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Step 4: Create a Savings Action Plan
Suze says Scott and Carol must commit to paying off their credit cards. After Scott and Carol pay off their credit card debt, Suze says the next step is to follow a savings action plan.
1. Save enough to cover eight months of expenses. "I know that sounds like a lot. I know that sounds like an impossibility. I know that you think you'll never get there," Suze says.
2. Decide how much you can save each month and add 20 percent. The key to saving, Suze says, is challenging yourself. "Decide that you can save so much every single month. Whatever that figure is that you decide you can save, I want you to stretch it. I want you to add 20 percent to it," she says. "As much as you think you can do, I'm here to tell you, you can do more. You are all more than you really know you are. And if you just stretched your abilities, you would grow into your abilities."
3. Search for the savings account with the highest interest rate. When you start saving money, Suze says to be a good shopper. Look for an FDIC-insured savings account with the highest-earning interest rates you can find. "Little by little, if you take little actions, your plans will become a reality," she says. "Don't get overwhelmed by it. Just do it. ... When you have $1,600—$1,600, honest to God, feels eight times better than $200."
Use this calculator to see how much your money can grow in a savings account.
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