How To Invest $100 In 2019 (Without Losing It All)
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How to invest $100 in 2019, without losing it all. That’s what I’m sharing with you guys here today, we’re going to go through a bunch of different things in chat about what are your best options? If you have $100, you have a small amount of money, what are your best options for actually investing that money?
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How do you go about doing it? How do you not lose all that money? How do you actually grow that money? All those sorts of things? Okay. Now, first off, some people might let some people have this frame of mind that they think if you only have $100, you only have a few $100 to your name, it’s not even worth investing. And I can just tell you, that’s a complete bunch of BS, okay?
It doesn’t matter if you have $100 $300 or $500 $700, it really doesn’t matter. It just matters that you start investing because if you don’t start, when do you start? Okay, do you start when you have 1000, then or is that still too small of an amount of money you start when you have 10,000? Or is that still too small of amount of money, you have to start at some particular time, and I’m just telling you, there are ways you can invest $100 and grow that money.
And it’s all about getting into good habits when you’re young, when you have small amounts of money and then staying in those good habits as the dollar amounts get bigger. Because what I started like my first couple investments, were like a couple 100 bucks, okay, like that’s where.
I started out and that’s how most people start out, they start out with a few 100 bucks and they start building from there and they start going and they start making that money into more money, they deposit more money into their accounts doing whatever it is they’re doing, whether it’s real estate stocks, it really doesn’t matter and they just continue to build up build up and build up Okay.
So you’ve got to start somewhere so hope you guys get a ton of value out of today’s video make sure you smash that thumbs up button let’s start getting into this guys so first off here as you notice we call this video how to invest $100 All right, there’s a big difference between investing money in gambling money and here’s how.
I kind of think about it all things have risk rate whether you’re starting a business investing money, it really doesn’t matter all things have some sort of risk here’s how I personally think about investing versus gambling Okay, and investment when you invest money you’re expecting to make money you expect the house odds to be with you okay.
I live in Las Vegas All right, this is a city built on gambling at the end of the day right? In Las Vegas you can go to any of those casinos and play any game in any of those casinos you know craps or the slot machine or blackjack it doesn’t matter the house will always win over the long term don’t matter what doesn’t matter how good of a craps player you are, how good of a blackjack player you are, unless you’re counting cards or something like that, right?
But no matter what the house will always win over the long term. Maybe you can win short term sometimes. But over the long term the house always always wins. Okay, so if you’re investing the house has to be with you. So think about it as you’re the casino rather than you’re the player if you’re investing money you got to think about.
Am I in the houses position? Okay, am I in the position that more than likely I’m gonna make money from this rather than lose money for this? If you’re gambling then you’re essentially the player at the casino Okay, and the house is against you, it doesn’t mean you can’t win, right?
Anybody can go down to a slot machine and you know, do the handle and also they win and they double their money or triple their money or make 10 times their money or whatever, right? Anybody can get lucky in the short term, but over the long term, you will lose that game Okay, in the long term you will lose that game if you’re gambling your money, the house is always against you.
Okay, so if you’re investing money, just think Are you the house or are you the player you want to always be the house Okay, so let’s think about some ways you could potentially invest money out there right? Let’s start going through some of these so real estate real estate not a realistic option for you at this particular time you got 100 bucks to your name, or let’s even pretend a few $100 like you’re not going to invest in real estate at this particular time.
It’s just not your you just don’t have enough money to kind of make things work right when your real estate investing a lot of times they want to lease 20% If not, you know more than 20% down on a property because it’s a real estate investment property at the day like you’re not buying any property with $100 down payment Okay, so real estate investing at this particular money is not really very possible.
Let’s put it that way. Okay. Gold in silver investing gold is like, man, I think I want to say Gold’s like 13 $100 an ounce or something like that. Silver’s pretty expensive. You won’t even be able to buy an ounce or gold or silver honestly to invest your money and also gold and silver aren’t the.
In my opinion the most realistic investments for people usually gold and silver are things people get into if they’re paranoid about the economy crashing or or they’re just trying to diversify some money around like if you are let’s say you have a lot of money let’s say you have you know, a $5 million or whatever.
