There was a whole lot of financial tom-fuckery happening as recently as 50 years ago. Women weren’t allowed to open credit cards, banks actively denied home and business loans to people of color (this still happens), not to mention YOU COULDN’T EVEN PAY TO GET A FULL ROTISSERIE CHICKEN DELIVERED TO YOUR DOORSTEP FROM YOUR HANDHELD INTERWEBS DEVICE. IT WAS BASICALLY THE FINANCIAL DARK AGES.

Around this time, it also wasn’t all that great to be a new or small investor. (Investment funds weren’t transparent, people didn’t understand the impact of fees and active management, Wall Street hustlers were basically snorting powdered rhino horn off the backs of investors who didn’t know better.)

But hey! It’s 2019 babay!! Our planet’s been reduced to a clump of flash paper and we’ve replaced human interaction with memes BUT there ARE good, affordable investing options, where we can get started with a few dollars.

So, let’s talk about how to get started investing with $100.


1) Buy an index mutual fund at Charles Schwab or Fidelity


A mutual fund is a big ol’ basket of some other type of investment, such as stocks or bonds. (Want more info? Read this.)

An index mutual fund is an easy, affordable way to get broad exposure to the stock, bond, or real estate markets (through what are called REITs) at a very low cost.

For example, buy FZROX at Fidelity or SWTSX at Charles Schwab and voila! You have a portfolio of 2,500+ stocks in the United States.*

To be clear: 1) Open an account at Fidelity or Charles Schwab. 2) Send in money from your checking account. 3) Buy the fund.

Alternatively, buy FNILX at Fidelity or SWPPX at Charles Schwab; you’re buying into the 500 leading companies in the United States. BEHOLD! You’ve now got the same strategy that legendary investor, Warren Buffet, recommended to LeBron James.

These funds have a) no transaction charges b) no minimum and c) no or extremely low expense ratios. You can get started with as little money as you have available, and worry not about getting bamboozled with damaging fees.


Pro Tip: If you’re building your wealth for the long-term, buy one of these index mutual funds within a retirement account, like a Roth IRA, Traditional IRA, or if you’re self-employed, a Solo 401(k). You can open one of these accounts, for free, at Fidelity or Charles Schwab. If you’re covered by a 401(k) or 403(b) at work, check to see if you have index fund options within your accounts! Investing within a 401(k) is absolutely investing!!

2) Buy a retirement-target date fund at Charles Schwab or Fidelity

A retirement-target date fund is a FUND that holds other FUNDS; specifically, it is a fund that holds stock index mutual funds and bond index mutual funds in a mix (called an “allocation”) appropriate for your stage in life. There’s a futuristic year, like 2055, listed in the title of these funds. For 2055 funds, have a look at FDEWX at Fidelity and SWYJX at Charles Schwab.

Here are the holdings in FDEWX, Fidelity Freedom Index 2055 Target Date Fund.


In the above example, this person with a far-off retirement date is invested in 90% stocks and 10% bonds using four index funds. As we move closer to 2055, this fund will shift into more bonds (a more conservative allocation).

You’re supposed to pick the year that approximately corresponds to your age-65 retirement year. This date DOES NOT INDICATE WHEN YOU GET TO QUIT YOUR JOB; it simply determines the mix of stocks and bonds (using mutual funds) that is appropriate for your age. Picking a sooner date will put you into a more conservative mix of investments.

Here’s the rub: Not all retirement-target date funds are created equal. Some target-date funds are made up of low-cost index funds (mama likey) and some are made of high-cost managed funds (mama no likey). At Fidelity, these are called the Fidelity Freedom Index Target Date Funds and at Charles Schwab they are called Schwab Target Index Funds. Here are the “tickers”:


RETIREMENT YEAR Fidelity Charles Schwab


Have access to something different? Don’t be shy, rip the damn buttons off that target-date fund’s shirt and take a peek at what’s inside. If you can’t find a breakdown via the bank’s website, I like to use Yahoo Finance. 

