To help you get a quick idea about the state of your personal finances, answer these quiz questions and you'll get a snapshot of how healthy your finances are (not to worry--nobody will be watching you work out). It's kind of like getting your cholesterol checked. In just a few minutes you'll know if you're doing okay or if you should trim the fat from your financial diet to get your finances in shape.
by Stacy Francis, CFP®, CDFA
Leaving the organic produce store yesterday, a flier on the revolving glass door caught my eye. It was entitled “HEALTH CHECKUP: Do You Have the Supplement Basics Covered?” and listed five types of supplements - multivitamins, enzymes, probiotics, fatty acids, and green vegetables - as the foundations for good health. Not only is it nice to know that I take all the necessary measures to ensure my physical well-being, this also translates very well to financial health.
Do you have the personal finance basics covered?
Do you make more than you spend? Are you able to pay all your bills in full, on time, or do you need to make more and/or spend less?
Do you have an emergency fund? Do you have enough money to cover six months worth of expenses, and is this money easily accessible?
Are you in the black? Do you pay off your credit cards in full every month? If not, draft a plan to get rid of those balances!
Have you thought about retirement? Do you have a 401(k), Roth IRA or similar, and do you contribute to it regularly?
Have you protected yourself against disaster? Do you have the insurance coverage you need, including medical, disability and homeowner’s insurance?
Yes on all? Congratulations! Chances are you’re in great financial health.