About Me

I am A Chartered Certified Accountant who does a bit of gardening.
The Pictures of the flowering and non-flowering plants, fruits, vegetables, culinary & aromatic herbs
in this blog are of my garden.
Most of my garden collections are driven by the Fs: They either Flower, have a Fragrance, provide Flavor, bring Fruit, Food or are air Freshening.

Thursday, 31 October 2013

A simple way to measure personal financial fitness

One thing that is common with both Accountants and non-Accountants is that we all have a relationship with money, whether it is for better or for worse is another matter altogether. At the end of the day we all need to take stock of our money in order to:
  1. Know where our money comes from
  2. Know where our money goes
  3. Know our current status
There is a useful site that helps with the third one but also help with thinking about the first and the second by taking a 'Financial Fitness Quiz'. http://njaes.rutgers.edu/money/ffquiz/

A friend gave me a simpler version of the quiz and I thought it is worth sharing. She called it 'The Personal Finance Scoring Quiz'. Do you want to know your status in less than 5 minutes? take the Quiz below:)

Answer this quiz to establish how well you are managing your credit and personal finances by stating a score to each quiz.
       NEVER:               0 point
       SOME TIMES:    1 point
       FREQUENTLY:  2 points

       I have enough money each month to pay my rent and other household expenses?  
       I have enough money to pay for emergencies such as medical bills, car repairs etc?
       I have written financial goals with a date and cost attached ?
       I have a written budget for spending and saving my money?.
       I keep organized financial records and can find important documents easily?
       I calculate my net worth (assets minus debts) annually?
       I save regularly for long-term financial goals, such as education for my children, a house, or retirement?
       I have at least three months' expenses set aside in a readily accessible account?
       I increase my savings when I receive a salary increase?
       I have a personal investment account for retirement other than a pension funded by my employer? 
       I have money spread across more than one type of investment? (e.g. shares, land, bonds, and treasury bills, a business)
       I pay my bills and debts on a regular basis?
       I teach my family about the value of money and how to manage it?
       I manage and monitor the consumption of groceries in my house?
       I know my purpose in life, what I want to achieve and have written it down?

20 – 30: – You are an A+ candidate – You are Financially Resilient  and excellent personal money management.

10 – 20: - You have some weaknesses and need to work towards  building capacity to overcome them. You are in a position that may lead you either way – financial resilience or financial Fail.  

0 - 10:  You are heading for a nose dive towards the unknown. You need to do something urgently!

Well if you are not pleased with your score, there is still hope! Here is a link to a plan on how to improve your score How to improve your personal financial fitness score

Money, like "a garden requires patient labor and attention. Plants do not grow merely to satisfy ambitions or to fulfill good intentions. They thrive because someone expended effort on them." Liberty Hyde Bailey