Welcome to Ways to Invest $100 (Part 4)
Buy fractions of a share with Stockpile
Normally, you have to buy whole shares of a stock. Stockpile, however, lets you buy fractions of a share. If you have $100 and the company you want to invest in has a stock worth well over $100, you can buy $100 worth of that stock through Stockpile. Each transaction with Stockpile has an added fee, but it’s relatively minimal and can help you invest in big-name companies without breaking the bank.
Grow your emergency fund
The best way to invest $100 is by growing your emergency fund. How do emergency funds have anything to do with investing? It’s quite simple. Unless you have an emergency fund, you have nothing to fall back on when you experience a surprise expense.
Most experts recommend you have an emergency fund of 3-6 months of your living expenses. That kind of money can be overwhelming if you have nothing saved for emergencies. If you’re in that situation it’s easy to think ‘what’s the point?’ and not even start building an emergency fund.
If you want to invest $100 and have no emergency fund, I think it’s a no-brainer where you should throw that money. Use that $100 as seed money to grow the fund to $500, then to $1,000 and so forth. By doing so, you help your future self avoid the ‘swipe and pray’ game when an emergency happens.
Thanks for watching this video. If you missed parts 1, 2 or 3 you can view them by clicking the links below. Be sure to leave your comments and like or share if you found this content helpful.
Part 1 – https://youtu.be/ZfFWluo6gMs
Part 2 – https://youtu.be/aAMrHYdQmRQ
Part 3 – https://youtu.be/foM7yuJaBiY