You don’t need thousands to start investing. You need $100 and the willingness to start now rather than later. Time in the market — not the amount you start with — is what builds wealth.
Why $100 now beats $1,000 later
Compound interest is the most powerful force in investing. $100 at 8% annual returns becomes $466 in 20 years without adding another dollar. The same $100 invested 5 years later becomes only $317. Starting early matters more than starting big.
Option 1: Open a Roth IRA
The best account for most beginners. You invest after-tax money and all growth is completely tax-free forever. Open one at Fidelity, Vanguard, or Charles Schwab — all have no minimums, no fees, and offer fractional shares.
Option 2: Buy one index fund (a fund that tracks the whole market)
Don’t pick stocks. Buy one broad index fund (a fund that tracks the whole market) instead:
- VTI — Vanguard Total Market ETF (0.03% fee)
- VOO — Vanguard S&P 500 ETF (0.03% fee)
- FZROX — Fidelity Zero Total Market (0% fee)
Option 3: Use a robo-advisor
Betterment or Wealthfront automatically invest in a diversified collection of investments. Set it once, done. About 0.25% annually — reasonable for full automation.
The most important rule
Keep investing. Set up automatic monthly contributions — even $25. The habit matters more than the amount. Start with $100 today. Your future self will thank you.