risky option, but it can be a great way to make money, and some people have found success with this strategy. 

Peer-to-peer lending requires you to invest your money in different borrowers who will pay you back over time with interest payments. 

24. Dividend Reinvestment Plans (Drips)

Dividends reinvested plans (DRIPs) offer regular dividends and more potential capital gains than other investment strategies. 

25. Treasury Inflation-Protected Securities (Tips)

The government offers TIPS and can be an excellent way to invest money to keep up with inflation. 

The US government also guarantees it. Take that for what you will. 

26. Real Estate Investment Trusts (Reits)

Investing in a REIT is another low-risk option that can offer high returns. 

27. 401(K)

People who have access to a 401(k) through their employer should consider investing there. 

28. High-Yield Corporate Bond ETFS

High-yield corporate bond ETFs are an excellent option for people who want to invest in the market but don't have time to monitor their investments actively. 

These can be beneficial because they offer high returns and usually pay monthly or quarterly dividends.

29. Start Your Own Business

Starting your own business is an excellent way to make money fast if you know what you're doing. 

This investment will require a lot of work at first, yet this can be your way out of the rat race. 

30. Treasury Notes (T-Notes)

Treasury notes are another low-risk investment that can be a great way to make money. 

T-Notes are perfect for those who just want something safe and stable.

31. Mutual Funds

Experienced investors manage mutual funds. At times index funds perform better than many a mutual fund.

32. Precious Metals

Gold and silver can be a great hedge against inflation. 

Every fiat currency created by a government has failed at some point. The US dollar is not unique and will fail at some point. 

Keep reading: 9 Reasons Why You Should Invest In Gold

33. Small-Cap Stocks

Small-cap stocks have the potential of being extremely lucrative over time. They have historically outperformed large-cap stocks throughout time. 

34. Treasury Bills

Treasury bills are another guaranteed investment that can offer returns if you wait long enough. 

They're low risk and completely liquid (meaning, they can be easily bought/sold without affecting their price), which is why many people like them as a haven for their money.

35. Investment Apps

Investment apps might seem like an odd option, but many apps out there will invest your money for you. 

Make sure you’re investing in a reputable app. 

36. Savings Bonds

Savings bonds are another safe choice for your money, and they're recommended more to people who want a guaranteed return rather than high returns. 

These can be highly beneficial because they offer some of the highest yields on short-term investments out there.

37. Start a Side Hustle

This investment strategy is for individuals looking to make money fast without much risk. 

It's one of the best options out there because you can see your profits go up pretty quickly if things work well.

Keep reading: 50 Best Side Hustles to Make More Money in 2022

38. Invest in the S&P 500

Investing in the S&P 500 is a popular choice among many investors because it's highly liquid. 

The S&P 500 has had great returns over the past several decades. 

39. Christmas Club Account

Christmas club is excellent for people who want to save up their money without being completely inaccessible.

40. Your Financial Education

Before you can feel confident with investing any money, you must become educated. 

Several great personal finance books will help you become competent with managing your money. 

Keep reading: 3 Best Personal Finance Books For 20-Somethings 

Ready to Invest?

$100 doesn't seem like a lot of money at first, yet you can make a lot more if you invest wisely. 

Before you lose money, make sure to become educated and learn about ways to invest. 

Here’s to growing that $100! 

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As a certified credit counselor and syndicated writer at MaxMyMoney, Max has coached over 250 Millennials to help take the stress out of money. When Max is not coaching, you'll find him reading financial books, indoor cycling, or visiting local pawn shops looking for swiss-made watches.