Is Saving $500 A Month Good?

Is saving 500 dollars a month good?

The golden rule of saving money is that at least 10% of your income should be saved for the future.

So, the monthly saving of $500 is good if you earn $5000 per month, awesome if you earn $3000 per month.

What happens if you save 500 a month?

Here’s exactly when you’ll become a millionaire if you save $500 per month. With an 8 percent rate of return, you’ll become a millionaire in 33 years, by 2050. With a 10 percent rate of return, you’ll become a millionaire in 29 years, by 2046.

Is saving $1000 a month good?

To recap: For every 1,000 bucks per month in income in retirement, you need to have $240,000 saved. This easy-to-follow bit of wisdom can help you remember that you’re saving money so that one day it can replace the income stream you will lose when you stop working.

How much does an average person save a month?

Many sources recommend saving 20 percent of your income every month. According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and at least 20 percent for savings.