How Close Are You To The Financial Edge?

by Hank

I remember standing on the financial edge and looking down into the precipice. I can remember sleepless nights because of the amount of credit card debt I had after college. I can remember worry and the angst because of the debt that I had hidden from my wife. I can look back now and be thankful that I am through that point in my life, and it is definitely a place that I never want to go back to again. I can also remember kidding myself that I wasn’t in as much trouble as I actually was. I was in denial. I almost waited too long to seek help.

How close are you to the financial edge? To help you find out, here is a little quiz that originally appeared in part in the LA Times.

  1. How much do you have in an emergency fund?
  2. A)   3 months
    B)   6 months
    C)   8 months or more
    D)   Less Than 3 Months

  3. How often do you fight with your spouse about money?
  4. A) Frequently
    B) Sometimes
    C) Never
    D) All the time

  5. Consumer Debts equal how much of your take home pay? (car loans, student loans, credit cards, etc.)
  6. A) 20%
    B) 15%
    C) 10% or less
    D) Over 20%

  7. How concerned are you about your finances?
  8.  
    A) Occasionally concerned
    B) Largely in control
    C) Never a cause of worry
    D) Can’t sleep at night

  9. Do you make larger payments that your monthly minimums on your credit card bills?
  10. A) Sometimes
    B) Most of the time
    C) Pay it off every month
    D) Never

  11. Do you spend less than you make every month?
  12. A) Sometimes
    B) Most of the time
    C) Pay it off every month
    D) Never

    Scoring…

    Give yourself 5 points for every A answer
    2 points for each B
    1 point for each C
    10 points for each D answer

    Total your points and assess your score below.

    45-60: Danger zone: You are on the financial edge!

    30-44: Teetering: You may be doing alright for now, but you are teetering on the edge of trouble.

    15-29: Healthy and Happy: You are doing good, but there is still room for improvement.

    0-14: Very, Very Good: You are looking very good to handle most issues that can come your way! Keep it up!

    How did you do?

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