How to Start Investing with Just $100 in 2025

Investing doesn’t require a large sum of money to get started. In fact, you can begin building wealth with as little as $100. Thanks to advancements in technology and the rise of low-cost investment platforms, anyone can become an investor—regardless of their income level.

In this guide, we’ll walk you through how to start investing with just $100 in 2025, including the best options for beginners, tools to simplify the process, and strategies to maximize your returns over time.

Why Start Investing Now?

The earlier you start investing, the more time your money has to grow through the power of compound interest . Even small contributions can add up significantly over time. Here’s why starting now is crucial:

• Compound Interest : Your earnings generate additional earnings, creating exponential growth.
• Beat Inflation : Investing helps your money keep pace with or outgrow inflation, preserving its purchasing power.
• Build Long-Term Wealth : Whether it’s for retirement, a down payment on a house, or financial independence, investing is key to achieving long-term goals.

Step 1: Set Clear Investment Goals

Before you invest, it’s important to define your goals. Ask yourself:

• What are you saving for? (e.g., retirement, a vacation, a house)
• What’s your timeline? (short-term vs. long-term)
• What’s your risk tolerance? (Are you comfortable with market fluctuations?)

Setting clear goals will help you choose the right investment strategy and stay focused on your objectives.

Step 2: Choose Low-Cost Investment Options

With just $100, it’s essential to focus on low-cost, beginner-friendly investment options. Here are some of the best choices:

Exchange-Traded Funds (ETFs)

• ETFs allow you to invest in a diversified portfolio of stocks or bonds with minimal fees.
• Example: Vanguard S&P 500 ETF (VOO) or iShares Core S&P 500 ETF (IVV).

Fractional Shares

Many platforms now offer fractional shares, allowing you to buy a portion of expensive stocks like Apple or Tesla for as little as $1.

Robo-Advisors

Robo-advisors like Betterment or Wealthfront create and manage a diversified portfolio for you based on your goals and risk tolerance. They often have low minimum investments ($100 or less).

Apps for Micro-Investing

Apps like Acorns or Stash round up your everyday purchases and invest the spare change automatically. These are perfect for beginners with limited funds.

Step 3: Use Beginner-Friendly Investment Platforms

There are many platforms designed specifically for beginners. Here are some of the best options:

Robinhood

• Offers commission-free trading for stocks, ETFs, and cryptocurrencies.
• Perfect for those who want to start small and explore different asset classes.

Acorns

• Automatically invests your spare change into a diversified portfolio.
• Great for hands-off investors who want simplicity.

M1 Finance

• Allows you to build a custom portfolio of stocks and ETFs with no fees.
• Offers features like automated rebalancing and dividend reinvestment.

Public

A social investing app where you can learn from other investors and invest in fractional shares.

Step 4: Automate Your Investments

One of the easiest ways to stay consistent with investing is to automate it. Here’s how:

• Set Up Recurring Contributions : Schedule automatic transfers to your investment account each payday.
• Reinvest Dividends : Enable dividend reinvestment to maximize your returns.
• Stay Consistent : Even small, regular contributions can lead to significant growth over time.

Step 5: Avoid Common Beginner Mistakes

As a new investor, it’s easy to make mistakes that can cost you money. Here’s how to avoid them:

Don’t Try to Time the Market

Instead of trying to predict market movements, focus on long-term growth.

Avoid High Fees

Look for platforms and funds with low expense ratios to maximize your returns.

Stay Patient

Investing is a marathon, not a sprint. Avoid the temptation to sell during market downturns.

Start Building Wealth Today

You don’t need thousands of dollars to start investing. With just $100 and the right strategy, you can take the first step toward financial independence.

Ready to get started? Download our free Beginner’s Guide to Investing to learn more about the best tools and strategies for growing your wealth.