You Can Start Today with $100
The biggest myth in investing is that you need a lot of money to start. Thanks to fractional shares, zero-commission brokers, and low-minimum index funds, you can begin investing with $100 or even less. The important thing is not how much you start with — it is that you start.
Where to Invest Your First $100
- Option 1: S&P 500 index fund — Buy fractional shares of VOO or SPY through Fidelity, Schwab, or Robinhood. You own a piece of the 500 largest US companies. Add $25-$50/month via automatic investing
- Option 2: Total market index fund — VTI (Vanguard) or FZROX (Fidelity, zero fees). Broader than S&P 500 — includes mid and small-cap stocks
- Option 3: Target-date fund — Automatically adjusts from aggressive to conservative as you age. One-fund solution. Choose the fund dated closest to your expected retirement year
- Option 4: Roth IRA — Open a Roth IRA at Fidelity, Schwab, or Vanguard (many have $0 minimum). Invest your $100 in an index fund inside the Roth. Gains grow tax-free forever
Building the Habit
- Set up automatic investing — Even $25/week or $50/month on autopilot. Consistency matters more than amount
- $100/month for 30 years at 10% — Grows to $226,000. You only contributed $36,000. Compounding did the rest
- Increase by 10% each year — When your income grows, increase your investment amount. $100/month growing 10%/year for 30 years = $630,000+
- Never check daily — Set it, automate it, and check quarterly at most. Daily checking leads to emotional decisions