5 Ways to Start Investing with $100

How do I invest $100 and get reasonable profits? What are the risk-free options available?

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Investing your money correlates to streamlining your financial stability and living a luxurious life. Whether real estate, bonds, stocks, or cryptocurrencies, the goal of investing your money is to build wealth through passive income. 

Because investing is crucial to achieving your financial goals, you must thoroughly plan and prepare yourself. For example, instead of taking the risk of investing $1,000, you can invest $100 to make $1,000. 

The question is, “How do you start investing with $100? Today’s article will discuss the five most practical, reliable, and risk-free methods. So, without further ado, let us get started. 

1. Buy Savings Bonds

Savings bonds are a reliable and safe investment option for people who want to mitigate risks and achieve financial goals. You can buy a savings bond at face value and let it mature. Once matured, you can earn interest on the savings bond. 

Bonds can crash anytime, but if you follow a good strategy and play by the book, you can reduce risks and earn more. So, this is an excellent way to start investing $100. 

In addition, the longer you wait, the more valuable your savings bond will become, allowing you to earn more money. Some bonds mature quickly and double in value. 

For example, “Series I Savings Bonds” are the best because they adjust earnings with inflation. These bonds come in paper and electronic form, and when used properly, such as paying for education, you can avoid federal taxation. 

2. Invest in Cryptocurrency

Although cryptocurrency is volatile, this industry is gaining popularity among investors. You can invest $100 in cryptocurrency through various platforms. All you need to do is to open an account and buy your favorite cryptocurrency. 

Depending on your investment goals, you can purchase, hold, trade, or sell a cryptocurrency, such as bitcoin; however, you must focus on the high-risk tolerance when investing in crypto. It requires time and patience, meaning crypto investment is not suitable for people looking to withdraw money/profit immediately. 

3. Purchase Treasury Bonds 

Purchasing treasury bonds is another reliable, efficient, and low-risk opportunity for beginners looking to start investing with $100. The reason is that treasury bonds have a fixed interest rate. 

$100 is the minimum investment for a treasury bond, and you can purchase it directly via “Treasury Direct” or from a broker. Besides, the treasury bond has a long tenure and carries a periodic interest payment. 

4. Consider an Individual Retirement Account

An individual retirement account (IRA) is a reliable investment opportunity for people to start investing with $100. Instead of focusing on the 401(k), the IRA is an excellent option because it will turn your $100 into a hefty sum over time, encouraging you to invest more and generate reasonable profits. 

5. Earn With Dividend Stocks

You can invest $100 with a company that performs well on the market. The company will pay you dividends whenever it generates higher revenues or profits. So, you can reinvest the dividends to purchase more stocks. 

Over time, you can increase your portfolio without affecting your personal finances or depleting your bank account. The best thing about this approach is that you can buy these stocks without trading fees with reputable brokers like M1 Finance and Ally Invest. Dividend stocks are ideal for beginners, generate a stable and passive income stream, and fund your investments.