How to Invest 100 Dollars in Stocks [Starting Investing in 2019]

How do you start investing when you don’t
have much to invest? I’m going to reveal five investments you
can start with $100 and how to get started in 2019. These are non-traditional investments that
anyone can use. We’re talking starting investing today on
Let’s Talk Money. Beat debt. Make Money. Make your money work for you. Creating the financial future you deserve. Let’s Talk Money. Joseph Hogue with the Let’s Talk Money channel
here on YouTube. I want to send a special shout out to everyone
in the community, thank you for taking a little of your time to be here today. If you’re not part of the community yet,
just click that little red subscribe button. It’s free and you’ll never miss an episode. Now we’ve done a lot of investing videos
here on the channel. In fact, I did one on starting with $1,000
a few weeks ago but this one is going to be different. I hear from a lot of people in the community
that they want to get started investing but just can’t find many options on what they
can invest. They want to invest in stocks but you can’t
buy a $1,000 share of Amazon with a hundred bucks. What we’re talking about here is how to
get the most on your money, some strategies outside of traditional investments to really
get that bang for your Benjamin. I’ll show you how to get started on each
of these five investments for $100, how much you can expect to make and talk about some
of the risks in each. After these five investments, I’ve got a
bonus investment you can make that will give you a guaranteed return and it’s one that
a lot of people overlook so make sure you stick around for that. Our first $100 investment idea is a fun one,
flea market flipping. Like a lot of the investments we’ll look
at, this one is a little creative. You’re not going to be able to just put
down $100 and expect it to double or triple in stocks that first year but that’s exactly
what you can expect in flea market flipping. By getting something from local consignment
or flea markets and then selling it to a national market on eBay, you increase the demand and
price you can get for something. In fact, I interviewed two flippers earlier
in the year that said they won’t even touch a flip unless they can get a 25% return on
it in less than a month. If you take just that minimum return each
month and keep reinvesting your money, that $100 can grow to nearly $1,200 by the end
of the year. Now a few tips are going to make you successful
with flea market flipping. First is that it helps to focus on one or
a few types of items. You might try flipping sports memorabilia
or maybe porcelain figurines or kitchen items. This way, you start to get a feel for how
much something is really worth and the quick return you can make reselling it. You also want to use your smartphone to double-check
how much you can resell the item. You can check the price and quality of similar
items on eBay as well as what other sellers are offering like free shipping or accessories. Finally, for flea market flipping, is to open
your search to as many sources as possible . This means looking in the paper, going to
consignment shops and auctions, anywhere you can get a deal and find more things to flip. Our second $100 investment is going to be
to use commission-free investing apps like Robinhood. The app is similar to a lot of investing sites
but has one very important difference for someone getting started on less. Robinhood is commission-free meaning you pay
nothing each time you buy a stock. Even versus the cheapest online investing
site, that’s going to save you $5 a trade which would be 5% of your money on one hundred
dollars. Now there are a couple of drawbacks to Robinhood
that most people don’t talk about here on YouTube. It’s because they’re trying to get you
to click through so they get a referral commission. There are no retirement account options on
Robinhood so you’ll need at least one other website for your IRA or Roth. These are amazing ways to save money and will
be the best return you ever make so don’t neglect these special investing accounts. Another thing you don’t hear about Robinhood
is how it makes money. Listen, those commission-free trades don’t
come from nowhere. Robinhood makes money by selling your trading
information and lending out your shares to short-sellers. It’s a pretty common practice among brokers
but most people don’t hear about it. I don’t think it’s a deal-breaker, it’s
still a great way to start investing on $100 but you should know where they make their
money. So with Robinhood, you’re already up 5%
or more by not paying those trading fees you find on another platform. Another route you can take to invest your
money, and this is our third idea, is to invest only in exchange traded funds or ETFs. These are like the traditional mutual funds
but cost much less and still give you that instant diversification across hundreds or
even thousands of stocks. There are a couple reasons why I like ETFs
