5 Ways To Invest $100 A Month
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Compared to the huge minimum deposits required for most traditional investments, $100 is just a drop in the ocean. Because of this, many people see the investment of smaller denominations of money as being futile in their quest to achieving financial success. But, what these people don’t realize is that building wealth is a slow process and that it doesn’t matter how small you start.
While it’s true that investing $100 a month won’t exactly earn you a seat next to Jeff Bezos at the next billionaires’ summit, starting small, rather than remaining static, will definitely move you a rung up on the financial ladder. As long as your time horizon for your investment is long enough, you’ll be amazed by how much investment power lies in $100.
In fact, there exists many interest-bearing investment accounts that exploit the power of compounding and as a result, offer high potentials for steady wealth accumulation. So let’s now go through 5 ways you can invest $100 a month!
Method #1 : Investing In Single Stocks
The first way to invest $100 a month is by buying individual stocks. I’m sure you probably didn’t expect the stock market to pop up first, but here we are. Although traditional investment firms will require you to cough at least $1,000 for you to make your first stock market investment, robo- advisors such as betterment and M1 finance will allow you to start small.
There’s no denying that Wall Street is an intimidating investment platform, especially if you are pinching pennies and can only spare 100 bucks for your financial goals. Up until recently, investing in the stock market was a very expensive venture. Most brokerage firms demanded exorbitant minimum deposits and the commissions for trading in stocks are equally frustrating. This created the impression that the stock market is for top-class investors with millions of dollars to spare, yet this is far from the truth.
Thanks to the overwhelming shift towards fractional shares, novice investors can now make their dent in the stock market even with modest contributions. Through partial ownership of shares, you get to own a small fraction of company stock as opposed to full shares which are more expensive. This allows investors to be more deliberate with the amount of…
