How to Begin Investing with $100 in 2025 (Yes, It's Completely Possible)
Let's get one thing clear immediately — you don't have to be wealthy to begin investing. Seriously. In case you have just $100 in your bank account and a touch of curiosity, then 2025 is actually an ideal time to start.
I get it, $100 may not sound like much, particularly when you look around and see YouTubers bragging about their six-figure portfolios and going on about "diversifying across asset classes." Don't be intimidated. Everyone has to begin somewhere, and $100 can go further than you know if you play your cards right.
In this post, I'm going to take real, actionable steps you can take to begin investing with only $100. No confusing finance mumbo-jumbo. No flaky hype. Just straightforward ideas that work.
First — Change Your Mindset ????
First, you have to get one thing: investing isn't about timing the market, it's about time in the market. Beginning with $100 is more of a habit you're creating and less about the figure. It's your initial step to learning about money, how it multiplies, and how you can be the boss of your future wealth. Don't be concerned that $100 seems insignificant. Your objective is to begin, then be consistent.
1. High-Yield Savings or Treasury Bills (Ideal for Beginners)
Let's start with the most secure one. If you're entirely new to this universe, placing your money in a high-yield savings account or short-term U.S. Treasury Bills (T-bills) isn't a bad decision by any means. As of 2025, a lot of online banks are still doling out 4.5% to 5% APY on savings accounts. Sites such as Ally, Marcus by Goldman Sachs, or even Discover are worth checking out. You can also purchase Treasury bills from TreasuryDirect.gov directly. A few of them come due in 4 to 8 weeks, and they're risk-free because they are insured by the government.
Advantages:
Extremely low risk
Great for holding emergency money
Simple to comprehend
Mistake many newbies make: They always forget about inflation. Even at a 5% yield, if inflation is 3.7%, your actual return is around 1.3%.
2. Fractional Shares — Buy Big Stocks With Little Money
Want to invest in Apple, Tesla, or Amazon but don't have hundreds of dollars to spend? Fractional shares are your buddy.
Apps such as:
Robinhood
Public
Fidelity
SoFi Invest
allow you to invest in a fraction of a stock with as little as $1. So if Amazon stock is priced at $140, and you only have $20, you can still purchase 1/7th of a share.
Savvy choices for 2025:
Nvidia (AI & semiconductors)
Apple (always consistent)
Google (Alphabet) (AI, cloud, and advertising)
Tesla (although somewhat risky)
Vanguard S&P 500 ETF (VOO) — for those who like to spread risk
Error to avoid: Flocking to meme stocks simply because they're popular. Dogecoin and GameStop are fun to look at, but they've torched a lot of purses.
3. Index Funds & ETFs — The Lazy Genius Technique
If you do not wish to look up specific companies (completely understandable), then index funds or ETFs are an excellent option. They pool together many hundreds of stocks, and if a company goes bust, your entire investment isn't lost.
Platforms to utilize:
Charles Schwab (excellent for beginners)
Vanguard
M1 Finance
Even with $100, you can invest in ETFs such as:
VTI – Entire US stock market
VOO – S&P 500 (the top 500 firms in the US)
ARKK – Technically weighted fund (greater risk)
Advantages:
Inbuilt diversification
Low charges
Suitable for long-term growth
Mistake people make: Not verifying the expense ratio. Be careful, and high costs can devour your profits, particularly when you are starting small.
4. Crypto (Only If You're Ready for the Wild Ride)
Alright — crypto still exists. And although it's not nearly as trendy as it was a few years back, 2025 is experiencing a more "adult" iteration of crypto.
For as little as $100, you might be able to dip your toe into:
Bitcoin – The most stable (for now)
Ethereum – Smart contract favorite
Solana or Polygon – Less expensive and faster options
Apps such as Coinbase, Kraken, or Cash App make it simple to buy crypto. Careful, though. Crypto is super high risk, and you only want to invest money you're comfortable losing.
Rookie mistake: Buying at a hype wave or immediately after a tweet goes viral. Take your time and don't FOMO (fear of missing out).
5. Micro-Investing Apps (Set It and Forget It)
There are apps designed specifically for people with minimal funds. These websites get your spare change or small donation and automatically invest it in a diversified portfolio.
Best ones for 2025:
Acorns – Invests the difference from rounding up your daily buys
Stash – Provides themed investing (such as green energy or technology)
Betterment – Does everything for you
These apps simplify investing and are dumb, which is really a good thing when you are just beginning.
Blunder: Forgetting the fees. Even if they are minor (like $1/month), that's 1% of your $100 lost each month. Just something to consider.
6. Peer-to-Peer Lending (Riskier, Higher Reward)
This one's not really on the radar. Sites such as LendingClub or Prosper allow you to lend your money to others, and they repay you with interest. So basically, you are the bank. Returns can be 5% to 11%, but there's always a chance that the borrower won't pay you back.
Be cautious: Invest only a little bit in this one. It's a great thing to diversify after you've saved up a bit more.
7. Invest in Yourself
Here's something that few blogs will say: If you have only $100, the best investment may not be stocks or crypto — but in yourself. Invest in a course. Learn a new skill. Launch a tiny side hustle. In 2025, websites like Skillshare, Udemy, Teachable, or even YouTube have great resources for:
Freelancing
AI tools
Canva designing
Selling digital products
Learning to code or market
You can even invest that $100 in building a digital product (such as an ebook or a Notion template) and sell it on Gumroad or Etsy. Such an investment tends to pay dividends much quicker than the stock market.
Last Tips for Starting Out
✅ Choose one platform and familiarize yourself with it before having multiple accounts
✅ Set up recurring deposits, even if it's just a minimum of $10/month — consistency is paramount
✅ Always have some cash reserved for emergencies (don't put it all in the stock market)
✅ Don't check your account daily — markets fluctuate
✅ Most importantly: Don't wait for "the perfect time." That time is likely now.
A Quick Sample Plan for Your First $100
Just to give you an idea, here's how you could divide your first $100:
$40 in VOO (S&P 500 ETF)
$20 in a fractional stock such as Nvidia or Apple
$15 in a high-yield savings account or T-bill
$15 in cryptocurrency (BTC or ETH)
$10 on a skill-building class
Naturally, you can scale up or down depending on your comfort level and objectives.
Final Thoughts
Getting started with $100 may seem modest — but it isn't. It's significant. It means you've begun, and most people never even come that far. Don't forget, you're not merely planting money — you're planting your mindset, your habits, and your future. A few years from now, you'll be looking back saying you wished you'd begun when you did.
If you enjoyed this article, pass it on to a friend who has been "thinking" about investing. Perhaps both of you can begin your adventure. Let me know what you’re doing with your first $100 — drop a comment below or shoot me a message. I’d love to hear your plans.
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