A Six-Figure Income May Not Shield You From a Shock

Here's a question, as Congress thrashes out the health-care bill: How well prepared are you for a sudden spike in expenses from a medical emergency? Or, for that matter, for a lost job or surprise tax bill?

When your cash flow is strong, it's easy to skate along without paying much attention to how your monthly income and spending bounce around. As long as the checking account looks good, you're good—until you're not, because an unexpected expense or drop in income, perhaps at the same time, makes what seemed a perfectly fine cash cushion look alarmingly thin.