6 Steps to Reach Financial Freedom: Step 1


Financial Health Test

Your overall financial health consists of many elements, from learning how to live within a budget, to building good credit, controlling debt and excess spending, developing short and long-term financial goals, and learning to invest wisely. It may seem like a lot to master, but you may be surprised to discover that you’re already in good shape, based on your involvement in your household financial activities.

Take the brief quiz below to get an idea of where you stand with your own financial health and pinpoint areas where you may need more work. Simply answer yes or no to the following questions, and keep track of your answers to determine your quiz results once completed.

Welcome to your Financial Health Test

I can easily locate the paperwork and documents for all of my insurance policies, investments, and deeds for my car(s) and home(s).

I know the total value of my net worth–including my savings, investments, home equity, etc.–updated on a quarterly basis.

I know approximately how much I spend on utility bills and other staples each month, and am able to stay within a specific range.

I have established a maximum amount I may spend of my discretionary income each month and stay strictly within that limit.

I always have a target limit in mind of what I can afford to spend on a daily basis, such as when I shop at the supermarket, drug store, the mall, or go out for lunch or dinner.

I have at least one utility registered in my name and at least one credit card under my name alone–not as a joint account.

I check my credit rating at least once every three years and before every major purchase, such as a car or home.

I have closed all credit card accounts that I do not regularly use.

I have paid off all outstanding debts and any other blemishes on my credit report, and am current to date on my payments.

I have consolidated the majority of my debt into just one or two payments a month with low interest rates.

I have at least three to six months worth of living expenses saved in case of an emergency.

I have a percentage of my salary deferred to a long-term retirement account each paycheck (either I do this myself or it is automatically deducted by my employer).

I have established three short-term financial goals, such as saving for a car, vacation, or a Christmas account.

I have established three long-term financial goals, such as saving for a downpayment on a home, investing for my child’s college education, or retirement.