As a general rule of thumb, you should aim to keep three to six months’ worth of living expenses in a savings account to act as an emergency fund. Because everyone’s cost of living is so different, the ideal amount to keep in a savings account will vary.
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If your ideal emergency fund amount is $10,000 (or more) it can be daunting to figure out how to get there. But Suze Orman, host of the “Women & Money” podcast and one of GOBankingRates’ Money’s Most Influential Women, believes it’s possible for everyone to achieve this savings goal.
Here’s Orman’s best advice for saving up $10,000.
Just Get Started
Sometimes the hardest part of saving is simply opening an account and making that first deposit. But once you get started — and keep making consistent contributions even when it’s challenging — the process becomes easier and easier.
“Just start doing it month in and month out,” Orman told GOBankingRates. “What’s going to happen is you’re going to learn that it’s easier to save than you think. And when you realize that you can do it, you continue to do it. Before you know it, $1,200 turns into $2,400 turns into $5,000, and $5,000 turns into $10,000.”
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Put Money Into the Right Savings Account
Your savings will grow faster if you’re strategic about the savings account you choose. Orman said to look for an account that offers a sign-up bonus or other incentive, as well as a high interest rate. She personally recommends Alliant’s Ultimate Opportunity Savings Account.
“[If] you put in $100 a month and you put it in every single month for 12 consecutive months, at the end of 12 months, they will give you $100,” she said. “Along with that, your money will be making about 3.1% in interest while it’s in there.”
Gabrielle Olya contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Suze Orman: Here’s How To Reach a $10K Balance in Your Savings Account
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