Suze Orman warns Americans with no emergency savings have a ‘financial tornado’ coming their way — here's how to shore up your finances before disaster strikes

And there's new data that shows many Americans aren't prepared for those emergency expenses. One in four (26%) of American drivers say they would not be able to pay for a $500 repair job if their car broke down tomorrow, according to a study from car insurance company Jerry. More than a third of drivers (37%) say they couldn’t cover a $1,000 repair job, and more than half (58%) couldn’t pay $3,000.

Americans who have let their rainy day funds run dry “have a financial tornado or hurricane coming their way,” according to Orman.

Here's why it's so important to build that emergency fund before disaster strikes — and it's easier than you think.

Everything is far more expensive

A recent report from SecureSave revealed the alarming impact high inflation and rising costs are having on Americans’ savings, with a staggering 67% of Americans unable to cover an unexpected $400 expense.

“Inflation makes everything far more expensive,” says Orman. “It’s not just the eggs or the chicken [...] but your car insurance premiums, your home insurance premiums, property taxes, everything.”

Covering an unexpected expense on top of that is just too much for many American households — especially for the 74% who claim to be living paycheck to paycheck, according to the SecureSave survey.

“You don't have any money saved,” says Orman. “You have nothing, and then something hits you — and what do you do? You put it on your credit card, you can't pay it in full.”

It’s the “worst time right now” to wrack up a lot of credit card debt because of how far the Feds have hiked interest rates in the past year, according to Orman.

Instead, she encourages people to take advantage of an employer-sponsored emergency savings account, or ESA — a workplace plan that deducts a small amount of money from your monthly paycheck to create an emergency fund. Often employers will incentivize uptake by matching your contributions.

Watch Now: Full interview: Suze Orman and Devin Miller delve into why so many Americans aren't prepared for their next financial emergency — and how to change that

Emergency saving accounts

Orman — who co-founded SecureSave to help individuals build emergency savings through an employer benefits platform — says having money in an ESA can help you to keep up your mortgage and auto loan payments — and it can stop you running up “crushing” high-interest credit card debt.

“This is the starter block,” she says. “Obviously, we don't expect that you have eight to 12 months of an emergency fund. This is where you start to learn how to save.”

Orman’s hope is to “change the saving habits of everybody in this world.”

She says that once people learn what it feels like to be financially secure — and they enjoy that feeling — they will apply that learning to other areas of saving or retirement planning, such as signing up for a Roth IRA or 401(k) plan.

“The place to start is with an emergency savings account, especially with your employer matching it, [so] that you can take care of the little things that totally put you out of sync with everything else,” she says.

The results speak for themselves, according to SecureSave CEO and co-founder Devin Miller, who joined Orman in speaking to Moneywise on May 16.

The average SecureSave user saves an average of $103 a month toward an ESA, reaching $400 after four months of saving.