How can small investors earn money with 100,000 yuan through investing? A complete strategy from mindset to target assets

Many people think investing is only necessary once you’ve accumulated millions, but this mindset can actually make you poorer over time. Look at reality: eggs are getting more expensive, bento boxes cost more, and rent keeps rising. When mortgage rates stay around 2.2%, every dollar’s purchasing power is quietly shrinking. For small investors, saving up to 1 million may take years, but reaching $100,000 is an achievable goal with effort. Don’t underestimate this $100,000—it’s not just a starting point but also your weapon to fight inflation and begin your journey to earning through investments.

The secret to making money with investments isn’t about having a huge principal, but about planning like running a business: having the right mindset, finding promising projects, and giving them enough time. With these three elements in place, small investors can turn $10,000 into wealth.

Three Types of Investors: Which One Are You?

People from different professions have vastly different investment strategies. Finding a method that suits you is the smartest way to earn money.

Stable Employee: Using Time to Exchange for Space

Your advantage is steady cash flow, but slow capital accumulation. The best fit for you is dividend-focused funds or high-yield ETFs—these investments act like a monthly paycheck pipeline. Over time, the dividends you receive each month could even surpass your salary, effectively helping you save for retirement.

Most conservative small investors find this route suitable because dividends provide immediate cash flow, making it easier to stay committed. While this method doesn’t fully benefit from compound interest and the asset growth is relatively slow, it offers quick returns and a sense of achievement.

High-Income Professionals: Precise Target Selection

Doctors, engineers, and other high earners are busy and don’t have time to monitor markets constantly. The best approach is large-cap index ETFs, such as Taiwan’s 0050 (tracking the top 50 companies) or the US’s SPY (tracking the S&P 500). These index ETFs automatically “weed out the weak,” focusing only on the strong, and tend to deliver impressive long-term returns.

The S&P 500 has averaged an annual return of 8–10% over the past 100 years. For example, investing $100 with a 10% annual return over 10 years would grow to about $236; at 5%, it would be about $155—almost half the principal difference.

However, the stock market has risks. Past crashes include the dot-com bubble in 2000, the 2008 financial crisis, COVID-19 in 2020, and global inflation in 2022. Although markets recovered and hit new highs afterward, if you need to cash out during downturns, you might be forced to sell at a loss. Long-term investing suits those with strong risk tolerance.

Another option is real estate investment. If you believe property prices will rise, using leverage can be reasonable. High-income earners find it easier to get low-interest loans, making leverage more effective. When you’re young with less capital, the opportunity cost is lower, so leverage investments are worth considering.

Time-Rich Active Investors: Profiting from Volatility

If you’re a student or have a job that allows market research, you can try catching trends and fluctuations to accelerate wealth accumulation. These investors spend time gathering data and don’t need to wait long after entering the market.

For example, as US interest rate hikes approach their peak, the likelihood of rate cuts or QE increases. Shorting the dollar after the last rate hike can be profitable. A weaker dollar also boosts cryptocurrencies. Additionally, markets often have “hot topics,” like AI stocks, which can surge based on news hype.

Essential Foundations Before Investing: Mindset, Projects, and Time

Step 1: Build an Investment Mindset—Start with Budgeting

The first rule of investing: only use disposable income. The money you invest shouldn’t affect your daily life. Because investments don’t always go up in a straight line—they fluctuate. If you need to sell during a downturn, you might suffer losses. Therefore, keeping track of your finances is crucial—treat yourself like a company, understand your income and expenses, and ensure you have stable free cash flow. That’s the foundation of successful investing.

Step 2: Set a Clear Goal—Match Investment Projects

Different life stages require different strategies:

• Employees: Regularly invest fixed amounts in financial products without obsessing over market timing.
• Retirees: Invest to generate stable cash flow for living expenses.
• Wealthy: Use investments to hedge inflation, reduce taxes, and transfer assets.

For small investors starting with $10,000, the first step is finding income sources for your expenses. For example, monthly phone bills, utilities, or annual travel and gadget upgrades. Having specific goals motivates your investments.

