With more people getting into debt each day, knowing where you are headed financially is important to determine your next move. Do you keep going? Do your make a legal-U turn? Or do you accelerate in the same direction? The local TV broadcast featured this financial fitness test and i thought it is a great review of financial standing. A more interactive version will be coming later.
- I have a bank account (y/n).
- I have enough money to pay my bills each month (y/n).
- I take advantage of resources available to help meet my needs (ex: tax credits, community programs, Medicare, public assistance) (y/n).
- I use a budget to guide my spending and savings each month (y/n).
- I have written financial goals with a date and cost (e.g., $12,000 for a tuition expense in 2010).financial goals for the future (y/n).
- I plan for expenses that only come once or twice a year and have enough money for them when I need it (y/n).
- I have an emergency savings account with enough money to cover 3 to 6 months of my living expenses (y/n).
- I calculate my net worth (assets minus debts) every year (y/n).
- I review my credit report annually (y/n).
- I use credit only to pay for things that last longer than the payments (y/n).
- I have adequate insurance (auto, home, renter’s, life, and health) (y/n).
- I keep my financial records organized (y/n).
- I pay my bills on time every month (y/n).
- 14. I balance my bank account every month (y/n).
- 15. I save money on a regular basis for long term financial goals (ex: children’s education, a house, retirement) (y/n)
If you answered No for 9-15 questions: You need lots of help, but don’t worry! It’s never too late to take steps to improve your finances.
If you answered No for 5-9 questions: You are headed for financial difficulty. Now is the time to take action and get financially fit.
If you answered Yes for 9–12 questions: you are doing a fair job of managing your finances and have taken some steps in the right direction.
If you answered Yes for 12-15 questions: You are in excellent financial shape. Keep up the good work!
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