If you had just $100, could you turn that into a sound investment? That’s exactly what Jeff Rose set out to discover for Good Financial Cents, asking me and 15 other financial pros our best strategy for this smaller sum. My advice is to avoid investments you don’t “get,” meaning you don’t understand the investment – no matter the amount. You should invest in what you know, and tread carefully into new waters.
Some people are surprised by thousands of dollars in variable annuity fees while others let their “investments” sit stagnant when they thought they’d be earning some nice interest. Stick with what you know, and learn about new types of investments risk-free before taking the plunge.
Your first $100 investment should be one that you like and understand. Passion goes a long way. If you love Pinkberry, consider buying stock in it (after you’ve researched it, of course). You can try diversifying later on. If you love a company, it has a much better chance of loving you back.
Find out more tips, such as avoiding gambling, late night infomercials, and taking big risks with promises that sound too good to be true. Even though $100 isn’t technically that much money, and you could probably stand to lose it, why lose even $100 when it could be your stepping stone to an investing future?
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