for investing. One is that instant diversification because
no single stock is going to drag your portfolio down. Even if a company’s stock crashes, it might
be less than one percent of your ETF so you won’t see the overall price suffer. For this idea of investing $100 though, ETFs
also mean you don’t need thousands to get those shares of Amazon or Warren Buffett’s
company Berkshire Hathaway. For any stock you want to buy, you can find
a fund that holds it and then just buy shares of the fund for a fraction of the cost. Now the return on both that Robinhood and
ETF investing isn’t going to be like what you’ll get flea market flipping or with
some other non-traditional investments. You’ll get the market return between 8%
to 10% a year but most people don’t understand, that’s all you need! Everyone wants to chase stocks and reach for
those double-digit returns but $100 invested monthly starting when you’re 30 grows to
over $280,000 by the time you reach 65 on a modest 9% annual return. If you’re looking for a place to start,
I’ll go over a few of the ETFs I hold and that I think can be solid investments for
2019. First here is the Vanguard Real Estate ETF,
ticker VNQ. This is a great way to get real estate in
your portfolio because the fund invests in hundreds of real estate investment trusts
that hold commercial property. The fund has been hit this year on rising
interest rates but pays a solid 4.4% dividend and the expense ratio is one of the lowest
you’ll find. Another fund I own is the Consumer Staples
Select Sector ETF or XLP. This fund holds shares in companies like Procter
& Gamble, Coca-Cola and Walmart, all the things that people are going to buy even if a recession
hits 2019 . That means the shares won’t fall as hard as other stocks and you still
get that nice 2.7% dividend. This last fund is one you might not have heard
of, the Alerian MLP or ticker AMLP. This fund holds master limited partnerships
which are special companies that hold energy pipelines and storage facilities. These companies make their money on the transaction
fee moving oil or natural gas through pipelines so it’s not necessarily all about oil prices. The fund pays an amazing 8.4% dividend and
bypasses the annoying K-1 tax form you get investing directly in MLPs. Our fourth investment you can make gets back
to more non-traditional investing and that’s buying books or courses. Now I know a lot of you are rolling your eyes
right now but let’s be honest, you’re not going to get much in stocks or other investments
for $100. Compare that with what you can get on Amazon
Kindle or courses on Udemy. The idea here isn’t to spend that hundred
on smut novels and video courses for solving a rubiks cube . You can get ebooks for building
a business for less than $10 and video courses on Udemy for less than $20 each. That means all the information you need to
get your side business started on that $100 and the potential to create something that’s
going to make you rich someday. Don’t overlook the opportunity to make your
money go farther by getting that knowledge that’s going to make it multiply. Our fifth $100 investment before we get to
the bonus investment that will guarantee a double-digit return is going to be a play
off the last one of buying books and courses. Your first reaction might be to buy these
books and courses for you but you can also find some for your kids to spark that entrepreneurial
spirit. Gotta be honest here, my kids are like my
walking, slobbering little lottery tickets right? I’m getting them all the opportunities they
can get through education and information so they grow up to be CEOs someday. And here it doesn’t even have to be a book
or a course on making money or building a business or anything. Get them a biography that’s going to instill
in them the values that will make them successful or something that’s going to open their
mind to a bigger world. So those are our five $100 investments you
can make in 2019 but our bonus one is going to guarantee you a double-digit return and
it’s one a lot of people don’t think about and this is just to pay off those high-interest
credit cards. Look, I know it’s not as sexy or as fun
as investing in the next hot stock but there’s no better way to guarantee you get an 18%
return or higher than making sure you pay off your card balance each month. This is different than saying pay off your
debts before you start investing. We’re talking about keeping those debts
paid off so maybe if you go on vacation and run up your credit cards. Pay those suckers off before getting back
on your investments. I’d love to hear your ideas for investing
$100 or your favorite investments for 2019 so use the comment section below the video
to share with the community. We’re here Mondays and Wednesdays with the
best videos on beating debt, making more money and making your money work for you. If you’ve got a question about money, just
scroll down and ask it in the comments and we’ll answer it in a video.

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