Becoming financially free is not as simple as it may sound. You need to have discipline, patience and proper financial education to be able to achieve it. In relation to this, you also need to know what your condition is when it comes to financial wellness.
Take the test below and find out how fit are you right now when it comes to your finances.
Get a sheet of paper and write your answers to the following questions:
Financial Fitness Test
- Do you have enough savings to last you 6 months?
- Do you have a form of insurance, for example, accident or disability or life insurance?
- Do you have any form of medical insurance?
- Do you have any long-term savings plan such as pension or educational plan or any endowment plan aside from your contributions to SSS or GSIS?
- Are you saving or investing money regularly from your salary?
- Do you know how much you are worth today? Do you have your own Statement of Assets and Liabilities?
- Do you budget your spending and monitor your monthly expenses?
- Have you attended any seminar or read any book on improving your knowledge of personal finance?
- Is your monthly debt payment (for consumption purchases or credit card payments) every month less than or just about 20% of your monthly income?
- Do you have a personal plan with specific financial goals based on specific timetable?
Scoring for Financial Fitness Test
Yes = 10 Points No = 0 Point
0 – 40 Points: You are financially unhealthy. You will face serious danger the moment you lose your source of income. You need to review your expenses, particularly your debt payments. You have to stop all unnecessary expenses right away.
50 – 70 Points: You are in good position to be financial healthy. You just need to improve your financial plan. First, determine the personal net worth you want to have when you retire. Ideally, you should break down this target every 10 years. This means that you have to choose the lifestyle you want to maintain. Second, estimate how much you will need every year to sustain this lifestyle.
80-100 Points: Congratulations! You are on your way to financial independence. You have the commitment and the discipline to achieve your financial well-being. Keep it up and don’t fail to exert effort to learn new things about how to further achieve your financial goals.
What score did you get? Feel free to share them on the comments below.
(This test was taken from Francisco Colayco’s book: Making Your Money Work (Pera Mo, Palaguin Mo! 2). Grab a copy now!) ^_^
P.S. Should you want a FREE Sample Proposal: Life Insurance and Investment Plan; Click HERE
I hope this article taught you something about how to achieve success.
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I Struggle, I Win!