New book highlights modern financial challenges

Clark has been reading a new book titled "High Wire: The Precarious Financial Lives of American Families." Author Peter Gosselin's story dovetails very neatly with Clark's talk of the recent generational shifts that make our current economic slowdown more painful.

It's no secret that there's no longer a "lifetime contract" between employers and employees. We "rent" them and they "rent" us. Gone are the days of pensions after a lifetime of work or the promise of employer-provided healthcare in old age. To complicate matters, people have long since stopped paying cash and now live on borrowed money.

These factors in combination make for an explosive mix that creates financial insecurity. Gosselin talks about being on a wire without a net. Think about your own life: Are you without a net? If so, are you prepared for the consequences that can come if you lose your job?

Here's Clark's advice to get things back on track in your life:

-- When it comes to a house, buy with a down-payment. Go for a 30-year fixed rate loan to keep things simple.

-- With cars, limit your loans to 42 months or less -- or risk being upside-down in your car.

-- Do not use debt for lifestyle; it only creates obligations, not opportunities. On the other side of the ledger, are you saving? The average American family is spending more than it takes in. But, again, what happens when you lose your job??