Doctors consistently recommend annual exams for early detection of health problems. So why not an annual exam for your personal finances?When's the last time you had a check-up to see if your bank account has the physique of an Olympic athlete or the shape of a slouching couch potato?
As doctors say, "What you don't know could harm you."
And in the case of personal finances, the same could hold true for people who hate financial planning!
Just as millions of people avoid exercising, a survey indicates that more than 70 percent of people don't use a financial plan to keep their personal finances in tip-top shape.
It's vitally important to have a financial plan in place. A blow to your finances, such as losing your job, is akin to being hit with a major illness. The healthier you are, the more quickly you will recover.
To help get a quick idea about the state of your personal finances take the following quiz. Take just 10 minutes to answer the following questions, add up your score, and you'll get a snapshot about how healthy your finances really are.
It's kind of like getting a reading on your cholesterol. In just 10 minutes you'll know if you're doing okay or if you should see a financial professional, who can trim the fat from your financial diet and get your finances back in shape.
1. Are you 30 or older? (Yes/No)
2. Do you have at least three months' of living expenses saved to cover emergencies? (Yes/No)
3. Are you participating in your company's 401(k) or pension program? (Yes/No)
4. Do you save or invest beyond your retirement plan and emergency fund? (Yes/No)
5. Do you know how much you need to save each month to retire at the age you would like? (Yes/No)
6. Do you have life insurance? (Yes/No)
7. Do you have adequate car insurance coverage? (Yes/No)
8. Do you have health insurance? (Yes/No)
9. Do you have insurance that covers disability (besides Social Security)? (Yes/No)
10. Do you have a will? (Yes/No)
