How to invest $100?

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By Nick

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Investing $100 can be overwhelming, but there are many options for beginners. Start by building an emergency fund or using micro-investing apps and robo-advisors. Consider investing in a stock index mutual fund or ETF, using fractional shares, or putting it in a 401(k) or IRA. Research and choose the best option for your financial goals and risk tolerance. Patience is key in investing, so don’t expect immediate results.

Previously in the article, we talked about how to invest $100. In this section, we will focus on the six best ways to invest $100 starting today. Investing can seem daunting, especially if you’re new to it. But with a little bit of research and some guidance, you can make your money work for you. Let’s take a look at the six best ways to invest $100.

1. Start an Emergency Fund

Before you start investing, it’s important to have a safety net in case of emergencies. An emergency fund is a savings account that you can dip into when unexpected expenses arise, like car repairs or medical bills. Having an emergency fund can prevent you from going into debt and can give you peace of mind. Start by putting $100 into a high-yield savings account that earns interest.

2. Use a Micro-Investing App or Robo-Advisor

Micro-investing apps and robo-advisors are great options for beginners who want to start investing but don’t have a lot of money to spare. These apps allow you to invest small amounts of money and typically charge low fees. Some popular micro-investing apps include Acorns, Stash, and Robinhood.

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3. Invest in a Stock Index Mutual Fund or Exchange-Traded Fund

If you’re looking for a more traditional investment option, consider investing in a stock index mutual fund or exchange-traded fund (ETF). These funds allow you to invest in a diversified portfolio of stocks and typically have low fees. Some popular options include the Vanguard Total Stock Market Index Fund and the SPDR S&P 500 ETF.

4. Use Fractional Shares to Buy Stocks

Fractional shares allow you to invest in stocks without having to buy a whole share. This can be a great option if you want to invest in a company that has a high stock price. Some popular fractional share investing apps include Stockpile and M1 Finance.

5. Put it in Your 401(k)

If you have a 401(k) through your employer, consider putting your $100 into it. A 401(k) is a retirement savings account that allows you to invest pre-tax dollars. Many employers also offer matching contributions, which can help your money grow even faster.

6. Open an IRA

If you don’t have a 401(k) through your employer, consider opening an individual retirement account (IRA). There are two types of IRAs: traditional and Roth. A traditional IRA allows you to invest pre-tax dollars, while a Roth IRA allows you to invest after-tax dollars. Both types of IRAs have their own unique benefits, so do your research to determine which one is right for you.

In conclusion, there are many ways to invest $100, even if you’re a beginner. Starting an emergency fund, using a micro-investing app or robo-advisor, investing in a stock index mutual fund or ETF, using fractional shares to buy stocks, putting it in your 401(k), or opening an IRA are all great options. Do your research and choose the option that best fits your financial goals and risk tolerance. Remember, investing is a long-term game, so be patient and stay the course.

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