How to invest $100 in 2018.
You don’t need a lot of money to invest. When teaching yourself how to invest it’s better to start with something small like $100. Now as we only have $100 our options are limited but there a still a few ways we can start out.
Stocks are something everyone should have a little bit of money for no matter their ages or income. Investing in stocks is still one of the best long-term investments you can make. Now, when people start with a low amount of money ($100) they think they invest in penny stocks. Penny stocks -made famous by the movie “The Wolf Of Wall Street”- are simply companies that have very low share prices… some can be below one cent per share… This might sound appealing, but the reality is, you have a 90% chances of losing your money as their company could be running simply through a person’s garage and you wouldn’t even know due to the lack of information about them that’s listed. One day they might just shut up shop and move on and just like that your money will be gone. Due to the small prices of most penny stocks, they are not listed on a major exchange so your money is much harder to trace. People often buy penny stocks as they are cheap and seem to be a better option than much higher priced stocks like Amazon where their stock price is well over $1,000.
So, I’m not saying that you should look at higher priced shares to invest in as that won’t be the answer, for $100 you can by a whole 2 shares in Coca-Cola, and this type of investing won’t do you any good because even if you get a return of 10% you will only make $5 per share, and that isn’t any guaranteed either.
I say look for companies that have record profits in the last few years, have low staff numbers and are priced around $5-$10 per share. These types of shares do have the ability to jump 20% in a year making you a nice return.
What Type Of Stock?
Now, what type of stocks should you invest in? For anyone starting or only have a small amount of capital, I would suggest blue-chip stocks. Blue-chip stocks are stocks that have been around for a very long time -50 years plus- and they are often a very reliable place to leave your money for long-term growth. These types of stocks are often found in the Dow-Jones. My suggestion for blue-chip stocks would be something like G.E as they seem to be on the right path.
In the end, you won’t be making any massive return, yes you might get lucky, but it can only last so long. I do encourage people to invest but start with a low amount as you don’t want to lose your life savings. For that reason, I will also cover how to invest $1,000 and $10,000 later in the week.
Look out of part 2 and 3 of HOW TO INVEST $100 which will be covering index funds and Cryptocurrencies.