HOW TO TURN $100 INTO $1000 (6 BEST WAYS)

Summary

In this video, Graham discusses alternative ways to invest $100 for immediate returns rather than long-term passive income. He suggests investing in education with books like 'Think and Grow Rich' and 'How to Win Friends and Influence People', exploring individual stocks for experience, starting small businesses, flipping items for profit, considering high-risk cryptocurrency investments, and utilizing promotional offers for freebies or bonuses. The focus is on learning and growing wealth through practical experience and smart investments.

Takeaways

• 💼 Invest in education with books like 'Think and Grow Rich', 'How to Win Friends and Influence People', 'The 4-Hour Work Week', and 'Your Money or Your Life'.
• 📈 Consider investing in individual stocks for a potentially higher ROI compared to index funds, especially with a small investment like $100.
• 🌱 Start a small business with your $100, such as lawn care, to gain experience and potentially grow your investment.
• 🔄 Explore item flipping as a method to turn a small investment into a larger one by trading up in value.
• 💰 Look into cryptocurrency investments for high-risk, high-reward potential, but be aware of the possibility of losing your entire investment.
• 🎁 Take advantage of promotional offers for free items or services as a way to grow your $100 into more valuable assets.
• 📚 Reading books can provide valuable knowledge that can lead to wealth attraction and efficient work practices.
• 🏆 The video emphasizes the importance of gaining real-world experience in managing emotions and evaluating companies when investing.
• 🌐 Utilize free resources like YouTube, Reddit, CNBC, and CNN to educate yourself on investing and business strategies.
• 💡 Creativity is key when starting a business with a small investment; think outside the box for services you can offer.
• 📊 The video suggests that the experience gained from investing $100 wisely can be invaluable for future financial decisions.

Q & A

What is the main idea of the video?

The main idea of the video is to discuss alternative ways to invest $100 immediately for potentially higher returns rather than the traditional long-term investment in a broad Index Fund.

Why does the speaker suggest not investing $100 in a broad Index Fund?

The speaker suggests not investing in a broad Index Fund because earning 8% on $100 is not likely to result in a life-changing amount of money and there are strategies that could provide a higher return on investment more quickly.

What is the first book recommendation in the video for investing in oneself?

The first book recommendation is 'Think and Grow Rich' by Napoleon Hill, which is credited for helping the speaker become who he is today.

How does the speaker feel about the common advice to 'invest in yourself'?

The speaker initially dislikes the advice to 'invest in yourself' as it's often generic and comes from people selling expensive programs, but he acknowledges that good education can significantly increase one's earning potential.

What is the second book suggested in the video for improving personal skills?

The second book suggested is 'How to Win Friends and Influence People' by Dale Carnegie, which helps in understanding others' perspectives and improving communication skills.

Why does the speaker recommend buying individual stocks with $100?

The speaker recommends buying individual stocks because it offers a chance for higher returns and a real-world experience in managing emotions, evaluating companies, and understanding market fundamentals.

What is an example of a small business the speaker suggests starting with $100?

The speaker suggests starting a lawn care business by buying lawn equipment and offering services to neighbors as an example of a small business that can be started with $100.

How does the speaker relate Warren Buffett's early business to the concept of starting a small business with $100?

The speaker relates Warren Buffett's early business of buying a pinball machine and setting it up in a barber shop to the idea of starting a small business with a small investment, showing that such strategies can be successful.

What is the concept of 'flipping items' as discussed in the video?

The concept of 'flipping items' is to start with a low-value item, such as a paperclip, and trade it up for items of increasing value, eventually leading to a significant profit.

Why is investing in cryptocurrency described as the riskiest option in the video?

Investing in cryptocurrency is described as the riskiest option because it has a high potential for loss but also a high potential for significant returns, making it a high-risk, high-reward investment.

What is the sixth suggestion the speaker gives for investing $100?

The sixth suggestion is to use the $100 to take advantage of promotional offers for free stuff or sign-up bonuses, which can provide free money or items for trying out new services or products.

What is the speaker's overall goal for someone investing $100 according to the video?

The speaker's overall goal is for the investor to gain valuable experience and knowledge that will likely lead to making more money in the long term, rather than just hoping for a quick return.

