Answer YES or NO or I DON'T KNOW to the following questions:

Personal Networth

•      Do you know your present financial condition or networth?

•      Are you aware of the simple ways to increase your networth?

Financial Security

•      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?

Financial Prudence

•      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?

Financial Planning

•      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?

Your Scores

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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