Most people know they should be investing. But “should” and “actually doing it” are two very different things. The hardest part isn’t picking stocks or timing the market — it’s just getting started.
If you invested $500 a month for 10 years — and never touched it — you’d put in $60,000 of your own money. But thanks to compound growth, your account balance could be closer to $95,000 or more at the end.
I’ve been maxing out a Roth IRA for over 10 years now. The account balance today is a direct result of continuing to invest slowly and consistently.
Here’s what the math actually looks like across a range of different returns.
What $500 a month actually grows into over 10 years
Here’s what $500 a month looks like at three different average annual return rates, assuming you’re invested in something like a low-cost S&P 500 index fund:
|
Average Annual Return |
Balance After 10 Years |
|---|---|
|
7% |
~$82,900 |
|
8% |
~$86,900 |
|
10% |
~$95,600 |
Data source: Author’s calculations.
For context, the S&P 500 has historically returned around 10% annually over the long term.
That doesn’t mean every year will look like that — some years will be up big, others will be down. But history shows that patient, consistent investors come out ahead.
And here’s the thing about compound growth — the longer you stay invested, the more exponential it gets. Your returns start earning their own returns, which earn their own returns — like a snowball growing bigger.
If you keep that same $500 a month going for 30 years, and achieve an average 10% return, you’re looking at roughly $989,000.
What if you can’t save $500 a month right now
The dollar amount you save matters a lot less than the ongoing habit. The most important thing is to just get started.
Open an account and set up a recurring transfer — even if it’s $50 or $100 a month. You can always increase it later as your income grows.
But the clock on compound growth starts the day you make your first contribution, not the day you feel financially ready.
I started small, too. But as time went on and the habit of investing was formed, I was able to increase my contributions. What made the difference was just getting the ball rolling.
Easy ways to start investing
Here are the account types to consider if you’re looking to set up regular, recurring investments:
- Your 401(k) at work — If your employer matches any portion of your contributions, grab it. That could mean an instant 50% to 100% return on your money. Contribute at least enough to capture the full match before doing anything else.
- A Roth IRA (or traditional IRA) — This is the lowest-hanging fruit in long-term retirement investing. In 2026, you can contribute up to $7,500 per year ($8,600 if you’re 50 or older). A Roth IRA grows tax-free, which means zero taxes on withdrawals in retirement. For most people, this is the single best retirement account available.
- A taxable brokerage account — After you’ve taken advantage of tax-friendly retirement accounts, a regular brokerage is a solid overflow vehicle. More flexible, no contribution limits, and a great way to build a massive portfolio over time.
All three of these accounts support automatic contributions — meaning you can set your monthly amount, schedule the transfer, and never have to remember to do it manually. “Set it and forget it” is a real strategy here, and it’s the one I use.
The bottom line
Investing $500 a month for 10 years could realistically get you a $100,000 account balance if you can achieve average market returns consistently.
The hardest part isn’t picking the right investment. It’s just starting and setting up the contributions each month. So start today, even if it’s small.
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