Outlines

00:00

💼 Investing $100 for Maximum ROI

The speaker begins by addressing the audience, expressing a desire to discuss alternative ways to invest a mere $100 with the aim of maximizing returns. They acknowledge their previous video on achieving passive income but suggest a more impatient approach this time. The speaker emphasizes that while $100 may not seem substantial, it can be the starting point for learning investment strategies that scale with more capital. They also make a request for viewers to like the video to support the channel and signal the type of content they prefer. The speaker then dismisses the common advice of investing in index funds for an 8% return, arguing for more aggressive strategies to achieve higher returns.

05:00

📚 Prioritizing Education as an Investment

The speaker advocates for investing in education as the first step, suggesting that it can lead to significant financial gains. They critique the common yet vague advice to 'invest in yourself' and instead recommend specific books that can provide valuable knowledge for under $100. The books recommended are 'Think and Grow Rich' by Napoleon Hill, 'How to Win Friends and Influence People' by Dale Carnegie, 'The 4-Hour Work Week' by Timothy Ferris, and 'Your Money or Your Life' by Vicki Robin. The speaker highlights the importance of these books in developing wealth-attracting habits, communication skills, efficient work practices, and financial independence.

10:01

📈 Exploring the Stock Market with $100

The speaker recommends investing the $100 in the stock market, specifically in individual stocks rather than index funds, to gain practical experience and potentially higher returns. They acknowledge the risks but argue that with only $100, the stakes are lower and the learning experience is invaluable. The speaker suggests using a free stock trading platform to buy fractional shares and to research companies one uses daily. They also encourage viewers to use free resources to educate themselves about investing and to manage their emotions while trading.

Keywords

💡Passive Income

Passive income refers to earnings derived from a rental property, dividends, interest, or other sources where little to no effort is required to maintain it. In the video, the speaker initially discusses passive income but then shifts to focus on strategies that might yield quicker returns, implying that traditional passive income methods might be slower.

💡Invest

To invest means to allocate money with the expectation of generating an income or profit. The video centers around how to best invest a small amount of money, $100, in various ways to maximize potential returns, including buying books, individual stocks, and starting small businesses.

💡Index Fund

An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, like the S&P 500. The speaker mentions index funds as a traditional long-term investment strategy but suggests that for a small investment of $100, the returns might be too slow.

💡Return on Investment (ROI)

ROI is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. The video emphasizes strategies that offer higher ROI and faster returns than traditional index fund investments.

💡Education

Education in the video is discussed as an investment in oneself. The speaker recommends buying books as a way to gain knowledge that can lead to wealth attraction. This is exemplified by the recommendation to buy 'Think and Grow Rich' and other personal development books.

💡Stock Market

The stock market is a platform where buyers and sellers trade company stocks. The video suggests investing in individual stocks as a way to gain real-world experience and potentially higher returns than traditional index funds for a small investment.

💡Lottery Ticket

A lottery ticket is used metaphorically in the video to illustrate the idea of seeking high-risk, high-reward investments. The speaker jokingly suggests buying a lottery ticket but then dismisses it in favor of more practical strategies.

💡Small Business

Starting a small business is presented as a viable strategy for making money with a $100 investment. The video gives the example of buying a lawn mower and offering lawn care services, which is a common way to turn a small investment into a profitable business.

💡Flipping Items

Flipping items involves buying goods at a low price and selling them for a profit. The video describes this as a potential way to turn $100 into more significant capital, mentioning platforms like Craigslist and the story of a woman who flipped a bobby pin into a trailer cabin.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security. The video presents investing in cryptocurrency as a high-risk, high-reward strategy, noting the potential for significant gains or losses.

💡Promotional Offers

Promotional offers are incentives provided by companies to attract customers. The video suggests using $100 to take advantage of these offers as a way to get free stuff or money, which can then be reinvested or used to generate more income.

Highlights

Investing $100 requires a different approach than aiming for long-term passive income.

Investing in education is a valuable use of $100, with recommendations for specific books.

Think and Grow Rich by Napoleon Hill is suggested for personal development.

How to Win Friends and Influence People by Dale Carnegie helps with communication and collaboration.

The 4-Hour Work Week by Timothy Ferris encourages efficient work and time valuation.

Your Money or Your Life by Vicki Robin introduces financial independence concepts.

Investing in the stock market with $100 is recommended over an index fund for faster returns.

Buying individual stocks can provide real-world experience in managing emotions and evaluating companies.