3) Use a robo-advisor like Ellevest, Betterment, or Wealthfront


Robo-advisors are investment management platforms that build you an investment strategy using index funds, not unlike the target-date funds that I mentioned above. But, you’d be paying more in fees.

I wrote a Whole Damn Thing on whether you should use Ellevest, or any robo-advisor. Read it.

Both Ellevest and Betterment have a minimum of $0. If you’re intrigued, give ‘er a spin. Using a robo-advisor is absolutely better than doing nothing.

Pro Tip: These services aren’t compatible with your 401(k) or other workplace retirement plan. In many circumstances, you’ll want to focus on filling up your workplace retirement first!

4) Buy a stock (or ETF) at Robinhood, or with a discount brokerage bank

Something wild in banking happened in the last few years: It is now free to buy a stock at my favorite brokerage banks, including Charles Schwab, Vanguard, and Fidelity. Similarly, you can buy a stock or ETF for free at Robinhood.

(It used to be the case that brokerage banks would charge a transaction fee between $5 and $10, and you had to buy “full” shares. This is hard to do when one share of Amazon costs $thousands. These fees are still charged by higher-cost banks.)

It is my preference to use a brokerage bank over Robinhood, although Robinhood’s interface is admittedly better. Here’s a TikTok and Instagram post on why I don’t like Robinhood.

I don’t think buying individual stocks on a trading app is a great long-term strategy for building out a Grown-Up Investment Strategy, but it’s fine for people who want to learn how to make stock transactions and play around a bit in the stock market. Just be aware that this shouldn’t be “it” for you. Soon, you’ll need to diversify your investments—see above strategies.

With both Robinhood, Charles Schwab, and Fidelity you can start with as little money as you’d like, because they allow you to buy fractional shares. So, pick a company or two that you think are essential to American and global life, companies that will grow over time and/or pay a good dividend, and get a feel for what it’s like to be an investor.

Just get started

The most important thing is to not hesitate. Get started. Get your hands dirty. Invest in your education, which includes by doing.

Babe Ruth had to swing his first baseball bat. Competitive eater Joey Chestnut had to eat his first hot dog. You need to make your first investment purchase. You can do this!

Invest in your education

WANT TO LEARN MORE ABOUT THESE OPTIONS, AND MORE? WANT TO BUILD OUT YOUR OWN BEAUTIFUL INVESTMENT PORTFOLIO, AND FEEL CONFIDENT AS HELL? I GOT YOU. Take my Invested Development virtual course; it’s 15 fun video lessons—one student called it “Netflix that makes you rich.”

No more feeling twisted by financial jargon. No more feeling like you should have “already learned this by now.” Time to take control and finally feel good about yourself and your money! Sign up for Invested Development here!


  1. Sara Adelle on July 29, 2019 at 2:24 pm

    Hey! Quick question, why Fidelity and Charles Schwab over Vanguard?

    • Dumpster Doggy on July 29, 2019 at 3:15 pm

      Hi there! All Vanguard mutual funds have either a $1,000 or $3,000 investing minimum. You could potentially do Vanguard ETFs, but you have to buy full shares, which means you might not get your whole $100 bucks invested, whereas with a mutual fund you can buy in with the full dollar amount. (This article is about investing $100). Also, Vanguard has a $20 account maintenance fee, which is too much if you’re only investing $100.

      • Sara Adelle on July 29, 2019 at 4:24 pm

        Awesome! Thanks. I did a little reading and it sounds like Fidelity offers zero fee index funds, which could be cool as well.

        • Dumpster Doggy on July 29, 2019 at 5:56 pm

          The first fund I mention in this article is a Fidelity zero-fee index fund.

      • Done by Forty on July 30, 2019 at 9:27 am

        Good point about the minimums with Vanguard. (I could be wrong but I think you can waive the $20 fee if you get electronic docs.)

        Thanks for putting this primer out there, friend. I really appreciate people who write in a way that actually educates & helps people starting out.

        • Dumpster Doggy on July 30, 2019 at 12:48 pm

          Thank you 🙂 And good to know!!