If you invest $300 a month for 8 years and generate a return of 6% to 8%, you can expect to end up with anywhere from $35,630 to $38,292 at the end. From this your total invested amount would only be $28,800. The balance would be returns from your investments.
Saving and investing $300 a month is a great target to shoot for and is a great way to build up savings over time. Try using the calculator below to see what other possible outcomes can be achieved if you vary your monthly savings and investment target, along with the rates of return achieved over time.
The calculator will also generate results and a chart for your inputs.
Investing $300 a Month Calculator
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Usage Guide
There are 4 inputs to this saving $300 a month calculator:
- Starting Investment: Enter the current value of your portfolio. If you’re just starting out, then you can default it to $0.
- Monthly Savings: The amount you will commit to your portfolio each month.
- Annual Rate of Return: A safe value to use is somewhere between 6% to 8%. If you are extremely conservative, then you can use 4% to 5%. If you are aggressive, you can try between 8-10%.
- Number of Years: How many years you can contribute the $300 per month.
Outputs
The calculator shows two charts in the result. The first chart shows your portfolio growth over time when you save $300 (or another amount) a month.
The second shows the same thing, but splits out the components in to your cumulative invested capital (dark blue) and market returns (orange). If you invest for long enough (over 30 years), the market returns will far exceed the total cash you have contributed.
What’s the best way to invest $300 per month?
The best way to build up a huge portfolio with a $300 a month in savings is arguably through investing. However before we get there, it’s first important to look at the full picture.
- Eliminate debt: As boring and repetitive as it sounds, it makes sense to first eliminate your debt – especially high interest rate debt such as credit card debt or other consumer loans like car loans or those buy-now-pay-later type debt.
- Build Up Your Emergency Fund: Again, another piece of unsexy advice, but it’s important to build up your emergency fund with cash savings that has at least 3 months, but preferably 6 months of expenses. You can invest your emergency fund in a high interest savings account or perhaps even put it in a money market fund.
- Invest it: Finally we get to the most fun piece. It’s important to invest your money in a way that aligns with your needs and risk tolerances. Depending on your needs you may choose to go with balanced funds or perhaps go all out with 100% equity funds. It’s important to manage your portfolio prudently, but being overly conservative is not recommended as you will end up sacrificing long-term returns.
If you need help with this, a good way to start would be to educate yourself and to meet with a financial advisor who has fiduciary duty towards you. They will help you decide how to structure your portfolio. Some people have a preference for capital growth whereas others may want dividend income.
If you’re going digital, make sure to choose a trading platform, like M1 Finance that investors and traders recommend.
Before You Go…
The best way to increase your savings is to first increase your income. Whether it’s a side hustle like Doordash or something that involves a little less work. Want to start making more money to save? Take a look at my guide on the best things to buy and sell for profit.
Our whole blog is dedicated to help you get on the path of financial freedom. Feel free to browse around and read through the articles.
FAQs
What if I invest $300 a month for 5 years?
If you invest $300 a month for 5 years and generate 6% to 8% over that period, you could end up with $20,294 to $21,120. From this your total invested amount would only be $18,000. The balance would be returns from your investments.
What if I invest $300 a month for 10 years?
If you invest $300 a month for 10 years and generate 6% to 8% over that period, you could end up with $47,451 to $52,152. From this your total invested amount would only be $36,000. The balance would be returns from your investments.
If I save $300 a month for a year, how much will I have?
You will have $3,600 saved up at the end of the year. I recommend continuing that pace of savings and investing it wisely to grow your savings portfolio over the years.
If I save $300 a month for 2 years, how much will I have?
You will likely end up with around $7,400, assuming you can generate a 5% return or interest income on the money. I recommend continuing that pace of savings and investing it wisely to grow your savings portfolio over the years.