And you have a lot of money in stocks or real estate and you’re like I want to diversify a little more maybe you put a few $100,000 in gold or silver and so you’re just diversify a little point times a lot of the you know, fund managers a lot of a lot of you know, high net worth individuals are advised to put five or 10% of their money essentially in gold or silver.
Okay, specifically gold. So, but at this particular money, like it’s not very realistic, so so real estate’s pretty much out at this point in time. Golden silver pretty much out, okay, you’re going to invest that money into a local business. Once again, this is another one that’s not very realistic when you have small amounts of money.
If you’re trying to invest in a local business, there’s something around you that you see, you know, starting to pop off or whatever. And you’re like, Man, that local business, they could use some more money, you go to them and you offer them $100 for an investment in their business, like they’re not going to take that money, okay?
They’re probably looking for 1000s of dollars or 10s of 1000s of dollars if they want to expand to another location or do another warehouse or whatever it is locally that you see is going on. And you think they could use some funds for that and you want to ownership stake in that. So local business, another one, that is pretty unrealistic for you.
Okay. Small cryptocurrencies, you could buy some small cryptocurrencies. Okay. I’m talking about some of the ones that aren’t the popular ones. Okay. I’m not talking about Bitcoin. I’m not talking about a theory. I’m not talking about Bitcoin, cash and some of these other ones, you know, Litecoin and some of these, right, I’m talking about small cryptocurrencies that most people have never, ever heard of in their life.
Okay, you could put money in some of those small kryptos. But in my personal opinion, with a lot of those super small ones, it’s not that maybe you can’t make money. It’s just at that point, you’re gambling. Okay, you’re betting on some super small cryptocurrency that’s super, super speculative. And you are gambling your money.
Okay, man, if you want to gamble your money, you can gamble your money, but this video is about investing. Okay, so small cryptocurrencies, although you could afford them. They’re so speculative that, you know, it’s basically gambling at the end of the day. Okay. Big cryptocurrencies? That’s a possibility.
But a lot of times, you can’t even afford a lot of the big cryptocurrencies, unless you buy like a fraction, I’m not sure who offers fractions, if you can buy a fraction of Bitcoin or something like that, from my understanding, you can’t do that with something like Robin Hood, I believe Robin Hood, you can now buy cryptocurrencies in most states out there.
But, you know, once again, you can’t even afford like to buy a Bitcoin or whatever bitcoins that I think $8,000. So obviously, unless you’re able to buy like a super small fraction of that, you can’t do that. aetherium usually over I believe the theory is over $100 right now, so a lot of the big kryptos You can’t even buy them. So once again, not really a realistic possibility for you at this particular time.
Okay, dividend stocks, dividend stocks, some are a possibility, but some are not some dividend stocks are actually going to be well over $100 per share depends like like apple, for instance, I think is 180 something dollars a share. So you wouldn’t even be able to buy one shares of a stock like apple, right?
So there’s some dividend stocks you can’t buy, but there are some that you could afford, okay? There are a lot of dividend stocks out there that pay great dividends that are priced under $100 a share. So you could actually buy one share or maybe even a few shares of that dividend stock. Okay, most stocks in the stock market are under $100 a share.
And that’s just most stocks in general, great companies. You know, a share price doesn’t really mean anything in relation to like, like how great a company is, or not great a company is like a stock could be $50 a share and be way better than a company that’s at $1,000 a share or something like that.
Okay, share price doesn’t really mean much. A lot of times companies actually split their shares. So smaller investors can continue to invest in those companies and their shares price don’t get too high. All right, you could also invest in growth stocks, okay, no, with growth stocks.
A lot of times in my personal opinion, they’re not the best stocks for beginners in the stock market, or someone that’s beginning to start investing to really get into and the reason being is, once again, it’s kind of like the small kryptos and whatnot, right?
You’re taking a lot of risk with a lot of the big growth stocks out there, you know, the stock that might be growing 4050 60% of the stock that just went IPO or something like that. super exciting. It’s growing super fast, but you’re taking on big, big risks there.
Okay. And a lot of times with some of these growth stocks, you don’t really know what you’re doing and you’re not really prepared for the type of volatility that happens in growth stocks, okay. The volatility that can happen in a growth stock can be insane.
