How to invest $100: A Guide for Gen X
- youthforceau
- May 23, 2024
- 3 min read
You Don’t Need Thousands to Invest
The biggest misconception about investing is that you need thousands of dollars.
This isn’t true. However, it is harmful.
Believing this can stop you from reaping the benefits of investing now.
Gen X has one major advantage: time.
No matter how big or small investing now will allow you to;
Capitalise on time
Learn first-hand how the fundamentals of the stock market work
One of the best things about emerging fin-tech is that we can start investing with as little as $5. So we may as well take advantage of it.
Here’s how I would invest $100:
Download The Investment Apps
These apps let you start with less than $100.
Commsec Pocket
Raize
Pearler
Sharsies
Consider Your Values
Investing is personal.
Consider the time you’re willing to invest and your risk tolerance.
I invest long-term (7-10 years) in ETF, that is my main strategy and where 90% of my money goes.
But I also dedicate 10% to high-risk options like crypto and single stocks.
What is an ETF?
An ETF (Exchange-Traded Fund) is like a basket of different investments.
Here’s how it works:
Diversification: Instead of buying one stock, you own small parts of many stocks.
Easy to Trade: You buy and sell ETFs like regular stocks on the stock market.
Lower Risk: Spreading your money across multiple investments reduces the risk of losing it all.
Think of it as buying a sampler platter instead of just one dish. It’s a way to invest in a wide range of companies or assets without needing a lot of money.
How to Allocate $100
$50 in S&P 500 or ASX 200 ETF
The S&P 500 tracks the top 500 U.S. stocks, averaging 10% returns. There are many ETF’s you can get your hands on that mimic the S&P500, allowing you to get a slice for a fraction of the price. These include;
The ASX 200 tracks the top 200 Australian stocks, also averaging 10% returns.
BetaShares Australia 200 ETF
Vanguard Australian Shares Index ETF (Top 300 companies)
$40 in Another ETF
Explore other ETFs on sites such as Betashares, Vanguard and iShares.
Options range from emerging economies to niche markets like video games and esports.
$10 in High-Risk Investments
Dedicate $10 to something fun and high-risk, like crypto or a single stock.
Apps like Coinspot and Etoro make it easy to invest in crypto.
For single stocks, consider companies you’re passionate about or major players like Apple or Google.
Having a slice of high-risk investments will allow you to see the risk spectrum of investment and then you can decide what percentage of your portfolio you genuinely want in these investments.
My $100
$50 S&P500 or ASX200
$40 Personal ETF
$10 Crypto or Single Stock
Ultimately, your portfolio depends on your own values.
Instead of buying that new dress or a few extra drinks, start investing now.
Even if you only have $5, it won’t turn into a house, but it’s a start.
Investing small amounts helps you self-educate and build confidence for when you do have more money.
The technology is there to help us - it is just a matter of us using it.
Legal Information
Investing involves risk. You are not guaranteed to make money and you may lose the money you invest. We do not provide personalised advice or recommendations. The information provided is general in nature and current at the time of writing. You should seek independent legal, financial, taxation, or other advice to determine whether an investment is appropriate for your objectives, financial situation, and needs.
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