As the end of the year approaches, so does the "fiscal cliff," but what will it really mean for you if we tip over the edge?
The term "fiscal cliff" refers to two big events that will hit at the start of the year. First: Bush era income tax cuts are scheduled to expire for tens of millions of Americans. Second: Billions of dollars of spending cuts are scheduled to kick in.
Financial advisor Michael Wittenberg said, "If the fiscal cliff occurs as outlined at the moment, what would happen is, people would have much less money to spend. They'd be paying more of their money in tax dollars and they'd be able to consume less and the economy would likely be in a recession."