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Where to Invest €100 a Month?

mr.ilkevich

Is €100 a lot or a little?

Depends on how you look at it.

For Starbucks, it’s 20 lattes.
For an investor, it’s the first step toward financial independence.

Many people underestimate small amounts: “What can I possibly earn with a hundred?” That’s a mistake. It’s not about the amount — it’s about the habit. If you learn to invest €100 a month systematically, you’ll be able to invest €1,000 too. The mechanics are the same; only the number changes.

The main thing is to start. Now, down to business: where exactly.

The Simplest Option — the S&P 500 Index

If you want your money to work but don’t want to follow the news, earnings reports, and exchange rates every day, the best solution is the S&P 500 index.

It’s not just convenient. The world’s most successful investor, Warren Buffett, advises the same: in his will he instructed that 90% of the funds for his wife be put into an S&P 500 index fund. The man who beat the market believes most people shouldn’t even try to repeat it.

The S&P 500 tracks the 500 largest US companies: Apple, Microsoft, Google, Amazon, NVIDIA, Visa, and many others.
In effect, you’re buying a “slice” of the entire American economy — and of the global tech industry along with it.

What Should a European Investor Choose? VUAA — Vanguard S&P 500 UCITS ETF

This fund tracks the S&P 500 index.

When the American economy grows, so does your capital.

Why VUAA:

  • Managed by Vanguard — the company that essentially invented index investing
  • A fee of just 0.07% per year — one of the lowest on the market
  • Accumulating: dividends are reinvested automatically, so your capital grows on its own
  • European UCITS structure — built specifically for EU investors and tax-efficient for us

How to Start?

  1. Open a brokerage account. The most popular options for beginners are Revolut, Interactive Brokers, or my personal choice, Lightyear (the screen recording on the left is from there).
  2. Find the VUAA fund — Vanguard S&P 500 UCITS ETF (Acc).
  3. Invest €100 every month. Don’t try to “time the market” — just invest the same amount on the same day each month. Most brokers let you automate this with a recurring payment.

This approach is called DCA (Dollar-Cost Averaging) — averaging out your purchase price. You buy in good months and bad ones alike, and in the end your average price turns out reasonable without any attempt to predict the market.

The investor’s path: set it up once — it works for years

What NOT to Do

  • Don’t wait for the “perfect entry point.” While you wait for a dip, the market usually moves up without you.
  • Don’t sell in a panic. Drawdowns of 10–20% are a normal part of the journey. Those are exactly the months when your €100 buys more.
  • Don’t check your portfolio every day. You’re investing for years — daily noise only gets in the way.

Why It’s Reliable

  • The S&P 500 index has existed since 1957 and has historically returned about 10% a year on average — despite all the crises, wars, and pandemics
  • The index renews itself: weak companies drop out, strong ones take their place
  • It is the most popular tool of long-term investors worldwide

An Example

Investing €100 a month at an average return of 8% a year:

  • after 20 years you’ll have roughly €59,000 — of which you contributed only €24,000; the remaining €35,000 was earned by compound interest;
  • after 30 years — already around €149,000 with €36,000 invested.
Capital growth: €100 a month at 8% a year

Notice: in the second case you invested one and a half times more, yet your capital grew two and a half times. That is how time works in investing — and all it takes is discipline and patience.

The Investor’s Main Rule

Investing is not about speed — it’s about consistency.

It doesn’t matter whether you start with €50 or €100 — what matters is not stopping. Every month is one step forward.

VUAA is a reliable road you don’t need to run along. Just keep walking — and years from now you’ll be surprised how far you’ve come.

Bottom line:

The most straightforward way to start investing is to put €100 a month into VUAA (Vanguard S&P 500 UCITS ETF). Consistency and a long horizon will do more for you than any attempt to “outguess the market.”

Still want something more?

Join our investing club Invest Hub. We’ll open up a new world of investing and capital growth for you. The S&P 500 will secure you a decent retirement, but it won’t level up your knowledge enough to change your life. You can join the club here

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