• If your expenses are fixed monthly, choose monthly dividend funds or high-yield stocks. Many funds pay 7–8% dividends, meaning investing $10,000 yields $700–$800 annually, covering your communication bills.
• If your goal is a new phone or a trip costing $3,000–$4,000, you need a 30–40% return on your $10,000 principal. This requires more aggressive strategies like swing trading, not just stock accumulation.

Small capital offers flexibility. You can be like a nomad, investing wherever opportunities arise, without impacting the market. Many trading platforms now allow low minimum investments in US stocks, indices, precious metals, or cryptocurrencies, often with leverage to amplify gains.

Increasing turnover and using leverage appropriately can accelerate wealth growth. Also, reinvesting your work income as new principal, letting compound interest work, will make your assets grow like a snowball.

Step 3: Give It Time—Be Patient with Compound Growth

The most overlooked factor in investing is time. Whether it’s dividend funds, index ETFs, or swing trading, sufficient time is needed for these to work effectively. The power of compound interest becomes more evident over the long term.

Asset Allocation Guide for the Next 10 Years

Divide your long-term assets into four roles to make smarter decisions:

Defensive Assets: Gold—Insurance Against Inflation

Gold doesn’t pay dividends; gains come from price appreciation. Over the long term, gold effectively hedges against inflation and currency depreciation. During economic instability or market volatility, gold’s safe-haven role becomes more prominent.

Significant gold price increases occurred mid-2019 to mid-2020 and again from 2023 to 2025, coinciding with COVID-19, US rate cuts, and geopolitical tensions. The more chaotic the world, the more you need gold.

Transformation Assets: Bitcoin—Rise of Digital Reserves

Bitcoin is no longer just a speculative tool. As it’s included in ETFs, sovereign funds, and corporate balance sheets, it’s becoming a digital reserve asset.

Over the past decade, Bitcoin has risen from a few dollars to all-time highs, despite volatility. Currently, at around $65,250, the market is adjusting, which might be a good entry point. For investors willing to accept fluctuations, Bitcoin is a worthwhile allocation.

Growth Assets: AI Chips and Green Energy—Future Engines

These assets have high costs, high entry barriers, but once established, they have deep moats. Be prepared for volatility.

NVIDIA (NVDA)
NVIDIA leads AI computing, with GPUs and data center platforms essential for large AI models. Its integrated hardware-software advantage keeps it ahead. For investors, NVDA represents the long-term story of commercialized computing power and profit expansion, beyond just the AI hype.

TSMC
Taiwan Semiconductor Manufacturing Company is a key player in the semiconductor supply chain, supporting AI, metaverse, and automation industries. Its advanced process nodes (3nm, 2nm) and close cooperation with major AI firms ensure steady demand. As a global tech supply chain leader, its future growth remains robust.

NextEra Energy (NEE)
One of the largest green energy and grid companies in the US, with extensive renewable assets and grid infrastructure. It benefits from US energy transition policies, with stable cash flow and dividends. As AI energy demand surges, investing in power and grid infrastructure is more resilient than just solar or wind.

Cornerstone Assets: ETFs—The Most Reliable Wealth Builders

These assets’ main task is not to be left behind. They may not outperform every year, but as AI boosts productivity, they will reflect those gains steadily.

0056—Taiwan High-Yield ETF
Tracks high-dividend stocks, paying out almost every year. Over 10 years, it has distributed about 60% of the principal in dividends, with a 40% increase in stock price. With a stable dividend yield of around 4%, investing $10,000 annually could generate $1,000 in dividends after 13 years, and over $2,200 after 25 years. Combining dividends and capital appreciation, your wealth grows steadily.

SPY—US S&P 500 ETF
Tracks the top 500 US companies. Over 10 years, its price rose from 201 to 434, a 116% increase, with an average annual return of about 8%. It also pays about 1.1% in dividends annually. While the dividend yield is lower, the capital gains potential is unmatched, making it a reliable long-term wealth growth tool. The downside is limited cash flow; you mainly rely on asset appreciation.