The sad truth is that most people, especially working folks, are not prepared to handle adverse economic conditions which are what individuals face when it comes to their income in the 21st century. Let's look at them.

1. Rising Living Costs

There is no need to convince you with "statistics" about the CPI (consumer price index) or the inflation rate. You have first-hand experience how high oil prices leads to high gas prices and the impact on food and other things you need.

When you shop and find that the cost of milk, meat, produce along with just about everything else has gone up, you know that you will spend more money than you have in the past.

Add to this rising costs for things such as health care and other living expenses, and your household budget is further strained.

It becomes a question of whether or not you can afford your living costs. Is your personal income enough?

This brings me to the second concern.

2. Economic Changes

You have first-hand experience as to what happens when there are changes in the economy. Things like high gas prices or economic recession are simply part of a number of changing economic conditions.

Once upon a time you could get a gasoline fill-up without second thoughts. Now you have to determine where to get gasoline cheap or how much it will cost for a fill-up.

That is a change in economic conditions caused in part because of supply and global demand. It is having an adverse effect on individuals who find it more difficult to pay for fuel.

It should raise the question in your mind whether there will be further adverse economic changes and how they will affect your life.

3. Risks and Threats

Rising Living Costs and Economic Changes are just a couple of things that give rise to a long list of risks and threats to your income. Now that is getting really personal and really serious.

For example, if you rely solely on job (employment) income, you are at risk. Your mistake is putting total reliance on this when it comes to your financial survival. There are threats because of things like economic recession, with potential for cutbacks, pay freezes or job layoffs.

The burden of debt is another major threat. The fact that you carry debt at all should be a cause of concern. Unfortunately, people have been led down this pathway as the means to acquire things they need or want. The price you finally pay - both in money and stress over the burden of debt is much more than the actual cost of whatever it is you are paying for. The extension of credit and the debt it creates for you the individual is no favor in spite of the person smiling at you trying to close a deal. It enslaves you.

Problems Likely To Continue

Most people can relate to all of this and generally have first-hand experience with these kinds of things.

As you know, a recession is nothing new. It can happen again. Rising oil prices have happened before, it can happen again. You can look back as far as you like and the cost of living has been constantly rising. It is likely to continue to rise.

The question is, What Can You Do?

Learn What to Do

If you have had or are currently having problems because of the things mentioned, it means what you are doing isn't working in your favor.

For example, if you have had difficulty affording things because of high gas prices or a rising cost of living, then that is the "Wake-up Call" that you must pay attention to.

That "Wake-up Call" should be regarded as your warning that you are at risk and vulnerable to economic changes.

Again realize that everyone is affected by economic changes whether good or bad, but only those who have prepared themselves are better able to handle things like rising gas prices or economic recession.

You can minimize and reduce your risk if you learn what to do and then do it. This is an important matter for every working person. If you have children, you want to learn what to do to ensure that you have the means to provide for them, regardless of the changes in the economy.

So before you do anything else, get the knowledge you need about the situation, the problems and what you can do to solve them.