Feeling financially strapped? Creating emergency savings is easier than you think

From rising prices to job uncertainty and unexpected medical bills, financial curveballs can hit at any time. But having an emergency fund can make all the difference. Consumer Reports says building that safety net might be easier—and more important—than you think.

You probably have Band-Aids in your medicine cabinet and jumper cables in your car, but do you have a financial emergency kit?

More and more Americans struggle to pay for basics like groceries, rent, and gas. Even with unemployment low right now, Bankrate’s annual emergency savings report found that 59 percent of Americans said they couldn’t afford to cover an unexpected $1,000 emergency expense.

And it’s no surprise: inflation, high interest rates, and unstable income are some of the biggest reasons people say they can’t save or don’t even try.

Sit down and take a close look at your monthly expenses, and look for easy things you can cut, including Internet subscription services you no longer use, or phone or cable services you don’t need!

When you’re ready to take the first step, Consumer Reports’ simple tips can help you start—and stick with—an emergency savings fund.

First, calculate how much you’d need to cover three to six months of essential

expenses such as housing, utilities, food, transportation, and debt payments.

Next, open a separate savings account just for your emergency fund, so you won’t be tempted to dip into it for everyday spending. You could keep it in a savings account, but your best bet is to put the emergency fund money into an account that earns a high interest rate or a no-penalty Certificate of Deposit.

And to make saving even easier, set automatic deposits or transfers from your

checking account to your emergency fund. This will keep your contributions on track and secure until you need them.

If you’re struggling with medical bills, Consumer Reports warns to steer clear of medical credit cards or loans offered by healthcare providers. They often come with high interest rates, hefty penalties, and could seriously hurt your credit.