- How can you get rich with 100 dollars?
- How can you turn $100 into $1000?
- What should you invest 100 dollars in right now?
As the saying goes: “If you can make $1, you can make a million more”, sounds nice, but is it possible?
Many investment opportunities and assets in the markets present a chance to invest a small amount of money. While some people might laugh at the fact that you are investing $100 with the aim to 10x your investment, there is no harm in starting small. We assume that you need to acquire millions before investing; well, those days are long gone.
But the key is to select the good ones out of the bunch, keeping in mind that investment requires time and nurturing. There is no get-rich-quick scheme, and if it’s too good to be true, it probably isn’t good at all.
Five best ways to get $1000
Therefore, we have come up with five incredible ways for you to invest a mere $100 and grow that into $1000 progressively.
1. Open a high-interest savings account
Saving is a form of investing. Instead of leaving your money in a cheque account, you can open a ‘high-interest’ savings account. So, usually, the bank doesn’t offer high interest, but the secret is to compound your interest. You don’t withdraw the money and leave the interest to grow and increase your capital investment. That way, the larger your capital, the more interest you gain on your money. Another advantage is that with the bank, your money is safe and relatively risk-free.
2. Buy technology stocks
This method might require a bit more knowledge and understanding of the stock market. You can invest in technology stocks that have proven to be highly profitable, and these companies are outperforming many other stock sectors. It also has a little more risk than a savings account.
Once you make a profit, you can re-invest it and buy more shares later on. However, most technology stocks have a share price greater than $100, so you will own a partial stock when you buy some of them. However, taller companies with lower stock prices have good growth potential in the long term.
One such company is Zynga, a video gaming company with a share price of around $8.16. If we look at this chart over the last five years, we can see that the stock has been growing consistently. The stock has a market cap of $8.915 billion.
3. Invest in knowledge
Investing in knowledge might not seem lucrative at first, but it’s a reward that never stops paying you back. You cannot put a price on it. An excellent way to invest in knowledge is to find a subject to generate an income from. You then pay for courses and ensure that you excel in them to offer a paid service eventually or perhaps start a small business. Many reputable online courses cost less than $100, which provide valuable content to learn and upskill yourself.
4. Invest in tax-free investments
Another safe way to invest your $100 is to invest in tax-free investments. The government encourages individuals to save and therefore offers tax-free investments. These are generally in the form of bonds that deliver stable returns with relatively low risk.
The government limits how much you can invest annually; however, you are exempt from paying taxes on your earnings. In addition, you can make a monthly contribution and do not require to invest a lump sum. Therefore your $100 will be sufficient to start this type of investment.
The Vanguard Intermediate-term Tax-exempt Fund Investor Shares (VWITX) is a tax-free fund. Dividends earned on this fund are not taxable.
5. Trade-in forex
If you have a little more appetite for risk, you can venture into the forex market. However, you will need to gain some knowledge before starting to trade. On the other hand, if you do not have the expertise, you can follow a good signal provider and trade as per their recommendations. This will cost you a small monthly subscription fee, but you will at least be pursuing a professional.
In addition, you need to deploy proper risk management techniques to protect your capital. Many people started trading with less than $100 and grew their accounts to thousands of dollars. It is, therefore, possible with the proper discipline and knowledge.
Final thoughts
Growing money is not an easy task; it requires knowledge, patience, and cash to start. Whether it be $100 or $1000,000, the same rules apply. Therefore, it’s not about how much you start with but how well you can invest your capital. Whether it be property, stocks, gold, or even you, investing is not a new concept.
When you invest your money, you expect that the money will increase over time; the quicker, the better. But investing comes with risks, and the amount of risk varies depending on which type of investment you choose. For example, if you invest in stocks and the market crashes, you stand to lose some or most of your capital.
There’s even risk when investing in yourself, meaning if you decide to study and expect to make money from whatever you learned. The chances are that skill might not be required, or it pays very little. But professional investors have weathered the storms and learned valuable lessons on how to mitigate these risks over the decades, and for that reason, we came up with the best ways to grow your small capital.
But keep in mind that you will not see rapid growth overnight, and it requires a good amount of patience. If you are looking for a fast way to turn $100 to $1000, then you might opt for gambling, but there is no guarantee, and luck is your only ally.