Investing 101: How to Start Investing With $100 (or Less)

If nobody in your family ever talked about investing, you're not behind — you're just early. Because you're reading this. Right now. Let's go.

The one thing you have to know first

Investing = buying tiny pieces of companies (stocks) or loans (bonds) and letting them grow while you live your life. The whole game is time in the market, not timing the market. The younger you start, the more compound interest does the heavy lifting.

Example: $100/month starting at 25, average return, hands off — you're a millionaire at retirement. That's not a scam, that's a spreadsheet.

Retirement first, always

Before you touch a brokerage account, use the accounts that come with tax bribes:

• 401(k) with employer match — free money, take all of it, no exceptions
• Roth IRA — you contribute money you've already paid tax on, and it grows tax-free forever
• Traditional IRA — tax break now, pay later

If you can only do one thing, do the match. If you get a full match up to 4% and you're not contributing, your boss is literally trying to hand you cash and you're saying no thanks.

Opening your first Roth IRA

Pick one of these three brokerages. They're all free, all reputable:

• Fidelity — my pick for beginners, best app
• Vanguard — invented index funds, cheapest
• Charles Schwab — great customer service

The signup takes about 15 minutes. You'll need your SSN, bank info, and employer info. Yes it feels like a lot. Do it anyway.

What to actually buy

Here's where people freeze. The good news: you don't have to pick stocks. Index funds buy a little of everything, so you're not betting on one company — you're betting on the whole economy.

Beginner-friendly options:

• FZROX (Fidelity) — total US stock market, zero fees
• VTI (Vanguard) — same thing, ETF version
• Target date funds (like FDKLX for 2065) — one fund, auto-adjusts as you age

If you're overwhelmed, put everything in a target date fund. Truly. That's the whole strategy. Set the automatic contribution, close the tab, live your life.

The best portfolio is the one you'll actually leave alone.

What to ignore

• Anyone on TikTok yelling about a stock
• Your bank pushing you toward their high-fee mutual funds
• Crypto influencers with lambos
• The urge to check your balance every day

What to do this week

1. Check if your job offers a 401(k) match. Contribute up to the match, minimum.
2. Open a Roth IRA at Fidelity, Vanguard, or Schwab.
3. Set up an automatic $25, $50, or $100 monthly transfer.
4. Buy a target date fund with it.
5. Close the app.

You just started investing. Welcome to the club. Future you is going to be so proud.