50-30-20 MoneyPlan | Page 2

The typical family of today doesn't have a spouse in reserve that could enter the workforce if necessary. They don't have the option of sending the wife into the workforce to help cushion the blow of the husband’s job loss, because the wife is already in the workforce. And even with two incomes, they are still spending 75% of their earnings on fixed expenses: expenses, again, like the mortgage that cannot quickly or easily be cut back. So you can see it's much harder for a family today to weather something going wrong without depleting savings and/or resorting to debt which can spiral out of control.