How Financially Independent Are You?
Select the answer that most closely reflects your financial habits.

1. Which statement best describes your philosophy for spending?

A	Life without credit is no life at all – I couldn’t live with out my credit cards, line of credit and over draft!
B	I use my credit card and over draft when necessary but I’m on top of paying them off.
C	I have a cash lifestyle - if I don’t have the cash, I don’t have the lifestyle.

2. When you get your credit card bill you:

A	Throw it on the pile - bills get paid when money shows up.
B	Call your parents - they still pay that bill.
C	Pay it off in full – on time every month.

3. When you get your investment statement you:

A	Investments – what investments?
B	File it away to ask your spouse, parent, advisor (or someone else who knows how to read it) about it later.
C	Review it, understand it, and assess how your current investments are serving your investment goals.

4. Which statement best describes your philosophy for saving?

A	I plan on saving money just as soon as I have some to save.
B	I put money into savings when I can but it is currently less than one month of my salary.
C	I save a specified amount every month, it comes out of my account automatically.

5. Whether or not you have children, imagine that you are a role model and finish this sentence: “By watching how I deal with money, children would learn …

A	That no matter what you do you can’t get ahead.
B	That parents will always bail children out financially.
C	To prioritize spending, save for short and long term goals and remember charity.

6. Your car, or washing machine, or some other major thing dies unexpectedly and you have to replace it. You:

A	Go straight to the dealer with the best financing options – don’t pay a cent for a year sounds good to me!
B	Put it on the line of credit or borrow a bit of money and figure out how to pay for it later.
C	Use your savings or do without until you find a way to pay for it that fits with your cash flow.

7. When you think about your income and expenses you:

A	Quickly think of something else!
B	Panic, worry, wish it were another way.
C	Know that you are living the life you want with the money you have.

 

For every A give yourself 1 point. For every B give yourself 2 points, and for every C give yourself 3 points. Add up your score and write it down. CLICK HERE to see how you did.