If you’re interested in starting to invest, you might worry that you don’t have enough money to do so. In fact, even with a small amount of money, you can start investing in your future easily. If you’re trying to find out how to invest $100, here are four starting points so you can build your investment portfolio for the future.

1. Invest in Fractional Shares

Fractional shares are small fractions of a larger share, which allow you to start investing without having to buy a full share of a specific company. For example, if a company’s shares are selling at $100, you could buy one share for $100, or 100 people could buy 1% of a share for $1 each. Look into companies that allow you to buy fractional shares to spread out your $100 into multiple investments.

2. Put Your Money in a High-Yield Savings Account

A high-yield savings account is one of the safest ways to invest money. While investing can help you earn more money, it can also end up costing you money, depending on what you invest in and how the market ends up doing. One of the best ways to gain money is simply to put your money in a high-yield savings account. You’re not gambling with your money and are instead going to receive a percentage no matter what you do.

3. Pay Off Your Debt

While the idea of investing with $100 can be interesting, it may be better to put those $100 toward paying off existing debt, especially if you have a high-interest debt like credit card debt. Think about it: would you rather have $100 earning 1% of interest, or would you rather pay $100 less on a debt that’s accruing 16% of interest? Sometimes, putting that money directly toward debt can actually be the best investment, even if it doesn’t feel like it’s much of an investment at all.

4. Put Your Money Toward Retirement

Retirement accounts can be a great option for people who want to start saving for their retirement, especially if they’re younger. You can put a certain amount of money away tax-free every year, and as long as you don’t access it until you’re over a certain age, you can then withdraw the money tax-free as well. It can essentially give you a significant amount of money post-retirement that you won’t have to pay taxes on at any point.


Even if you only have $100, that small amount of money can be a great starting point for people who are interested in investing. Whether you end up paying off some amount of debt, investing in fractional shares, or even just putting your money into a retirement account or savings account, these are all effective ways to start investing. Plus, if you’re able to come up with an extra hundred dollars every month, you can end up compounding that investment with more investment options down the line.

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