Best Way to Start Investing with $100: Gen Z & Millennials Get Ahead in 2025 – Complete Guide

Getting started with investing doesn’t require thousands of dollars or decades of experience. For Gen Z and Millennials in 2025, today’s digital tools, $100, and a little strategy can be the launchpad to financial independence. Whether you’re saving for a first home, building wealth to fight inflation, or future-proofing your career against economic shifts and AI disruption, understanding how to invest with limited funds is more important than ever.

Why Investing Early Matters – Especially Now

• Compound Growth: Turning small amounts into significant wealth over time.
• Inflation Protection: With 2025 inflation rates averaging 3.8% globally (IMF, 2025), holding cash means losing value every year.
• Job & Tech Trends: AI and remote work are reshaping incomes and job stability, making investing for passive income essential.

Step 1: Set Clear Financial Goals

Ask yourself:

• What am I investing for (emergency fund, home, retirement, travel)?
• What is my timeframe (1, 5, 10+ years)?
• How much risk can I honestly take?

Step 2: Choose the Best Investment Accounts

• Roth IRA: For those earning under $153,000 (single) or $228,000 (married) in 2025, a Roth IRA lets you invest after-tax dollars and enjoy tax-free growth – perfect for long-term Gen Z and Millennial investors.
• Taxable Brokerage Account: No contribution limits or withdrawal restrictions. Excellent for experimenting and short/medium-term goals.
• 401(k) or 403(b): If your employer offers a match, contribute enough to get the free money – even if it’s just your first $100.

Recommended Platforms (2025):

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

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Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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• Fidelity Spire: Designed for new investors, with zero-commission ETFs & stocks.
• Charles Schwab Starter Kit: Fractional shares, no minimums, easy mobile app.
• Acorns/Robinhood: For micro-investing and learning-by-doing, especially popular with under-30s.

Step 3: Select Smart, Beginner-Friendly Investments

With just $100 in 2025, focus on:

• Fractional Shares: Buy just $10 worth of Apple or Tesla, rather than whole shares.
• ETFs (Exchange Traded Funds): Instantly diversify into hundreds of companies. Top 2025 picks include S&P 500 ETFs (like VOO or SPY), and ESG (environmental, social, and governance) funds for sustainable investing.
• Robo-Advisors: Automate everything – platforms like SoFi Invest or Betterment will build and rebalance your diversified portfolio for you.

Actionable Example:
Want to start with $100? Open a Schwab account, buy worth of SCHD (dividend ETF for cash flow), of VXUS (international ETF), and into an emerging tech ETF like ARKK. Let compounding work for you!

Step 4: Avoid Common Beginner Mistakes

1. Trying to Get Rich Quick: TikTok and YouTube may hype meme stocks and crypto pumps, but most Gen Z and Millennial millionaires are consistent, diversified investors.
2. Ignoring Fees: Even a 1% annual fee can devour $40,000 over 40 years (Vanguard, 2025).
3. Investing Before Building an Emergency Fund: Save $500-$1,000 first to avoid dipping into investments after a car repair or layoff.

Step 5: Level Up with Continuous Learning & Tech Tools

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Best Apps for 2025:

• YNAB (You Need A Budget): Helps allocate every dollar, track investing habits.
• Empower (formerly Personal Capital): Total net worth tracking and expense monitoring.
• Fidelity Spire: Financial goal planner made for digital natives.
• Morningstar Investor: Research stocks, ETFs, and mutual funds with in-depth data.

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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Key Resource: Free online courses from Khan Academy – beginner-friendly, highly recommended.

Trending Topic: How AI & Remote Work Are Influencing Investments in 2025

With AI advancing rapidly and WFH jobs staying post-pandemic, entire sectors are being disrupted. As a 20-something or 30-something, consider these moves:

• Tech ETFs: Bet on automation and AI by investing in QQQ (top tech stocks) or BOTZ (robotics & AI ETF).
• REITs: Remote work means more people moving, and REITs (Real Estate Investment Trusts) offer a way to invest in the shifting property market without owning a home.
• Upskilling Budget: Set 10% of your discretionary funds towards tech courses or certifications to stay ahead of job market changes.

Real-World Example: Investing $100 a Month

It may sound small, but $100/month at 8% annual return grows to over $18,000 in 10 years and $156,000 in 30 years – perfect for Gen Z and Millennials with time on their side.

FAQs: Investing with $100 in 2025

Is $100 really enough to start?

Yes! Most major platforms now offer commission-free investing and fractional shares, so you can build a diversified portfolio from day one.

What if I lose money?

Investing always carries risk, but diverse ETFs and not putting all your money in one place reduces the odds. Invest only money you won’t need for immediate expenses.

Is crypto a smart first investment in 2025?

Crypto is volatile and best approached as a small part (less than 5-10%) of your portfolio, only after building a core stock/bond/ETF foundation.

How soon should I increase my investment?

As soon as you can comfortably afford it – automate transfers, aim for incremental increases as your income grows.

Next Steps: Put Your $100 to Work in 2025

1. Define why you want to invest – your goal is your “why.”
2. Choose a secure investment app or brokerage account.
3. Buy a mix of broad-market ETFs or index funds. Avoid “hot tips” and get-rich-quick schemes.
4. Learn continuously: follow financial news, take a free course, connect with a mentor, or join Gen Z/Millennial investing groups on Reddit or Discord.
5. Automate: Even $10 a week puts you on the path to wealth, thanks to the unmatched power of compounding in your 20s and 30s.

2025 is the perfect year to start investing. Don’t let analysis paralysis or limited funds hold you back – your future self will thank you.

Get a No Obligation Quote Today.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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