8 questions to rate your financial freedom

1.Do you have a personal budget?

a)I have a recently updated budget that I follow regularly.

b) I made on of those budget things, but have not been following it.

c) What is a budget?

2 Have you thought about saving for the future?

a) I have a plan to save for long-term goals, such as paying for a child’s education or purchasing my own home.

b) I am focusing on my short-term goals, I will think about my long-term goals later.

c) If I saved money to go to a fancy dinner next week, does it counts as “saving for the future”.

3.Do you keep an emergency fund that covers at least three months of living expenses?

a) I do keep an emergency fund with about much in it.

b) I have a savings account, does that count?

c) I don’t even know how much three months of living expenses would be.

4. True or False: The type of car you drive affects how much you pay for car insurance:

a) True.

b) False.

c) Isn’t car insurance optional?

5. Do you use your credit cards responsibly?

a) I pay off my credit bills in full each month.

b) I pay more than my minimum payments each month.

c) I just pay the minimum payments.

6. How many credit cards do you own?

a) One or two but very rarely use them.

b) Two and more and use them frequently.

c) I collect credit cards.

7. How much is your credit usage?

a) 30% or less.

b) up to 70%.

c) 100% overdraft.

8. Do you keep minimum funds in checking account to avoid late payment fee?

a) Of course.

b) No or sometimes.

c) As I said I have overdraft.

Answers:

a) 3 points

b) 2 points

c) 1 point

19 points or higher: EXCELLENT MONEY MANAGEMENT SKILLS! You are well on your way to becoming financially free. Booster your financially savvy by seeking advice on every stage of your life and preparing for every situation.

14 – 18 points: NOT A BAD START! You have a fairly good understanding of your financial situation, but could use some help brushing up on the basics. The best way to start is to evaluate your budget and determine what steps are next to take.

13 points or lower: YOU’VE GOT SOME WORK TO DO… While you might not be the most financially free, there are plenty of resources available to help catch up to speed. Even you can develop the skills necessary to become financially free.

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Posted by admin on Jul 13th, 2009 and filed under Journal. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site