Investing in the stock market can help you build long-term wealth, but it can get expensive quickly.
Some stocks cost thousands of dollars per share, and you’ll need to invest in at least a dozen or so different stocks to create a diversified portfolio. At that rate, you could easily spend tens of thousands of dollars just to get started investing.
However, there are ways to invest without breaking the bank. With these three options, you can begin investing for $100 or less.
1. Contribute to your 401(k) or IRA
The 401(k) and IRA are some of the most hands-off ways to invest, because you don’t need to worry about picking stocks or deciding when to buy or sell. You could also choose to contribute to a target-date fund through your 401(k) or IRA for an even more hands-off experience. With a target-date fund, you simply choose the year you plan to retire, and the fund will adjust your investment allocation accordingly.
Investing questions:How to get started in 6 steps
Is buying cryptocurrency investing or gambling?:Here’s how to tell the difference
Also, when you invest in a 401(k) or IRA, you can contribute as much or as little as you want. If you only have a few dollars to spare each week, that’s OK — you can invest whatever you can afford. You can also set up your account so that you’re contributing a specific amount every week or month, or with each paycheck….