How to Invest with Little Money: 3 Small Investment Options

Last Updated on December 14, 2021 by Henry John

For many years, I was a low-income earner, and the idea of investing with the little money that I was making was more than ‘just an idea, for me, it was my only way out of financial insecurity.

However, I initially had doubts. I questioned the prospects of investing with little money. Is really worth it? Can investing $100 monthly make any significant difference?

Consider this; A monthly investment of $100 for 10 years at a 10% annual rate of return (which the S&P 500 has averaged historically) would yield $20,000.

In 10 years’ time, you should be able to up your monthly contribution from $100 to $1,000. Starting with $20,000 and consistently investing $1,000 for 20 years at a 10% annual rate of return would yield $905,930 in return.


There are countless true stories of people making over $100,000/year for years and have $0 invested, worst, they are engulfed in a lot of debts.

This goes to show that, a lot of time, it’s not about how much you have but what you do with what you have. A $20,000 investment in Tesla a decade ago when was valued at $3.84 per share would be worth over $2,000,000 today.

Is starting small worth it? I bet my house it is.

And the important thing about starting small, aside from the potential return, is the investing discipline you acquire over time.

Financial discipline is one of the biggest assets of every successful investor. And that is why before you start investing you should consider these 8 factors.

The journey of a thousand miles begins with one step. You can start walking, eventually you ride on a bike, then a regular car, perhaps a sport car and who knows a private jet. The most important thing right now is START.

If you are looking for investment options with promising potentials but have little money, here are fifteen small investments options to consider:

1. Invest in Cryptocurrencies

Cryptocurrencies  are great examples of high-risk-high-reward investment assets that you can invest in with as little as $10-$100.

Generally, Cryptocurrencies a form of decentralized virtual currency that are cryptographically secured, they are designed to be used in the buying and selling of goods and services digitally.

Some cryptocurrencies like Bitcoin and Ethereum have gained widespread popularity and the backing of prominent individuals and institutions.

Early this year, online payment powerhouse Paypal (PYPL) announced that it will allow its users to pay in Bitcoin and other cryptos such as Ethereum, Litecoin and Bitcoin Cash. Other major companies like Microsoft (Xbox), Twitch, Home Depot, Burger King, AT&T,, and Rakuten are accepting Bitcoin as a payment method.

With over $1 trillion dollars market cap, cryptocurrencies are no joke, they are a big deal.

Nonetheless, not all cryptocurrencies are worth investing in, however, bear in mind that not every stock listed in the NYSE and NASDAQ are worth investing in.

Do you know that a $100 investment in Bitcoin back when it was worth just 6 cents would be worth around $70,000,000. And a $100 investment in Dogecoin early this year would have 10x in value.

There are a lot of cryptocurrencies that are currently under $10 you can invest in that have the potential to bring BIG returns. And because of their low entry point, you don’t need to break the bank to start investing in them.

All you need to do is to know as much as you can about crypto investing, create an account with Coinbase and start investing.

Generally, it is advisable not to go all-in with this type of investment because of its high-risk nature.

Here are some cheap cryptocurrencies under $5 and $10 to consider.

2. Invest in Solid Penny Stocks

If I remember correctly, ‘penny stocks’ first can under my radar as an advertisement by one of this so-called ‘trading guru’. It was pitched as the fastest and easiet way to make money.

Of course the advertisement pitch came with a caveat requiring me to buy a $1,000 trading course, so I can learn the ‘secret’ strategies to making millions trading penny stocks.

DON’T let anybody sell you a pipe dream that trading penny stocks is the easy and fastest way to make money.

Penny stocks are typically shares of publicly traded companies that are valued under $10 – $5 per share. A lot of penny stocks trades over the counter which makes them quite risky, however, there are some penny stocks that are listed in the NASDAQ and NYSE.

The advantages of penny stocks include their unique tendency and potential to bring in mind-blowing returns because they are mostly stocks of small-cap companies with huge growth potentials.

Nonetheless, it is not without its negatives. One of the disadvantages of investing in/trading penny stocks is that it is a highly risky investment, especially those that trade over the counter (OTC penny stocks).

Because of how much it costs to own a share of such companies and their growth potential, it is one of the best small investments for high-reward-seeking investors with little money.

3. Exchange Traded Funds

An exchange-traded fund, commonly called ETF for short, is a collection of different types of or similar securities (such as stocks, bonds, and commodities) that can be bought or sold on an exchange.

ETFs typically track an index, sector, or specific investment strategies. For example, the SPDR S&P 500 ETF Trust (SPY) tracks the S&P 500 index and Ark’s Space Exploration & Innovation ETF (ARKX) tracks selected stocks in the Space sector.

There are many ETFs that are priced under $200 and even more priced under $100. Investing in a solid ETF will give you exposure to different stocks, bonds, and/or commodities, thereby reducing your risk through diversification.

Do you have strong reasons to believe that a particular sector is set to blow up and are unsure about which company to invest in?

With ETFs, you can simply just bet in favor of the sector in general, rather than picking one stock that might end up not being the winning pick.

Or perhaps you don’t want to go through the headache of actively managing your portfolio. ETFs are a great way to passively invest in diversified securities.

Check out these top three technology Indexes and their ETFs.

12 Other small investment options you should consider:

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