You might think that getting rich takes a huge investment but that is not true. Some of the richest people in the world got where they are with almost nothing when they started.
It, truly, is never the lack of resources that is in your way of success. Rather, it is the lack of resourcefulness that gets in the way of making money.
Also, you must always remember to save as much as you can so that you can invest more. It may be a good idea to open a savings account to grow your money.
If you save up around 100 dollars, a few high potential paths open up for you to make money. This includes investing in individual stocks. Just read it on the StocksReviewed site to get a better idea about how to invest your money.
Save your Money
The first thing you need to do as an investor is to save as much money as possible. You will never have enough money to invest if you keep consuming things that you do not need and spend everything you earn.
Cut out the consumption of luxury goods and services for good or until you are rich. In other words, if its something that you can live without – then cut it out (at least for now).
The second thing that you need to do is find cheaper alternatives to things that you do need. There are always cheaper alternatives to most things that we consume.
For instance, instead of a sandwich from a shop, you can buy bread and meat and make your own sandwich. Instead of buying a coffee at a coffee shop, make your own.
The more you save, the more you can invest so be cheap regardless of what others think. Also, opening up a savings account is an excellent idea. You will have the opportunity to grow your money at a steady rate.
3 Ways to Invest As Little As 100 dollars or Less
There is a lot you can do with 100 dollars that were not possible a decade ago. Here are some ways to make money with a small investment amount.
Invest With Robo-Advisor
A financial advisor helps to invest your money in the right place. However, he will not help you if you only have 100 dollars to invest. It’s just not worth it as he will not benefit much from advising you.
What you can do is use a Robo-Advisor. They have recently come into existence disrupting the financial advising industry.
Robo-Advisors take the job of a financial advisor and completely automate it. They use algorithms to figure out what to invest in.
You will have to take a survey that will ask questions such as your age, goals, and risk tolerance. Other things you have to disclose include what you are saving for and how much money you make.
Robo-Advisor will consider these factors and create a plan for you. The whole process is possible because of algorithms. This means that the service is very cheap. Furthermore, Robo-Advisors can take on very small accounts.
A leading Robo-Advisor is Betterment. It charges .25% as an annual fee making it much cheaper than a financial advisor.
You pay this small fee in return for managing your money. Furthermore, Robo-Advisors facilitate the process of rebalancing your portfolio as needed.
Invest in Individual Stock
The next 100 dollars or less money making idea is investing in an individual stock. There are many free trading apps like Robinhood. It allows you to invest in thousands of different stocks.
You will have choices from the New York Stock Exchange to Nasdaq. This means you get thousands of different companies to invest in.
The disadvantage is, you can only buy whole shares of the stock. For this reason, you cannot buy an expensive stock like Amazon or Google with just 100 dollars.
However, there is a new platform that calls itself M1 Finance that allows you to buy fractional shares. With it, you can buy 1/10000th of a stock. This means that you can buy Amazon and Google stock with very little money.
M1 Finance is completely free just like Robinhood and they have a 100 dollar minimum account balance. So you can put 50% of your money into Google and 50% into Amazon stock using fractional shares.
Luckily, there is no annual charge or commission fee whatsoever. This makes M1 Finance a superior platform to Robinhood.
Invest in A Business
Finally, think about investing in a business if you have around 100 dollars in your hand. You might be thinking 100 dollars is not even close to being enough to invest in a business.
However, some wonderful ideas can make you money. For instance, you can open up a car washing business with only some cheap cleaning products under 100 dollars.
Or you could start up a garbage removal business. Just rent a truck for under 100 dollars and pick up junk from door to door.
Other than that, you can also start up a blog. 100 dollars will cover your expenditure for a year. You just have to come up with some brilliant content and market it online to start making a return on that investment.
5 Ways to Start Investing With No Money
Get A Bank Loan
The greatest entrepreneurs still take loans. If they are doing it, why should you refrain from it? The goal is to create multiple streams of cash flow.
Remember that there is a difference between good debt and bad debt. You need to take a loan for an asset and not a liability. So, take a loan, and instead of using it to buy a new bag, start a business.
Friends And Family
Allow your family and friends to invest in a promising return. Structure the deal for a win-win situation. The richest in the world uses other people’s money to invest.
Finding Investors
Investors are all around. Just search on Google and you will find crowdfunding, funding cycles, and other investors.
What you need more than an investor is an excellent business proposition. The perfect pitch will eventually land you the financial support your business needs.
Sell First
Create and sell a product first before producing it. Once you sell the idea, you will have enough money to produce it. Pre-launching via Facebook marketing is an easy and costless way of doing this.
Factoring And Leveraging
If you have a contract, show it to the bank and they will loan you the money for it. Pay them back after you start receiving profits
And as for leveraging, pitch for someone else’s goods or service. When you get the money for it, connect the business and investor. You get to make some money as the middle-man and get a commission for each sale.
Final Thoughts
- Save money, don’t waste it!
- Technology allows us to invest 100 dollars or less with the best advice possible cutting out the human factor in financial advising
- Finally, there is no shame in using other’s money to make money in a win-win situation for both you and your investor.