What is Your Financial IQ?

It’s time to get serious about your finances. But, first, you have to figure out how much do you really know about your money?  Take this short quiz to find out:

When it comes to spending I

    1. Overspend
    2. Am Frugal
    3. Spend Just the Right Amount

When it comes to spending, my spouse

    1. Is An Over spender
    2.  Is Too Frugal
    3. Spends Just The Right Amount

Our biggest area of financial deficiency is our

    1. Retirement Planning
    2. Education Saving
    3. Emergency Savings
    4. Ability to Balance the Budget
    5. All of the Above (and more)

Our family budget is done by

    1. Me
    2. My Spouse
    3. Both of Us
    4. What Budget?

Our checkbooks are held

    1. Individually
    2. Jointly
    3. A Combination of Joint and Separate Accounts

The final decision over important financial matters are handled by

    1. The Husband
    2. The Wife
    3. Whoever Makes More Money
    4. Together as a Couple

Our day-to-day expenses are managed by

    1. The Husband
    2. The Wife
    3. We Alternate
    4. No One Really

Our Investments and Savings Are Handled By

    1. The Husband
    2. The Wife
    3. Both of Us

Our Bills Are Due On

    1. The First of The Month
    2. The End of the Month
    3. Whenever a Second Notice Arrives

Are you beginning to see a pattern here?  Before we can begin to discuss the importance of budgeting and helping you establish a more satisfying wealth management plan for your family, you have to come to terms with your own responsibility for your family’s financial success.   If, after answering these few questions you realize that one person in the household is taking the brunt of the responsibility for taking care of your family’s money and bills, it’s time the other gets involved.  No one can follow a plan they have no control in creating in the first place.

Before working on a  financial plan, go over your financial situation.  Get to know the bills you owe (and when they’re due); what accounts you have open; what goals you have for the future; and anything else you deem important for your financial future.  If you have a partner, here are a few money habits to discuss:

  1. where you stand financially (how much you owe; what assets you have; whether or not you are behind in any payments, etc.).
  2. what you own free and clear (if anything)
  3. what bank accounts you have open (are they balanced?)
  4. what your credit report looks like (we’ll talk more about that soon)
  5. your savings habits (if any)
  6. your spending habits (be honest now)
  7. your attitudes and values about money

Once you have established a solid knowledge base about your whole financial picture, then (and only then) will you be able to successfully develop a plan for your financial future.

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