Investing with $100 or Less: 3 Great Options

Many people mistakenly think that you need thousands of dollars to start investing. 

However, this mindset can slow down your investment goals. The truth is, you can start building your wealth with as little as $100. The key is to educate yourself and learn where to invest. This article will discuss three great investment options for those with $100 or less.

Investment Option #1: Individual Stocks

Many people find it scary to invest in stocks, 

especially when you're starting with a small amount of money. However, buying individual dividend stocks can be a very cheap investment option. When you invest in a stable and profitable company by buying dividend stocks, you will earn dividends as a company makes profits.

 If you start with one stock today and reinvest your dividends, you can buy more stocks over time. This approach, commonly called a dividend reinvestment plan, has been used by many savvy investors to grow their portfolios significantly.

To make the most out of this option, take advantage of affordable or accessible trading services. This way, you can eliminate the need to pay costly per-trade fees, which will only decrease the amount of money you have.

Investment Option #2: Peer-to-Peer Lending

Peer-to-peer lending is a fast-growing and readily accessible investment technique that continues to rank highly in terms of cheap investment options. If you have some cash to save someone from a financial thunderstorm,

 All you have to do is find a peer lending service that brings lenders and borrowers together and offers your money for borrowing. Besides saving someone on a financial rainy day, you can also earn a high level of interest on your money.

Peer-to-peer lending platforms are also super easy to navigate. Typically, borrowers will approach these platforms for fast loans, after which they will fill out a loan application form. Once your credit evaluation is assessed, the information is shared with potential investors, who will choose the most appealing loans.

The amount of money you have doesn't matter.

 Even with just $25 to test the waters, investing in peer lending is still possible. These platforms will also allow you to spread your investment risk by channeling your money toward more than one loan.

 This means that instead of investing all your money in one loan, you can opt for the partial investment option to buy small fractions of whole loans, known as notes. This is smart, as it helps you spread your risk across multiple borrowers.

Investment Option #3: Books

Investing in life-changing books is another low-cost investment that you'll never regret.  There are many benefits that come with being knowledgeable, and I can't help but emphasize the importance of reading. Books have been hailed as a source of valuable insights for investors and non-investors alike. If you're looking for an investment that will inspire and improve your version of yourself, then this is the way to go.

Unlike one-time expenditures such as buying a drink, the intellectual flowering that you'll gain from reading a good book will take you farther in life than you can imagine. You will get to apply this knowledge in so many aspects of your life, which will have great impacts on how you live. 

The best part is that you can read one book as many times as you want, and in case you get tired, you can always pass it on to the next person who will equally gain from reading it.

Final Thoughts

Investing with $100 or less is possible. The key is to educate yourself and find the right investment option that aligns with your financial goals. With individual stocks, peer-to-peer lending, and books.