Answer YES or NO or I DON'T KNOW to the following questions:
• Do you know your present financial condition or networth?
• Are you aware of the simple ways to increase your networth?
• Do you have enough savings to see you through six months of your present living expenses without new incomes coming in for you?
• Do you save money on a regular basis?
• Are you in control of your financial future?
• Do you feel you have sufficient permanent life pension coverage?
• Do you reconcile your bank statements monthly?
• Do you keep record of your monthly income and expenditure?
• Do you spend less than you earn?
• Do you avoid major credit purchase?
• Are you satisfied with the contribution from your investments to your total income, i.e., if you have any investments at all?
• Do you have well defined personal financial goals?
• Do you have any investments that help to reduce your taxable income?
• Do you diversify your investments?
• Have you planned for your children’s education?
• Do you have a financial plan that can make you retire in comfort?
• Do you ever consider how a will is prepared?
If your NO or I DON’T KNOW total:
- 0 - 4, you are in good shape. Keep it up.
- 5 - 8, you are on track. Try and improve.
- 8+ You need urgent financial prudence remedial action.
Source: Institute of Financial Planning.
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