Finding extra money to put into a brokerage account and invest can be really challenging -- especially if you have pressing expenses to take care of today.
It may seem really intimidating to try to transfer a ton of money out of your checking account to a brokerage firm to buy stocks. But what if you don't have to invest a fortune? If you invest just $100 a month, will that contribution really make a big difference in your net worth in the end?
How $100 a month can help make you wealthy
Investing just $100 a month can actually do a whole lot to help you grow rich over time. In fact, the table below shows how much your $100 monthly investment could turn into over time, assuming you earn a 10% average annual return.
| If you invest $100 a month for this many years... | ...this is how much you'll end up with. |
|---|
| 5 | $8,058.73 |
| 10 | $21,037.40 |
| 15 | $41,939.68 |
| 20 | $75,603.00 |
| 25 | $129,818.12 |
| 30 | $217,132.11 |
Data source: Author's calculations
That's a substantial amount of money to end up with, especially given that the median 401(k) balance for individuals ages 65 or over is just $87,725. You could end up with well over double what the typical American has saved for retirement, just from your $100 a month investment alone.
How investing $100 a month helps your wealth grow
A $100 monthly investment doesn't seem like a lot, but when you put this money into the market, it earns returns. If you earn 10%, in a year, your $100 initial investment would be worth $110.00. Next year, you would earn 10% not on $100, but instead on $110, so you'd end up with $121.00. This happens with each investment that you make and with each year that passes, and it has a snowball effect.
The more you're able to invest and the more time you have for compound growth to work, the more powerful the impact is. But even if you don't have more than $100 a month to invest right now, you're better off getting the money into the stock market and getting it working for you so your snowball can start to build.
If you're not sure where to come up with an extra $100 a month, some possible options for you could include:
- Do a few hours of overtime or extra work. If you can earn $15 an hour, you'd only need to work for about seven hours during the course of the entire month to make $100 extra to invest. Many people can find seven hours.
- Go through your budget carefully. You can probably find one or more expenses to cut that add up to $100. Switching to a cheaper cellphone plan, canceling a streaming service you don't use much, and giving up one meal out would probably get you there.
Over time, if you can increase the amount you invest, that would be ideal as you can build even more wealth. But you don't have to worry about that when you're just getting started. Just begin with that first $100. As you see how your money grows, you may get excited about investing and find new ways to increase your contributions -- and thus the power of compound growth in your wealth-building efforts.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
Investing just $100 a month can actually do a whole lot to help you grow rich over time. In fact, the table below shows how much your $100 monthly investment could turn into over time, assuming you earn a 10% average annual return. If you invest $100 a month for this many years...
Is investing $100 a month worth it? ›
Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100. If you make a monthly investment of $200, your 30-year yield will be close to $400,000.
Is $100 enough to start investing? ›
Investing can change your life for the better. But many people mistakenly think that unless they have thousands of dollars lying around, there's no good place to put their money. The good news is that's simply not the case. You can start investing with $100 or even less.
How much will I have if I invest $100 a month for 10 years? ›
But by depositing an additional $100 each month into your savings account, you'd end up with $29,648 after 10 years, when compounded daily.
How much is $100 a month for 5 years? ›
You plan to invest $100 per month for five years and expect a 6% return. In this case, you would contribute $6,000 over your investment timeline. At the end of the term, your portfolio would be worth $6,949. With that, your portfolio would earn around $950 in returns during your five years of contributions.
Is $100 a month enough for retirement? ›
Based on the same parameters above, you'd save approximately $327,161 by age 65 if you put away $100 a month with a 3% partial employer match of your salary.
How much is $100 a month from 25 to 65? ›
$1,176,000. You do NOT have to retire broke.
How much will I make if I invest $100 a month? ›
A $100 monthly investment doesn't seem like a lot, but when you put this money into the market, it earns returns. If you earn 10%, in a year, your $100 initial investment would be worth $110.00. Next year, you would earn 10% not on $100, but instead on $110, so you'd end up with $121.00.
What happens if you save $100 dollars a month for 40 years? ›
In that case, investing $100 a month over 40 years will leave you with an ending balance of around $531,000. Meanwhile, you'll only be contributing a total of $48,000 to get to that point. So all told, you're looking at a $483,000 gain, which is pretty impressive.
How much is $100 a month for 18 years? ›
This chart shows that a monthly contribution of $100 will compound more if you start saving earlier, giving the money more time to grow. If you save $100 a month for 18 years, your ending balance could be $35,400. If you save $100 a month for 9 years, your ending balance could be about $13,900.
If you save $100 monthly for an entire year, you'll have $1,200 in the bank. But if you keep your savings in a savings account, you'll also earn interest. After one year of keeping $1,200 in a high-yield savings account with a 4.5% APY, you'll earn $54 in interest.
How much is $100 a month for 20 years? ›
After 20 years, you will have paid 20 x 12 x $100 = $24,000 into the fund. However, the compounding return will more than double your investment.
How much is $100 worth in 10 years? ›
As you will see, the future value of $100 over 10 years can range from $121.90 to $1,378.58.
| Discount Rate | Present Value | Future Value |
|---|
| 3% | $100 | $134.39 |
| 4% | $100 | $148.02 |
| 5% | $100 | $162.89 |
| 6% | $100 | $179.08 |
25 more rowsIf you start saving $100 a month with a 6% average annualized return on your investment, you'd have about $46,000 in 20 years. But if you wait 10 years to start saving and invest the same amount, you'd wind up with just $17,000 two decades from now, since you missed out on some of that early compound growth.
How much is $500 a month invested for 10 years? ›
Here's how a $500 monthly investment could turn into $1 million
| Years Invested | Balance At the End of the Period |
|---|
| 10 | $102,422 |
| 20 | $379,684 |
| 30 | $1,130,244 |
| 40 | $3,162,040 |
Dec 17, 2023
A solid emergency fund can save the day when you must cover an unexpected cost. If you don't yet have an emergency fund, it's never too late to start building one. By contributing $200 each month, your fund will add up throughout the year -- $2,400 is a solid amount of cash.
How should I invest $100 dollars a month? ›
If you asked the average saver if it's safer to invest $100 in the stock market or to put $100 in a savings account, most would pick the savings account. This makes sense in the short term; stocks can lose value, but the Federal Deposit Insurance Corporation (FDIC) guarantees savings accounts.
What is a good amount of money to invest monthly? ›
Investing 15% of your income is generally a good rule of thumb to meet your long-term goals. Even if you can't afford to invest that much today, you can still start investing with what you can afford. Your investment amount may fluctuate as your cash flow changes, but staying consistent can pay off in the long run.
What to invest $100 a month into? ›
- Invest in index funds or ETFs.
- Robo-advisor platforms.
- Dividend-paying stocks.
- Multi-asset funds.
- Pick a portfolio of shares.
- Invest with a tax-efficient account.
- Investment tracker.
- The risks of investing a £100 monthly amount.
