How much to save a month to reach $10,000 in 2 years

Monthly saving needed to reach $10,000 in 2 years

The higher the return, the less you have to pay in yourself, because growth does part of the work. The table shows four cases from no interest to 6% a year.

Reaching $10,000 over different time frames

Giving yourself longer is the easiest way to lower the monthly amount. At 4% a year, $10,000 needs $401 a month over 2 years, but only $193 a month if you take 4 years.

If you already have some of it saved

A starting balance grows with interest too, so you need to save less each month. The table assumes 4% a year over the same period.

Ways to make the goal easier

• Start with what you can afford: even half the amount gets you $201 a month toward $10,000 sooner than you think.
• Automate the saving on payday so it leaves your account before you can spend it.
• Give yourself more time: stretching the goal by a year lowers the monthly amount.
• Keep goal money in a place where it cannot fall in value if you need it within a few years.

Cash or investments?

For goals within about five years, a cash savings account or a fixed-rate bond keeps the money safe. For longer goals investing can grow the pot faster but values can fall. Retirement accounts such as a 401(k) or IRA have tax advantages, and contribution limits that change every year. Interest and gains in an ordinary taxable account can be taxed.