The 6 Best Ways to Invest Just $100 Per Month
The 6 Best Ways to Invest Just $100 Per Month
By Holly Johnson February 2020
The new year is the perfect time to ditch poor financial habits and pick up some new ones. Maybe you decided that this is the year you'll finally pay off high interest credit card debt, or perhaps you're using a budget for the first time in your life. Whatever your goals are, you probably know that it will take time and perseverance to get there.
But how should you invest your money? If you have an extra $100 per month to spare, there's more than one way to build wealth and finally get ahead.
We reached out to financial advisors to find out how they would invest an extra $100 per month in the new year, and here's what they said.
1. Bump up your 401(k) contributions
Colorado financial planner Mitchell Bloom of Bloom Wealth says your workplace 401(k) is a good place to start if your employer offers one, and particularly if you can qualify for an employer match. After all, an employer match you can qualify for is the closest thing to "free money" you'll ever receive at work, so you might as well take advantage.
You can strive to boost the percentage of your 401(k) contributions in order to funnel approximately $100 more into your account each month, but you may also be able to set aside a flat $100 in funds monthly if your workplace plan allows.
Either way, money in a 401(k) plan can grow tax-free and compound over time, and you won't have to pay taxes on distributions until you reach retirement age.
Also note that if you don't have a workplace retirement plan, all isn't lost.
Instead, you may want to "consider using a low-cost advisory firm like Betterment, where they will build a fully diversified globally allocated portfolio model with fractional shares so you can achieve diversification with a small investment amount," says Bloom.
2. Save $100 per month in a Roth IRA
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