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Another 54% of consumers feel they dont have enoughmoneysaved up to cover an emergency should it arise.
Heres what they shared below.
It helps cover expenses without the need to rely on credit cards or loans.
Even if youre not someone whos easily tempted to spend money, that little bit of separation doesnt hurt.
According to theFederal Reserve, the average APR on a credit card is nearly 23%.
Payday loans have financing fees that, on average, equates to roughly400% APR.
Knowing that you have a safety net for unforeseen expenses provides peace of mind, he said.
Londono added that separate emergency savings comes withincreased financial flexibility.
Having that financial cushion can make a huge difference if and when the time comes that you need it.
And it can protect your other finances like your savings and investments if something happens.
Makingunexpected large purchasescan be very stressful and have a significant impact on your financial wellbeing.
In fact, you should be adjusting your spending habits to reflectincreased savings behaviorswhen possible.
In terms of how you go about it, thats ultimately up to you.
McCarthy did have some advice, however.
One thing that I would recommend is to diversify your savings options to maximize your earnings potential.
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