Everybody knows that it takes money to make money. But if you play your cards right, you can easily take a small initial investment and watch it grow tenfold. Here’s how to turn $100 into $1,000 with strategies you can start using today.
10 best ways to turn $100 into $1,000
Learning how to turn $100 into $1,000 is all about finding a strategy that works for you. Below are some common methods, but keep in mind that they vary in the time it takes to grow your wealth as well as in risk level.
1. Opening a high-yield savings account
A high-yield savings account is a risk-free way to grow your investment. Some of the best high-yield savings accounts offer interest rates as high as 5%. The catch is that it can take time for wealth to accumulate. If you deposit only $100 in an account with 5% interest, it will take 47 years to reach $1,000.
However, you can build wealth more quickly by making regular $100 deposits. Following this method, you would accumulate $6,931 in your account after five years, nearly $1,000 of which would be pure interest.
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2. Investing in stocks, bonds, crypto, and real estate
Investing has the potential to build wealth much faster than a savings account alone. The average rate of return on the U.S. stock market is 10%. Assuming you saw similar results in your portfolio, you’d see your money double every six or seven years. With stocks in particular, there’s no real minimum investment, and some brokers allow you to buy fractional shares of high-value stocks.
Just be mindful of the risk involved. The money you put in stocks, bonds, crypto, or other assets can be lost if the asset loses its value. That’s why it helps to build a diversified portfolio managed by professionals.
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3. Online selling
Why not use that $100 to start a business? At a minimum, you could start by buying and selling items on eBay. If you’re crafty, you could sell handmade goods on Etsy or launch your own e-commerce business.
Drop shipping has become another popular business model. This is an order fulfillment service where you’ll manage a portion of a company’s inventory and send packages to customers. In each of these options, you can choose your level of involvement, though you’ll have to regularly invest your time and energy to generate profits.
4. Blogging or vlogging
Share your knowledge with the world by starting a blog or vlog. Bloggers can monetize their content through affiliate marketing or by allowing advertisers to place ads on their websites.
YouTube allows vloggers to monetize content once they reach certain requirements, after which they pay $0.01 to $0.03 per view. Though it takes time to build wealth this way, the advantage is that you’ll earn passive income once your content is online and regularly getting views.
5. Opening a Roth IRA
A Roth IRA allows you to make contributions with after-tax dollars (meaning you pay tax before investing), and then make tax-free withdrawals after the IRA matures in five years. However, these vehicles are designed as retirement vehicles, which means you could face penalties for withdrawing money before age 59.5.
The good news is that IRAs offer a range of retirement vehicles, including stocks, bonds, and mutual funds. Thus, they provide a solid return on your investment, especially if you make regular contributions.
6. Freelancing and other side hustles
Want to learn how to turn $100 into $1,000? Get a side job. Many talented individuals find ways to freelance or take on a side hustle. Ridesharing and food delivery are common choices, but creative professionals might consider dabbling in copywriting, photography, or other outlets.
Web-based side hustles are ideal because you can accomplish a lot without ever leaving your couch. Just remember that the amount you receive from any side hustle or freelance work depends on what you put into it, so make sure to find a balance between your side hustle and your day job.
PRO TIP! Create additional income by doing surveys and playing games.
7. Affiliate marketing and promotion
In affiliate marketing, you’ll use your blog or social media channels to promote products from other companies. The company will pay you a commission for generating traffic for their website or driving product sales.
Affiliate marketing also provides an opportunity for passive income, since your marketing content will continue to drive traffic/sales after it’s published. The amount you receive can vary by the company, product, and work you put in. Amazon Associates, for instance, can earn anywhere from $100 to $25,000 per month, though the wide range highlights the variability of this income stream.
8. Online teaching
Online teaching is in high demand. If you have knowledge in a particular subject area, you might consider devising an online course.
Platforms such as Udemy and Teachable allow you to publish online courses and receive money based on the number of views. The amount varies by platform as well as by the popularity of your content. For best results, find a way to address a need felt by a specific audience.
If you have prior teaching experience, you might also consider online tutoring. By working with sites like Tutor.com or Chegg, you’ll be able to connect with students across the country without having to market your online content.
9. Peer-to-peer lending
Peer-to-peer lending networks allow you to lend money to other users and receive money back through interest payments. You can set your own interest rates, though most peer-to-peer lenders see between 5% and 10% on their investment.
Be cautious, as a $100 investment may not be sufficient to really get started with this method. And since peer-to-peer networks aren’t regulated in the same way as traditional lenders, there can be more risk involved. But it can still be a solid method for passive income.
10. Creating digital products
Digital creators can create products and sell them online. What kinds of products? Depending on your skill level, you can create anything from digital apps to blog content to digital photographs.
Your income will vary depending on the content you create and its demand. Digital photographs, for example, won’t generate much per purchase, but you can earn a passive income and accumulate wealth through sales volume.
Choose the method that’s right for you
For the industrious, there are lots of opportunities to make extra cash. These methods can show you how to turn $100 into $1,000 but keep in mind that no method will provide that kind of money overnight. If you ever do need cash fast and you’re stuck waiting on your next paycheck, consider using a cash advance app or MoneyLion InstacashSM. With no fees, interest, or credit requirements, Instacash is an easy way to take control of your finances.
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FAQ
Are there any specific skills or talents I can use to turn $100 into $1,000?
Get creative! What are you most passionate about? Teaching, writing, and photography can be your ticket to success. But even drop shipping or affiliate marketing takes minimal skill and investment.
How can I effectively budget and manage my expenses to reach the goal of turning $100 into $1,000?
The best way to reach your goal is to invest regularly — not just once. By building wealth over time, you’ll quickly reach your $1,000 goal.
How can I stay motivated and focused on the goal of turning $100 into $1,000 amidst challenges or setbacks?
Create some intermediary goals. Set a goal to reach the $250 mark, and then the $500 mark. These smaller goals will help you determine how well your strategy is working and motivate you to stay on course.
