I like it when people recommend big numbers without thinking about what the user actually needs. Yes,
@axel9546, go with 512 GB SSD and 16 GB RAM. You don't need to know the reason. In fact, **** it, what you really need is a iMac Pro with an 18-core Xeon and 128 GB RAM. You need it all.
That was sarcasm, don't do that.
@axel9546, what you ought to do is save up some extra funds so you can afford to buy the kind of iMac that will provide you with all the performance you need now and for some time down the road. Please avoid rushing to buy the cheapest iMac you can find that ultimately may not adequately meet your needs because of your current budget constraints. That's not to say you need an iMac with 16 GB RAM, because it depends entirely on what you do and how long you hope to keep the machine.
What's your usage flow like? What kind of apps do you use simultaneously? I'm a software engineer and I often have 2 to 3 virtual machines up at once, which can take anywhere between 1 - 3 GB RAM each. For this reason I personally need 16 GB in my iMac, but not all software engineers will need this much.
It depends on what they do. Same for your line of work, hence the question.
Now the 21.5-inch iMacs are fine but some of them are very, very slow. For example, the 1.4 GHz iMac from 2014 is a slow piece of **** and should be avoided under any circumstances. What hurts it the most is that for such a slow processor, Apple chose to insult users by pairing it with a 5400-rpm hard drive instead of choosing to spend a very small amount extra to pair it with a faster 7200-rpm hard drive. They still do this today with the first two 21.5-inch iMac configurations. It might be more bearable with a faster processor as is the case with the 3.0 GHz 4K iMac, but it's still slow compared to a 7200-rpm hard drive and very slow compared to a Fusion Drive or SSD.