Here's how much money you'd have if you invested $500 a month since 2009 (2024)

If you started saving $500 a month at the beginning of the decade and put it into a savings account that earned little to no interest, you'd have about $60,000 today.

That might seem like a lot, but that $60,000 wouldn't stretch quite as far today as the same amount would have 10 years ago. And it will be worth even less in another decade. That's because of inflation, which causes prices to rise over time, making money less powerful. While a $20 bill will always be worth $20, what you're able to buy with that amount dwindles.

Over the past 10 years, inflation has typically risen between 1% and 3% per year. In 2019, it was about 2.1%. That means you'd need around $72,000 in 2019 to command the same purchasing power $60,000 would have granted you in 2009.

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In order to beat inflation and ensure that your savings will work for you long term, it's crucial to invest in the stock market, whether through an employer-sponsored 401(k) plan, a traditional or Roth IRA, an individual brokerage account or somewhere else.

Where you choose to invest your money within those investment vehicles matters too, because the amount you earn from the market hinges on the rate of return your investment garners.

Here's exactly how much you'd have now if your investments had grown at a 4%, 6%, or 8% rate of return over the past decade, according to CNBC calculations.

  • If you invested $500 a month for 10 years and earned a 4% rate of return, you'd have $73,625 today.
  • If you invested $500 a month for 10 years and earned a 6% rate of return, you'd have $81,940 today.
  • If you invested $500 a month for 10 years and earned an 8% rate of return, you'd have $91,473 today.

If you'd invested in a company such as Amazon or Google, whose stocks saw impressive returns over the past decade, your investment would have grown much faster than 8%. However, investing in individual companies is risky. Any individual stock can over- or underperform, and past returns do not predict future results.

Other investments, such as low-cost index funds, might not have been the absolute most lucrative over the last 10 years, but they're far less risky, which makes them a good long-term choice. Because they're made up of all of the companies in a certain index, such as the S&P 500, they tend to weather market volatility better.

With an ETF, if one company's stock tanks while another's stock surges, those actions balance each other out in the index. But if you're solely invested in a company whose stock ends up falling, you're guaranteed a loss.

In the past decade, the S&P 500 had a total return of 225%. If you started investing $500 a month in an S&P 500 index fund 10 years ago, you'd have roughly $120,000 today, according to CNBC calculations. That's just about double what you earned if you just left your money in a savings account.

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What's most important is that you start investing as early as you can to give your money as much time as possible to grow. If you're new to the market, that might seem overwhelming, but it doesn't have to be complicated. Here are a few easy ways to get started:

  • Sign up for your employer's 401(k) plan and take full advantage of any company match, which essentially gives you free money.
  • Contribute to a Roth IRA or traditional IRA, which are tax-advantaged individual retirement accounts.
  • Consider automated investing services known as robo-advisors that do the heavy lifting for you.

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Here's how much money you'd have if you invested $500 a month since 2009 (2024)

FAQs

Here's how much money you'd have if you invested $500 a month since 2009? ›

Here's how much money you'd have if you invested $500 a month since 2009. If you started saving $500 a month at the beginning of the decade and put it into a savings account that earned little to no interest, you'd have about $60,000 today.

How much is $500 a month invested for 10 years? ›

What happens when you invest $500 a month
Rate of return10 years30 years
4%$72,000$336,500
6%$79,000$474,300
8%$86,900$679,700
10%$95,600$987,000
Nov 15, 2023

How much is $500 a month for 20 years? ›

For example, an investor who holds their portfolio for 10 years will put $60,000 into it (10 years of investing x 12 months per year x $500 per month), while an investor who holds the same portfolio for 20 years will contribute $120,000 worth of capital.

What if I invested $500 a month in S&P 500? ›

For example, if you are able to commit to investing $500 a month in an S&P 500 index fund like the Vanguard 500 Fund (NYSEMKT: VOO), you'll eventually have $1 million, and that includes paying the 0.03% expense ratio in the ETF, meaning you'll pay 3 cents each year for every $100 you have invested in the index fund.

What is a good return on investment over 10 years? ›

5-year, 10-year, 20-year and 30-year S&P 500 returns
Period (start-of-year to end-of-2023)Average annual S&P 500 return
5 years (2019-2023)15.36%
10 years (2014-2023)11.02%
15 years (2009-2023)12.63%
20 years (2004-2023)9.00%
2 more rows
Mar 5, 2024

How much to invest to make $1,000,000 in 10 years? ›

Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.

How much do I need to invest to be a millionaire in 10 years? ›

Save as Much as You Possibly Can

“Say you're going to average 10% a year on your investment return — you're going to need to save about $5,000 each month to save $1 million.” Moore recommends putting this money into an employer-sponsored retirement savings account if possible.

Is $500 a month good for a 401k? ›

If you start saving $500 a month for your retirement fund at the age of 30, you'll still be setting yourself up for greater financial stability when retirement arrives. By stashing away that much each month, you can expect to accumulate around $400,000 by the time you reach 60.

Is $500 a month good for investing? ›

You can become a millionaire by investing $500 per month consistently for almost 30 years. This is a low-effort strategy, but you can achieve this goal even faster through the right combination of individual stocks. Should you invest $1,000 in Vanguard S&P 500 ETF right now?

How much will I have if I save $1000 a month for 10 years? ›

Year 2: After two years of consistent saving, your total savings would reach around £24,957. Year 5: Over five years, your savings would grow to approximately £63,129. Year 10: Saving £1,000 a month for ten years would result in a total savings of around £130,994.

How to invest $500 dollars for quick return? ›

Six Accounts to Maximize a $500 Investment
  1. Investment Brokerage Account. A great way to start investing $500 is by opening an investment brokerage account. ...
  2. Individual Retirement Account (IRA) ...
  3. High Interest Savings Accounts (Emergency Fund) ...
  4. Employee Sponsored Retirement Plans. ...
  5. Certificate of Deposits. ...
  6. High Interest Debts.
Jan 27, 2023

How many years it will take you to double your money if you invest $500 at an interest rate of 8% per year? ›

For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

What is the 20 year return of the S&P 500? ›

The historical average yearly return of the S&P 500 is 9.74% over the last 20 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 6.96%.

What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Apr 1, 2024

How much money do I need to invest to make $1000 a month? ›

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

Do investments double in 10 years? ›

The Rule of 72 is focused on compounding interest that compounds annually. For simple interest, you'd simply divide 1 by the interest rate expressed as a decimal. If you had $100 with a 10 percent simple interest rate with no compounding, you'd divide 1 by 0.1, yielding a doubling rate of 10 years.

How much can you make investing $500 a month? ›

Investing $500 per month is a lot for many people. But by reducing your spending in some areas, you'd be surprised at how much you can set aside with a proper budget. With enough time and a proper investment, this simple strategy could even turn $500 per month into $1 million.

How much should I invest to make $500 a month? ›

To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.

How much is $100 a month for 10 years? ›

How $100 a month can help make you wealthy
If you invest $100 a month for this many years......this is how much you'll end up with.
10$21,037.40
15$41,939.68
20$75,603.00
25$129,818.12
2 more rows
Oct 1, 2023

How much will I have if I save $100 a month for 10 years? ›

Year 10: Saving £100 a month for ten years would result in a total savings of around £12,398.

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