Starting a small business with $100, like lawn care, can lead to quick returns.

Flipping items, like trading up from a paperclip, is a potential way to grow $100.

Investing in cryptocurrency with $100 carries high risk but also high reward potential.

Promotional offers can provide free money or items, which can be a low-effort way to grow $100.

The goal of investing $100 should be learning and long-term growth, not just short-term gains.

Each investment strategy comes with a lesson that can be applied in the future.

The experience gained from investing $100 is invaluable for future financial decisions.

Transcripts

what's up Graham it's guys here so the

other week I posted a video about how to

make a $100 a day in passive income but

I'll be honest most of that video

assumes a longterm investment consistent

work and slowly building up to an amount

that would actually one day lead you to

making $100 a day but now I think we

should take the opposite approach

because I'm feeling impatient and

instead of focusing on something that

might take you potentially decades to

work towards we should flip the script

and talk about the best ways that you

could begin investing $100 right now

with the expectation of eventually

making a as much money as possible my

thinking is this most likely $100 is an

amount that almost everyone watching

this video has access to so it's worth

going into the best ways that you could

invest that money immediately in such a

way that nearly anyone could do as soon

as this video is over and even though

$100 might not seem like a lot of money

initially it is possible to replicate

some of these strategies whether you

have $1,000 $10,000 or even $100,000

because at the end of the day these

strategies don't change so if you can

get a good grasp on how to invest $100

right now that will be money very well

spent but first I got a huge favor to

ask of you there is a lot of work that

goes into consistently posting three

videos like this every single week on

the channel so if you appreciate them or

find them even remotely helpful just do

me a huge favor and destroy the like

button for the YouTube algorithm that's

it it's totally free to do it helps up

my channel tremendously and it gives me

a good indication of the types of videos

you want to see more of so thank you

guys so much for doing that and with

that said let's get into the video all

right so let's just get this out of the

way this is going to be one of the few

videos where I don't tell you to invest

$100 in a broad Index Fund while you sit

back and collect that sweet sweet 8%

return because here's the thing even

though I'm a huge proponent of the index

fund strategy the reality is earning 8%

on $100 is not going to turn itself into

a life-changing amount of money there

are better strategies out there that

will give you a much higher Roi and a

much faster return which is why I'd

recommend that you buy a lottery ticket

just kidding if a $100 is all that you

have to invest and you know you one day

want to be rolling around in money the

first thing that I would buy is educ

now I've actually grown to really

dislike videos like this which tell you

to invest in yourself because it's

usually the most generic garbage advice

out there coming from someone who wants

to sell you a

$997 program but the truth is good

education can actually make you a

significant amount of money and you can

really buy yourself pretty much

everything you need to know for well

under $100 and these are my

recommendations the first thing I would

do is go and buy the book Think and Grow

Rich by Napoleon Hill this is probably

the first book that I read myself

covered to cover that wasn't for a

school project or Goosebumps and I got

to say I absolutely credit this book for

helping me become who I am today this

book literally gives you the blueprint

of being the type of person who attracts

wealth with solid actionable tips the

entire time plus the 1937 version of

this book is now considered public

domain meaning it's available for free

if you want to read it online so I'll

link to it down below in the description

for anyone who wants to give it a shot

now the second book that I would

recommend is how to un Friends and

Influence People by Dill Carnegie the

reality is no matter who you are what

you want to do on some level you're

always going to be working with or

collaborating with other people and this

book really helps you understand other

people's perspectives while being a

better Communicator at the exact same

time plus there's also some free

audiobook options on YouTube so there's

really no reason not to try this then

the third book I would go and read is

the 4-Hour Work Week by Timothy Ferris

this book really gets you thinking in

terms of how to accurately value your

time how to work as efficiently as

possible and how to maximize how much

money you make so go ahead buy it read

it and at the very least it's going to

make you think outside the box and

finally fourth go and get the book your

life or your money by Vicky Robin for me

this is really one of the first

introductions I ever got to the idea of

financial Independence because this

really helps put it in perspective in

terms of how much our time is valued and

how we should evaluate our expenses in

terms of hours worked and not dollars

spent it really helps paint a different

picture that we should align our

spending in ways that we find the most

valuable to us like of course smashing

the like button for the YouTube

algorithm okay but seriously all four of

those books should easily cost you less

than $50 and I promise if you actually

