Thursday, March 27, 2008

How Bad Is It? One Family's Slide from $70K to Handouts

How big is your emergency fund? My just-in-cast fund needs a major boost and this story from CNN has an extra message about the need for emergency funds and the importance of a diverse stream of income.

The news story features one woman's drop from a salary of $70,000 a year to the food bank line.

Here's the opening:

When she was laid off in February, Patricia Guerrero was making $70,000 a year. Weeks later, with bills piling up and in need of food for her family, this middle-class mother did something she never thought she would do: She went to a food bank.





Margaret said...

it's stories like these that make me glad i've finally started an emergency fund. still, i'm terrified of it not being enough.

Anonymous said...

Instead of just reading the article, I decided to watched the video. And in the video, she talked about how she took off her Tiffany bracelet and left her Coach handbag in her car before hitting the food bank.

Her house is 1000% better than the place I rent. Hardwood floors everywhere. Flat screen plasma in the living room (although CNN tried to angle the camera to not capture it). Black galaxy granite kitchen counters with a giant center island. Stainless steel refrigerator. Custom ceramic appliances. Blue lighting flashing against the teapot.

Ahem ... how about selling the bracelet, selling the coach handbag, selling some of the immaculate possessions they have in their house ... before letting somebody perhaps even harder off at a food bank to pay your utility bill. Incredible.

Nameless for Now said...

This family's story also shows how important it is to live within your means...I was stunned by the $2,500 interest-only mortgage.