Okay, we’ve seen the stocks, like even a great growth stock let’s talk about a great growth stock like one of the best growth stocks in the world in video Corp right in video Corporation in a matter of six months less than six months span when from a stock that was about $300 a share to a stock that was bottoming out in December like like from October like September October was around $300 a share.
It goes down to about $130 falls over 50% Okay, about 50 60% in literally a few months time Okay, that’s what can happen with growth stocks and that’s a great growth stock nevermind some of these other ones involved 6070 80% in a very quick amount of time okay.
So in my opinion, although growth stocks can be a great investment if you’re have experience for people that are just starting growth stocks usually aren’t the best option either. Okay, I just usually don’t advise those for people that are just getting started the volatility because a lot of times be too much in those okay. Penny stocks.
Penny stocks. Absolutely not. In my personal opinion, like most penny stocks are basically a scam at the end of the day. A penny stock is a stock that’s basically been listed on a market for a long time. And it’s basically almost no business model underneath is even 100 lying there.
When you buy into a stock you’re buying into an underlying business. Well, the problem is a lot of these penny stocks are so long Like, you know, OTC exchanges, or Pink Sheets or something like that. And there’s really no underlying business model that’s even representative in that penny stock, you basically just once again gambling your money.
And if you’re going to do something like that, like honestly, the odds are better for you to go down the strip and play craps or something like that, like, that’s just the truth with those penny stocks. Okay, so once again, horrible investment, because there’s not even an underlying business and almost all of those, okay, you could start your own business.
And although I’m all for starting your own business, and entrepreneurship and starting a side business and getting, you know, something going on the side, with 100 bucks, it is really difficult, not impossible, but really, really difficult. I mean, a lot of times your business licenses are more than 100 bucks.
Okay, usually, to start most businesses, you need at least $500 to $1,000 to comfortably start most businesses out there. I know when I started my real estate marketing company in end of 2015, I started that business with about $5,000 Now that was a more expensive business to start, because I had to buy a drone a very expensive drone, I had to buy a very expensive DSLR and things like that, so I had to buy some very expensive equipment.
So not all businesses are going to cost you $5,000 to start you can start a small business for $502,000 or 100 bucks, it’s not impossible, but pretty dang close to start a business for $100 is pretty unrealistic. Okay, so I love starting your own business, I love getting your thing going. But with 100 bucks as a really really difficult thing. So not so realistic.
And you can also put your money in something like a high yield savings account. However, with the high yield savings account it’s I don’t even really count it investing. I count it like trying to keep up with inflation with a high yield savings account and you’re maybe getting like 2% on your money and the great thing about.
That is you’re basically taking no risk the government guarantees it but on the flip side that’s another reason why it’s not really investing to put your money in a savings account because if you’re investing you’re taking some level of risk, but you know to get 2% a year or 2.5% or something like that, like you’re basically just keeping up with inflation at the end of the day you’re not really doing anything.
I mean I give it you go around to your grocery store. I bet you almost everything you buy got 2% more expensive over the past year go to the gas station I bet you gas is at least 2% more expensive this year than it was last year do those sorts of things guys so in my personal opinion here like the best way to kind of go the most realistic way if you got 100 bucks is honestly dividend stocks at the end of the day.
Okay, so now let’s chat a little bit more about dividend stocks and I’m going to kind of explain to you guys like how you could do it how you could do it safely and kind of the ways you want to think about it all right already guys. So now that we found our best option for investing our $100 How do we go about doing that Okay.
So once again we’re sticking to investing in dividend paying stocks This is actually how I got started in the stock market I think it’s a phenomenal way to kind of focus in your first few months in the market or your first year so like on dividend stocks more than other stocks out there. Okay, so dividend stocks is one we picked so first thing you want to do is you’re going to want to set up a robin hood account okay.
Robin Hood is an app where basically you can place trades for free it is a phenomenal thing like when I first started in the stock market like every trade I place was like $20 like it was insane so if you are investing a smaller amount of money like.
I was like you were getting absolutely destroyed by basically the Trade Commission’s okay now you can set it up with someone else but almost everybody else charges TD Ameritrade and E trade and Scottrade and fidelity and all these other companies you know they charge so if you’ve got a big amount of money you can definitely go to one of those but if you’ve got a small amount of money like without question like.