go through and read all of them it will

be impossible that these books don't pay

for themselves a 100 times over over the

next 10 years then after that the second

investment that you can make with $100

is within the stock market again I know

it's going to sound like I've been taken

over by an alien for saying this but if

$100 is all you have to invest then most

likely you're best off buying individual

stocks now before everyone goes off on

me by saying but Graham you can't go and

get any meaningful returns in the stock

market with only $100 it's too risky

plus you should teaching good habits of

Buy and Hold Index Fund investing okay

fine just hear me out no matter how you

slice it unless you luck into buying the

next GameStop or Dogecoin at the perfect

point in writing it to the moon

investing $100 is most likely not going

to make you a substantial amount of

money and even though I would recommend

an index fund for a consistent long-term

investment if your only goal is to

invest $100 as fast as possible with the

highest possible Roi buying individual

stocks has a lot of advantages that

initially aren't so obvious what you're

going to quickly realize is that it's

one thing to read about the theories of

what you should and shouldn't do when it

comes to investing but I promise you all

of that goes out the window as soon as

you have your own money at stake you're

going to find yourself panicking at the

slightest glimpse of your stock going

down at Price or getting a little bit

too greedy as soon as the stock goes up

faster than you anticipated or getting

impatient if your stock does nothing but

stay flat so I would treat that $100 as

your ticket to getting real world

experience in terms of managing your

emotions evaluating companies

understanding the fundamentals on your

own learning how swing trading Works

learning what all of these terms mean

and just getting a good education of

what it means to be an investor I

promise this is going to be a lesson

you'll be so glad to have had that

experience early on and investing $100

an hour you can make all of your

mistakes ahead of time is going to be a

lot more expensive than losing more

money later on when you're not as sure

of what you're doing now in terms of how

you could get started I would recommend

you use a free stock trading brokerage

that allows you to buy fractional shares

and then from there research the

companies that you use on on a daily

basis you can then utilize all the free

resources on YouTube Reddit CNBC CNN and

so on and absorb as much information as

you possibly can but either way no

matter what platform you want to invest

in with $100 in a weekend of your free

time you could learn so much information

out there that's really going to give

you a great understanding of how to

invest in the stock market then third if

your only goal with $100 is to try to

make as much money as possible as fast

as possible if you're willing to put in

the work you could use that $100 towards

starting a small business like buying la

care equipment and then of course

soliciting your neighbors for a job now

again part of me cringes at the advice

of telling people to go and buy a lawn

mower and go in mol lawn because it's

such cliche advice but the reality is

it's a really viable way to make money

and there's a reason why so many people

say to do this for example here's a used

lawn mower that you could buy for $80

where brand new it's $400 with tax then

you could go and charge $30 an hour for

your time and within an afternoon that

lawnmower is completely paid for and

everything else after that is gravy this

is a same same strategy that Warren

Buffett employed when he was a teenager

believe it or not his first business was

a $25 pinball machine that he set up in

a barber shop in 1946 when he was 17

years old this business was fairly

simple Warren Buffett bought the machine

and negotiated with the store owner his

friend fixed the machine and they split

the profit evenly within a week they had

enough money to go and buy a second

pinball machine and from there the

business grew a year later Warren

Buffett ended up selling that business

for $1,000 all from a $25 initial

investment so strategies like this can

absolutely work even though it's kind of

cheesy to go and think about investing

$100 into buying Lawn Care Equipment

just think outside the box and get

creative with what you have to offer

maybe it's car washes shoveling snow

mowing lawns cleaning windows just think

of things that you could do with $100

and then go for it and I got to say if

you put in the time there's no other

investment out there like this that will

pay for itself so many times over after

that fourth we have another one that's

been glamorized by so many YouTube and

Tik Tok videos and that would be

flipping items this is the the idea that

you could take something small like a

paperclip and slowly flip that into

something of value like a house and if

you think that's impossible then just

consider this there was a story a few

months ago about a woman who started out

with a bobby pin eventually traded up to

a vacuum cleaner to a snowboard to

headphones to camera equipment to a car

and eventually to a small trailer cabin

getting started with this is incredibly

easy too here in the US Craigslist

offers what's called a free section

where everything is a low cost of $0

just go and pick it up for free and from

there ready to sell it to someone else

for a profit like here's a totally free

granite counter in sync just pick it up

take some better pictures and relist it

