Lately I've been thinking about something. Many people say you need millions to start investing, but that idea is actually quite risky. Looking at current prices, rent, food, and all kinds of living expenses are soaring, and your savings purchasing power is being eroded every day. Interestingly, for us small investors, saving up to one hundred thousand yuan is actually much easier than you might think, as long as you have some patience and a plan.

I think many people underestimate the power of ten thousand yuan. It’s not just a sum of money; it’s the seed to fight inflation and the starting point for making money work for you. The key isn’t how much principal you have, but whether you have the right mindset, choose the right potential targets, and give them enough time to grow.

First, let’s talk about bookkeeping—it's really important. You need to treat yourself like a company, clearly understanding your income and expenses, and squeezing out stable free cash flow. This is the confidence behind your investments and the foundation for making your ten thousand yuan grow. Never invest with living expenses; if the market turns bad, you’ll be forced to sell at a loss, and the losses will be bigger.

Next, find an investment method that suits you. For office workers, regularly investing in funds or ETFs is best, so you don’t have to watch the market every day, balancing work and life. Retirees can choose high-dividend assets to generate automatic cash flow. But if you’re a small investor with a hundred thousand yuan principal, first ask yourself: what problem do I want this money to solve? Do I want more pocket money each month, or do I want to accumulate more capital?

If you need monthly dividends, dividend-paying funds or high-yield ETFs are good choices. Many funds now pay dividends of 7-8%, so investing 100,000 yuan a year can yield 7,000-8,000 yuan, with 600-700 yuan per month to supplement daily expenses. But if your goal is more aggressive, like buying a phone or traveling abroad through investments, you might need a 30-40% return rate, which requires more flexible strategies like swing trading.

The advantage of small capital is flexibility. You can act like a nomad, investing wherever opportunities arise, entering and exiting without being affected by the market. Many platforms now have low thresholds for buying US stocks, indices, precious metals, and even cryptocurrencies, often with leverage to amplify gains. As long as you choose the right direction, using turnover to exchange for returns, you can quickly accumulate principal. Also, reinvesting your work income as new principal, and letting compound interest work, your assets will grow like a snowball. Properly increasing turnover and using leverage appropriately can accelerate wealth accumulation beyond expectations.

Different people are suited to different strategies. Steady-job small investors have time but slow principal growth, so they benefit most from compound interest, relying on dividend funds or high-yield ETFs to buy time. High-income groups like doctors and engineers, who are busy and can’t monitor the market constantly, are better off investing in index ETFs that track the market. Taiwan’s 0050 tracks the top 50 companies in Taiwan; the US’s SPY tracks the top 500 US companies. The advantage of these indices is automatic culling of weak stocks and keeping the strong ones. Over the long term, with enough time, returns are quite impressive. The S&P 500 has averaged an 8-10% return over the past 100 years. Compared to a 5% USD savings account, over ten years, $100 growing at 10% annually yields $236, while at 5%, it’s only $155—doubling the principal.

But the stock market has risks. We’ve experienced major crashes in recent years: the dot-com bubble in 2000, the 2008 financial crisis, COVID-19 in 2020, inflation in 2022. Although markets rebounded and even hit new highs afterward, if you need money urgently in the middle, you might have to sell at a loss. For small investors, long-term investing is more suitable for those with higher income and strong risk tolerance.

If you have time to study the market, are a student or work in sales, you can try capturing trend fluctuations and use turnover to build wealth. For example, the US interest rate hike cycle is nearing its peak, and future cuts or QE are likely. The dollar supply will increase, and shorting the dollar after the last rate hike has a high success rate. A weaker dollar will also boost cryptocurrencies, so going long on crypto is also a good idea. The stock market periodically has hot topics, like AI concept stocks, which are frequently covered in news, providing upward space for related stocks.

When it comes to assets worth investing in, I categorize them into four functional roles. Defensive assets like gold don’t pay dividends but can resist inflation and currency depreciation. Gold prices surged mainly in 2019-2020 and again in 2023-2025, driven by uncertainties like COVID-19, US rate cuts, and the Russia-Ukraine war. Transformational assets like Bitcoin are no longer just speculative tools; they are being included in ETFs, sovereign funds, and corporate balance sheets, transforming into digital reserve assets. Currently, Bitcoin is around $79k, and its future potential is worth watching.

Growth assets refer to those with the potential for rapid revenue and profit growth in the coming years. NVIDIA is a leader in AI computing, with GPUs and data center platforms as core infrastructure for large AI models. Its strong integration of hardware and software represents the long-term story of commercializing computing power and expanding profits. TSMC is a semiconductor foundry leader, supporting AI, metaverse, and automation industries. Its advanced process technology, steady orders, and continuous investment make it the most direct and reliable target for Taiwanese investors participating in global AI growth. NextEra Energy is the largest green energy and grid integration company in the US, owning renewable energy and grid assets. It has natural scale and regulatory advantages in energy transition, with stable cash flow and dividends. As AI energy demand surges over the next decade, investments in power and grid are more stable than just solar or wind energy.

Cornerstone assets have only one mission: not to be left behind by the world. Taiwan’s high-dividend ETF 0056 is the most well-known, with a 60% dividend payout and 40% stock price appreciation over the past 10 years. It’s estimated that the next decade will see similar returns, doubling assets, with 60% of dividends reinvested to grow wealth. If you save 100,000 yuan every year and spend the dividends, after 13 years, you’ll have a dividend income of 100,000 yuan annually; after 25 years, over 220k yuan annually. Plus, with labor insurance and pension, you can have about 20k yuan per month, totaling around 40k yuan monthly income. SPY mainly tracks the US’s top 500 companies. Over the past 10 years, its stock price rose from 201 to 434, with a 116% return. Its dividend yield is about 1.1%, with an 8% annual capital growth. Although dividends are taxed and relatively low, the growth potential of capital gains surpasses that of Taiwan stocks. As long as you believe the US economy won’t collapse, it’s the most stable long-term wealth growth tool.

Ultimately, many of these investment methods don’t require large sums of money. Several thousand Taiwan dollars can set up regular investments or participate in major trends through contracts. With good investment mindset, these are all valuable targets. All you need is enough patience for compound interest or enough time to research entry and exit points. With the right mindset, projects, and time, turning 100,000 yuan into wealth is just around the corner.