Robin Hood you’re you’re pretty much your only an option by far your best option because you don’t want to get you all your money basically taken by all those Trade Commission’s Okay, so you set up a robin hood account, you deposit your $100 in basically just let it sit there for now. And then you go ahead on to step two and you learn how to pick stocks. Okay.
There’s a phenomenal book, I would highly recommend very inexpensive book. It’s called the Intelligent Investor. I think that book is phenomenal. That’s actually the book I got started with. That’s a book you know, Warren Buffett talks about all the time. There’s also another phenomenal book, I believe it’s called the Little Book of Common Sense investing or something like that.
I read that very early on that’s a phenomenal book as well. I’ve written a book in the past that’s on Amazon, you if you want to check out that that goes into everything that I personally look for in picking stocks. But basically you’ll find a book that you can kind of read or multiple books.
It doesn’t have to be just one a lot of times when you start now read a few different books and kind of figure out what’s the best plan for you and learn how to pick stocks learn, you know what to look for in stocks when you’re researching all those sorts of things. Okay, once you have done that, then you should feel pretty confident yourself used to say okay, now we can start actually fully researching some stocks.
What you’re going to want to do is just google s&p 500 stocks, alright, Google that find s&p 500 stocks, find stocks that are $100 or less per share in that also pay a dividend. You can find out all the information on something like Yahoo Finance, okay, start going through those ticker symbols and find ones like you might have some interest in looking into you say, oh, oh, there’s Pepsi here.
Oh, you know, Pepsi seems interesting. Let me look into Pepsi Corporation. Okay. There’s a john deere Oh, john deere seems interesting. Let me look into those companies or things like that, okay, so just go stock by stock in the s&p 500 and start researching these.
And you know, start reading the reports, the 10, ks 10 Q’s and things like that and get into good habits early A lot of people don’t give the care to the money because it’s a smaller amount of money. When they first get started, I’m telling you, bad habits are hard to break getting good habits right off the bat in your.
First year of investing, and it’s gonna set you up so much better for down the road, get used to reading 10 Ks get used to reading 10 Q’s get used to listen to conference calls. And if you if you can’t bear that stuff, then you shouldn’t really be investing in the stock market.
Just put your money in an index fund or something like that, which is perfectly fine. But in terms of picking individual stocks, you’ve got to really like enjoy it or be able to put up with you know, reading a 10k or 10 Q, listen to conference calls and things like that, okay? That’s the real research work behind investing.
That’s the real work toward investing. Okay, if it was so easy, everybody would just be picking stocks, right? It’s not easy, you got to do all that research work and not everybody wants to do that. Let’s be just completely honest with ourselves. Okay.
So once you fully research you know, whatever s&p 500 stocks you got, pick the best stock you found and go ahead and buy that so you found you know, Coca Cola and you like Coca Cola, that’s the one I want to put my money in, I feel comfortable with that business model. I like where it’s going I like the dividend they pay blah, blah blah, you’ve researched it fully, you’re like.
I’m gonna buy Coca Cola stock awesome, you go ahead and you buy that one stock you put you know however much money you basically can and the maximum of money you can put into it which you know, in your case $100 you buy as many shares as possible in that’s your one stock for now.
Now, obviously as you get more and more money, you’ll want to diversify your money more around once you get $1,000 $10,000 100,000 you get a little more diversified you will more and more stocks as time goes on but when you’re first starting like you got 100 bucks in the market like just stick it in the best s&p.
500 dividend stock that you personally found Okay, number five, you want to keep up with news around that stock so whatever stock it is you bought whatever stock you picked out there don’t just buy it and then just like like never pay attention to it again like every week at least once a week pay attention like who wrote some articles about that stock why that stocks a good stock that stock You know.
It doesn’t mean you have to make judgments off of what they said but it’s just cool to kind of listen to did the company announced any earnings that we did they announced that anything in general new product new service just kind of pay attention to what’s going on? Was there a lawsuit that was involved with that stock looking at all these sorts of things guys.
It’s you have to always keep up with what’s going on with your stocks and stocks in the market in general, especially as you get you know, more and more money in the market. You want to keep up with everything that’s kind of going on, especially your stocks, this is a real work behind it. Okay, the real work behind investing in stocks is researching companies and then keeping up to date with them.
