The Best Money Apps I Actually Use—and Recommend to My Students

How to Start Investing With Just $100: Yes, It’s Totally Possible

If you’ve ever thought investing was only for the rich or people who wear suits to work (ugh, no thanks), I have some news for you. You. Can. Start. With. $100. Seriously. I’m Rachel Simmons and if there’s one thing I want women and financially independent go-getters like you to know, it’s this: the wealth game is changing, and there’s room for all of us.

Back in my early twenties, I believed the investing world was off-limits. I had student loans, one pair of work shoes, and a budget that gave me heart palpitations. Sound familiar? But once I started learning the ropes—and yes, fumbling through a few rookie mistakes—I realized $100 is more than enough to get your money working.

Reframe What You Think About Investing

Before we dive into the “what” and “how,” let’s do a little mindset makeover. Investing isn’t about gambling your money or waiting for the next GameStop drama to unfold. It’s about long-term compound growth. You’re planting seeds. Forget overnight riches; we’re talking financial freedom—and that takes strategy and commitment, not luck.

So, What Can $100 Really Do?

Look, nobody’s saying $100 will make you a millionaire tomorrow, but it can be your first step toward something bigger. And more importantly, it builds the habit. Here’s what $100 can do:

• Open the door – Start an investment account and get in the game.
• Create momentum – Once you start, you’re more likely to keep going.
• Build confidence – Gain experience without risking your savings.

Start With a Goal (Yes, Even If It’s Broad)

Investing without a goal is like driving with no GPS. Sure, you’ll move—but where are you going? I tell my clients (and my friends over coffee) to define their “why.” Is it early retirement? A dream trip to Italy? Replacing your 9-to-5 with passive income streams?

Your goal doesn’t need to be perfectly mapped out right away. Just pick a general direction. That gives your $100 a purpose—and trust me, money loves purpose.

Step-by-step: How to Start Investing With $100

Step 1: Choose the Right Platform

This is where the magic begins. No need to walk into a stuffy bank. There are dozens of online brokerages and apps that let you start with as little as $1. Most are user-friendly, and some even tailor suggestions based on your goals.

Look for platforms that offer:

• No account minimums
• No (or low) trading fees
• Fractional shares – so you can buy a slice of Amazon for $5 instead of $3,000
• Robo-advisors – if you’re hands-off like me when I’m on vacation

Some beginner-friendly options include apps like Acorns, SoFi Invest, Fidelity Go, and M1 Finance. Do your research and choose the one that aligns with your investing style.

Step 2: Understand What You’re Investing In

Confession: I once bought a stock because the logo looked cool. Spoiler—it tanked. Lesson learned. You don’t have to become a Wall Street analyst, but you should know the basics.

Popular beginner-friendly assets include:

1. ETFs (Exchange-Traded Funds): These are baskets of stocks or bonds that spread out your risk.
2. Index Funds: Think of these as “set it and forget it”—they follow market indexes like the S&P 500 and generally offer steady, long-term growth.
3. Individual Stocks: Higher risk, but potentially higher reward. Start slow, maybe $10 or $20 here.

Step 3: Automate If You Can

If you’re anything like me, manual budgeting and tracking can fall off your radar. Automating your investment contributions—even if it’s $10 a month—keeps you consistent. Consistency is what builds wealth over time, not market timing.

The Power of Compound Interest (aka “Wealth Magic”)

Say it with me: compound interest is your best friend. It’s the reason your $100 can become $1,000 without you lifting a finger—eventually. Here’s a quick illustration:

If you invest $100 and add just $25 each month with a 7% annual return, you’ll have around $5,000 in 10 years. Now imagine adding $50? Or $100? Boom. Wealth builder unlocked.

Diversification: Don’t Put All Your Avocados in One Basket

If your entire $100 goes into one hot tech stock and it crashes, ouch. Diversification spreads out your risk so one bad day doesn’t wreck your financial picnic.

You can diversify with:

• – easy and automatic diversification
• Starting a side gig or savings goal alongside investing
• Alternative assets like REITs (Real Estate Investment Trusts), even in small doses

Real Talk: What to Avoid When Investing With $100

Let’s keep it real. There are traps out there, and I’ve stepped in more than a few. Here’s what to dodge when starting out:

• Chasing hype – Just because a coin is trending on TikTok doesn’t make it smart.
• High-fee funds – They eat away at your returns like that one friend always “forgetting” their wallet.
• Unregulated platforms – If it looks shady, it probably is. Stick to well-reviewed, licensed apps.

Progress Over Perfection

Investing isn’t a one-time leap—it’s a series of small, smart moves. Don’t stress about doing it all perfectly. Your $100 investment today builds your knowledge, your discipline, and your confidence. And that matters more than the market’s next big swing.

Remember, you don’t have to be an expert to build wealth. Just a woman (or a man or a they) with a plan, a goal, and the guts to take control of your own finances.

Ready to start? You know I’ve got your back. Check out our about page to learn more about Financeone, or contact us here if you want a nudge in the right direction.

The journey starts with $100. Let’s go.