There should be no price barrier when it comes to investing your money. Sure owning a single stock of Apple or Amazon will set you back over $1,000 but you can still make wise investment decisions for your future.
In my experience, there are two preferred methods.
The first is a retirement account. I put 10% of my pay away a year in my TSP (government 401K). TSP then manages each fund across its different asset class; I decide the weights of each fund. Somewhere in there I own partial shares of plenty of blue-chip companies.
The second way is through online brokerages like Acorns and M1 Finance. Acorns purchases fractional shares of ETF’s while M1 you get to hand pick the stocks you want in your basket where fractional share are also purchased.
If I had only $100 to invest a month, I would focus on doing one of the two options:
- A 401k if it is available, especially if your company makes matching contributions.
- An IRA. Both Acorns and M1 Finance offer retirement accounts. I would focus on ETFs that try to match the S&P 500 index and a REIT.
The biggest reason for the two investment tools is their tax advantages and lower risk. If you plan on needing the money before your retirement age there’s going to be a better plan for you, but for most people saving and investing is about saving up that nest egg for retirement.
Cheers and good luck!