That’s the really the only work you have, you know, basically as an investor, you research companies and you you keep up with them once you invest in them. That’s your real work and that’s when you start getting the payoff Okay, so keep up with the news around it number six research more stocks.
Okay, so once you’ve found that one stock I doubt that’s going to be the only stock you ever buy in your life. Right. So next is research some more stocks go through that s&p 500 list again, go through the dividend stocks, look for the next dividend stock you want to put your money in and I can bet you money that more than likely the second or third dividend stock you find you actually going to like 10 times more than that first one you bought.
Okay, that generally happens you you you find a stock, your first investment you think it’s so great. And then a few weeks later a few months later find this other stock, you’re like, Dude, why did I buy that other stock? That was really stupid idea, I should be buying this stock over here. This one is way better stock, okay.
So always be researching more and more stocks, I can tell you from my perspective, and obviously I have a you know, a ton of money, most of my wealth, like is tied up in the stock market, right? So I’m constantly researching new companies, I’m constantly finding, I’m constantly like basically hunting the next stock that is gonna make me double my money or triple my money over the next 510 years. I’m constantly on the hunt for it.
Okay, no different than you know, back in the day, when you had a hunt for your own food, right? You want to constantly be hunting for the next animal to co hunt, right? I’m constantly hunting for the next great stock, that’s going to make me a bunch of money in the stock market.
Okay, so you’re constantly going to be researching more and more stocks, I bet you you’re going to find some way better stocks than what you already have your money in. Okay, number seven, then you’re going to hopefully deposit more money over into the future hopefully you’re making money from your job or you have your own business or side income streams or whatever and you’re not spending.
All your money hopefully you’re able to deposit another $100 in the market or maybe $200 this time and build up a little bit more Okay, and then you buy a second stock. So now you have two stocks in the market and you’re able to kind of keep track of what’s going on with this stock what’s going on with this stock sure this stocks up.
A bunch of maybe sell a little bit and put a little more in this stock that’s kind of down a bit things like that, okay, you start kind of you know, actually starting to run a portfolio of stocks now that you’re you’re kind of getting a little more experience a little more money in the market, which are very key thing is to kind of learn over time, okay, how to actually run a portfolio, it’s going to help you.
If you’re going to run a portfolio with $1,000 in it, you can probably run a portfolio with $10,000 in it. If you get to successfully run a portfolio with $10,000 in it. You can probably successfully run a portfolio with $100,000 in it, okay? those skills are adaptable don’t matter if it’s 1000 bucks, 10,000 bucks or $100,000.
Okay, so you go in and buy another stock and then you want to constantly be researching more and more stocks and then you can start looking into non dividend stocks. Okay, then at that point once you’ve got some experience maybe you’ve been the market for six months, maybe a year, maybe a year and a half depending on you know what, what makes you feel comfortable.
Then you can start actually researching some stocks that don’t pay dividends so you’re not relying on the dividend income, maybe research some growth stocks if you feel comfortable enough to kind of start getting into that realm now. And you know, once again always stay in good habits always look for the companies that have the great balance sheets that are making profits on the bottom line and things.
Like that making those your biggest investments once you believe in the most and once you understand the most stable some of those good habits, but you can research some great companies that are non dividend stocks, most of the stocks I own don’t pay dividends nowadays but I’ve been in the stock market for over 10 years so that’s kind of natural it’s that way but.
I do still own some stocks that pay dividends but I think dividend stocks are honestly the best way if you’re a beginner in the market to kind of start getting involved guys so hope you enjoy this day hope you learned a lot from this and kind of in your in my opinion your best way of investing $100 in the whole world basically that’s my personal opinion.
You know other people might have different opinions but in my personal opinion in just kind of seeing what I’ve done and seeing what others have done dividend stocks are always the best bet when you have a really really small amount of money and you’re just starting out guys so but it was let me know your opinion in the comment section.
Let me know if you guys got a lot of value out of today’s video. I would love to hear from you guys in that comment section. As always, those comments mean a ton. Make sure you hit that thumbs up button if you enjoyed today’s video. Thank you for watching and have a great day.