Financial expert explains fiscal cliff, what it means to you

FORT WAYNE, Ind. (WANE) - In less than 20 days all Americans will see their taxes go up and sweeping spending cuts if Congress doesn't act.  President Obama and House Speaker John Boehner met face-to-face twice this week, but don't sound any closer to reaching a deal.  The White House wants to raise taxes on the top two percent of Americans but Republicans said that would hurt small businesses.  Some members of Congress are pushing for a smaller deal that would keep current tax rates in place for most Americans and put off some of the more contentious issues for next year.

With the fiscal cliff deadline fast approaching, we're digging deeper to uncover what this could mean for you and your family.

Doug Lockwood from Hefty Wealth Partners said they're looking at two things.  First, legislators are determining if they'd like to raise taxes.  If so, how much? Secondly, government spending will be reduced - especially when it comes to defense spending.  Lockwood said both of those things will slow our economy's growth.  He believes that will mean we'll have less money for goods and services.  Legislators are evaluating what the impact may look like.

"Even though you may not be apart of the defense industry, the defense industry spends a lot of money on a wide variety of goods that impact other industries.  Those other industries may impact you and your family and your particular job.  That may make it difficult for a firm to provide a bonus because they had to cut back or scale back.  Your job could be in jeopardy.  It may be difficult to find a job," Lockwood explained.

Legislators are expected to come to a decision sometime in January.  At this point though, Lockwood said you should begin to evaluate your needs and stick to a budget that works for you.