Sometimes people will ask me to suggest a quick assessment of their funding to deal with the fundamentals. Normally, they continue to say: "We don't seem to be satisfied with our personal financial situation. I don't know," you mean, "You mean you seem to follow the pattern of acquisition, repayment, and regaining debt.. ....may be in the extension period? Although your income is more, now your financial situation is worse than five years ago? "They immediately replied, "That is it!"
Over the years, to help understand the basics of fund processing, I developed a questionnaire on 100 questions that I used as a couple of my lawyers; however, at the first meeting, I used a self-assessment checklist of 10 questions. To measure an individual's perception of money management. This list is unscientific; after years of interaction with couples of different ethnic, cultural, and financial countries, I developed it and proved it to be reliable.
In order to get a good assessment and maximize the benefits, I emphasize the need to answer each question honestly. I ask everyone to give them a [1] for "never or rarely", two [2] for "sometimes" and three [3] for "frequently".
- Do you work with goals, plans and budgets?
- Before you spend money, do you follow specific procedures to determine spending and affordability?
- Before spending, do you ensure that your main spending drivers [the impact of spending] are not saving money by using available coupons, discounts, offers or sales?
- Do you only use one credit card?
- Do you avoid borrowing holidays? Using a credit card instead of paying the full balance each month is a loan.
- Do you avoid borrowing anything other than buying a house?
- Will someone be responsible for handling your financial problems?
- Do you have the proper procedures to pay for the cash of major household assets ' purchase and replacement?
- Have you paid your credit card balance completely?
- Do you compare expenditures to plans and budgets?
Taking thirty [30] as the highest score, this is my explanation of the answer:
- 10-18 - Need attitude change
- 19-24 - Need average, more consistency
- 25-30 - above average, continue
10-18: Need to change attitude
Usually, you have multiple credit cards, and different accounts can get cash back; you are in debt, repay, rest, and then drift over debt. Sales, trading, financing arrangements, and the merchant and money parts of the Money Triangle will appeal to you, even though you didn't know it at first. You, friends, and colleagues may think that you are in good financial condition; however, you have not realized that the business has successfully allowed you to receive expenses based on financial incentives [financial engineering]. You don't decide to spend money based on lifestyle-based goals, plans, and budgets. In an informed or unaware situation, you spend time saving money. '
If you accept the sport with an open mind, don't worry; you will realize the need to change attitudes from financial engineering to lifestyle management. Again, you'll see the need for ongoing development and application, spending decision-making processes, and access to accounting partners. Otherwise, you will fall into the debt cycle. Change takes time, but through God's grace, you can break the debt model.
19-24: Need average, more consistent
You know that money management is lifestyle management; you have one or at most two credit cards, and you pay in full every month; you follow a specific spending decision process; you have a budget; merchants don't attract you through sales and transactions. Often, you have two challenges: general consistency, the lack of a plan to buy the next car, and the main asset of cash - the capital fund.
25-30: above average, continue
As with the previous categories, you know that money management is lifestyle management; you have a capital fund, an accounting partner, and you won't be caught by merchants. You have a credit card; however, like everyone else, you sometimes get into trouble; but in addition to the reduction in mortgages, you still have no debt.
The self-assessment checklist is not a panacea; however, it has proven to be an excellent assessment of an individual's financial attitude towards the family. It's a great platform that allows people to stop and think about the changes they need to implement [if any] to improve their personal financial processing.
Orignal From: Quick personal financial self-assessment checklist
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