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What If You Invested $500/Month for 20 Years? A Realistic Look
Completely change your financial future
Investing $500 a month might not seem like a significant amount. However, over time, it can significantly alter your financial future. In this article, we will walk through what really happens if you keep that habit going for 20 years. We will also look at what can affect your results, and why starting now is better than waiting.
How Much Could You Really Have?
If you invest $500 every month for 20 years, you will have put in a total of $120,000. But because of compound growth, your ending balance will likely be much higher than that.
Let’s use a simple example. If your investments earn an average of 8 percent per year, which is close to the long-term average return of the stock market, your account could grow to around $247,000. If your returns are lower, say 6 percent per year, you might end up with about $209,000. And if you average a stronger return of 10 percent, your investment could grow to roughly $300,000.
These numbers are not guaranteed, but they show how consistent investing pays off over time.
Why Time Matters Most
The biggest factor in growing wealth through investing is time. The earlier you start, the more…
