Page 5 - AAA Central Penn – AAA Now! – May/June 2018

WITH YOU ON
THE ROAD OF LIFE
AAA
Rainy Day vs. Emergency Funds:
Why They’re Different Yet Both Necessary
Even the best savings plan can be interrupted when something unexpected occurs. Establishing rainy-day and emergency
funds will allow you to handle unexpected expenses that
come your way. But what’s the difference between the two, and why are both necessary?
A rainy-day fund is money
set aside for when random
inconveniences strike.
Automotive repairs, broken appliances, and last-minute travel emergencies hit when you least expect it; it’s important that you’re able to cover these costs without dipping into your checking account. You should try to set aside $1,000 - $2,000 for minor, unexpected events such as these.
An emergency fund is money saved to cover expenses if you find yourself out of work for an extended period of time. If you’re in-between jobs or get sick and can’t work, this fund can be used to support you. Building up around six months’ worth of income is a good rule of thumb, but you should save however much you feel is enough.
Whether illness strikes or your “check engine” light comes on, it’s important to ensure that you have enough money saved to tackle the issue.
Saving for the Moments that Matter
The fondest of memories are typically from life’s special occasions: a family vacation, your child’s graduation or a milestone wedding anniversary. When these important moments occur, it’s important to be financially ready so you can enjoy them without the worry of how you are going to afford them.
Follow these tips to ensure you’re prepared for the momentous occasions in your life:
Plan ahead: Keep an eye on big events going on throughout the year. Knowing a special occasion is on the horizon allows you to start setting aside the funds you’ll need to enjoy it the right way. Don’t let unexpected finances take away from your experience!
Cut out unnecessary spending: Are you more likely to remember ordering out for lunch or how perfect your family road trip was? Curtail non-essential expenses so you can spend on the moments that matter.
Ensure you’re prepared so you can enjoy every minute of your next special occasion. To learn more about AAA savings, money market and CD accounts
by Discover, visit AAA.com/Deposits.
TM
NEW ITEMS
Go Bagg
Hobo Crossbody
Transit Bagg
body strap
• Available in a variety of styles, colors, and sizes
Shop our Travel Stores for these and other travel luggage and accessories.
Out and About Bagg
Baggallini Highlights:
• Lightweight, water-resistant nylon
• Interior organization and multi-functional pockets
• Lighter brighter interior color to find items easily
• Most bags include removable RFID wristlet and adjustable cross
On The Run Phone Case
Around Town Bagg
Discover Bank, Member FDIC
MAY/JUNE 2018
5
Now!