quick clicks

moms today articles

moms today q&a

message boards

research baby names

prepare a birth plan

content channels

ip channel rss feeds

read birth stories

read parenting stories

recommended books

e-newsletters

safety recalls

ip diaries

ip store

mom of the month

dad of the month

editor's letter

letters to the editor

When Income Decreases, but the Bills Don't

Tips for Dealing with Unexpected Financial Crisis

Considering the unemployment rates these days, it's surprising how many families are ill prepared for a financial setback such as a layoff. As a nation, we're saving less than 1 percent of our income. In fact, we haven't saved less since the Great Depression.

Experts say that not having an adequate savings cushion is what sends many families into financial crisis. Layoffs, downsizing, "right" sizing and merger mania are all very real threats that catch many by surprise.

"We aren't preparing for the future, and this is a grave concern," says Rudy Cavazos, director of corporate and media relations for Money Management International (MMI). "One seemingly small setback is all it takes to send many families spinning out of control."

If you find yourself unprepared for a financial crisis, MMI offers these tips to help:

You must stop spending money on anything but the bare necessities. Consider selling assets to keep afloat.

You will not get out of this problem by attempting to get more credit. If you know that the income interruption is only temporary, then a small loan to tide you over may be appropriate.

Want to see more?

• Recession Depression: Dealing with Layoffs and Downsizing
• Stepping off the Curb: Redefining Your Career Path
• Surviving the Slow Economy: Tips for Navigating Through Turbulent Financial Times
• Talk about it!
• Read more Finance articles.
• Talk about it!