How to Start Investing with Just $100 a Month
$100/month invested from age 25 to 65 at 7% average return grows to over $262,000. Starting late is better than never starting — and starting small is fine.
Financial Writer
Step 1: Open a Roth IRA
If you have earned income and earn under $161,000 (single) or $240,000 (married) in 2026, a Roth IRA is your best first investment account. Contributions are after-tax, but growth and qualified withdrawals are completely tax-free.
Step 2: Choose Your Investment
With $100/month, don't overthink it. Put it all in a single total stock market index fund or a target-date retirement fund. Complexity doesn't improve returns at this stage — consistency does.
Step 3: Automate
Set up an automatic monthly transfer from your bank to your brokerage. Make it automatic so you never have to decide to invest — it just happens. This removes emotion from the equation.
Step 4: Increase Over Time
Every time you get a raise, increase your investment amount by half of the raise. If you get a $200/month raise, add $100 to your investments. You'll never feel the lifestyle reduction, but the compound growth is dramatic over decades.
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