somewhere else for $100 your initial

investment is going to go a long way in

terms of paying for the cost of Labor

and gas to go and pick it up and

everything after that is profit this

strategy was also a favorite of Gary ve

who had talked Non-Stop about this a few

years ago as a way to make money for

absolutely free and the entire point of

this was that almost anyone has access

to make it work as long as you're

willing to put in the time plus it's

going to give you a really valuable

experience in terms of learning how to

Value an item how to Market a product

how to work with other people and how to

negotiate so you get a fair price for

what you have to offer then if you want

to take this up a notch you could also

buy items on eBay that you know are

worth more money that you could then

relist and sell later for a profit now

even though you're going to have to be

mindful of eBay fees and shipping cost

if you know what to look for you can

absolutely make money doing this with as

little as a $100 after that number five

we have the riskiest of all of them the

one that would scare a lot of people and

that would be using $100 and invest in

cryptocurrency see here's the thing

anytime you invest your money there's

certainly a risk versus reward ratio

that you have to consider like basically

the amount of money that you could make

is directly correlated with the

likelihood that you might lose

everything for example throw $100 in an

index fund and the chances of you losing

any money over 20 years after inflation

is pretty much non-existent but put that

same investment into cryptocurrency and

you could either have thousands tens of

thousands or even millions of dollars or

absolutely nothing that's why the

greater the chance that you have of

losing money the more upside there is to

gain and that's where cryptocurrency

comes in even though I'm rather

optimistic about Bitcoin and ethereum

and $100 invested in Bitcoin in 2009

would now be worth over $50 million

today finding the next Bitcoin or any

other currency that would see a similar

sort of return is really just like a

shot in the dark but if you believe in a

particular project or you have one type

of currency that you want to invest $100

into it has the chance to do well even

though you have a risk of losing all of

it and for every great Bitcoin and

ethereum out there there's a bit connect

that went completely bust when it was

discovered it was a giant Ponzi gem

however if you do your research and

you're familiar with what's being

offered I'm sure over the next 10 years

this is really just the beginning even a

$100 investment in Dogecoin 2 years ago

would now be worth $10,000 today and

even though those ones are certainly

anomalies who knows what the future

holds so if you want a high-risk High

reward way of investing $100 while

getting the experience of researching

different projects along the way this is

certainly a viable option and lastly

number six you could use your $100 and

hustle promotional offers for free stuff

here's the thing businesses will often

give you free money or free stuff just

for signing up and trying them out it's

their way of paying for marketing except

instead of paying an Advertiser to run

an ad in front of you they just choose

to give you that money instead and then

it's a win-win scenario for everybody

this is something I still do all the

time if a bank account offers me a sign

up bonus or a new credit card gives me a

whole bunch of points or if a company

offers money back using a referral link

I go ahead and do it because in my

opinion it makes sense to get something

for free that I was planning on doing

anyway there's also plenty of examples

of other brokerages doing this you can

literally just go down the list getting

a whole bunch of free stocks in the

process for really just a few minutes of

your time and even though now we get

into the more than $100 category there

are so many other promotional offers out

there that could pay you a significant

amount of money for example signing up

for a credit card spending $500 in the

first three months and they will give

you back $200 on a credit card that cost

you absolutely nothing to open and keep

active I would do this all the time and

open up multiple credit cards s every

single year just because I wanted the

sign up bonus so if you have the spare

time and don't mind using $100 to take

advantage of some of these promotional

offers this could be a great way to

eventually build up to $1,000 at which

point you're going to have more money to

reinvest elsewhere and really at the end

of the day those six ways of investing

$100 should really be used towards

education which will stay with you for

the rest of your life or be used in such

a way that will grow to a larger amount

where it will eventually have more of an

impact the goal with this one shouldn't

necessarily be to pick the riskiest

thing you possibly can with the highest

upside and then hope for the best like

going and buying a lotto ticket but

instead spending it on something that

you could learn from that gives you a

great experience with a high likelihood

of making you more money long term all

of these options in my opinion would

give you a really great starting point

and really no matter what happens long

term to that $100 I promise you it's

going to be such a great experience that

will stay with you for the rest of your

life so with that said you guys thank

you so much for watching I really

appreciate it as always make sure to

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you guys so much for watching and until

next time