Sunday, March 7, 2010

How Healthy Is Your Budget?

Take FINANCIAL IQ TEST: How Healthy is your Budget? at WiseBread.

Find mine answers below.

Budget Maintenance / Awareness
I plan ahead for large expenses like repairs, appliances, or periodic bills. - Yes

I amortize annual expenses over 12 months for budgeting purposes (I apply the same principle to other periodic expenses too, for example quarterly expenses are amortized over 3 months). - No

I record all my expenses (or have an accurate record of expenses through bank statements or the like). - Yes

Before I created my budget, I monitored my expenses over a few months to figure out what I spend. - Yes

I review my budget regularly for effectiveness and modify as needed. - Yes

My savings plan is an expense that is part of my budget. - Yes

Extra money like pay raises, bonuses, and tax refunds go directly into savings or to pay off debt. - Yes

Gifts and charitable donations are part of my budget. - Yes

If I anticipate that I’ll go over the budget in one category, I find the money from another category that month. - Yes

I have financial padding built into my budget for flexibility (and sanity). - Yes

I have allowances in my budget for unexpected expenses. - Yes

Holiday season festivities and birthday gifts don’t throw me off budget. - Yes

I know how much money I live on each month/year. - Yes

I balance my chequebook so I don’t go into overdraft. - Yes

I can account for all my spending. - Yes

I live within my means. - Yes

I don’t charge anything to my credit card unless I can pay it off in full by the due date. - Yes(No Credit Cards)

I pay all my bills on time. - Yes

My income is larger than my expenses. - Yes

Budget Lifestyle
I don’t allow myself to feel pressured by peers to spend money that I don’t have. - Yes

I don’t buy caviar (for example) unless it’s in the budget – even if it is on sale for half price. - No

I view my budget as a way to figure out what I CAN afford, instead of what I CAN’T. - Yes

I have a positive goal or vision to keep in mind (like being debt-free, or having a vacation) for times when the budget is tight or I start to feel deprived. - Yes

I budget for small rewards to keep me on track and motivated. - Yes

Everybody in the family participates in the budgeting process. - No

I had few NO's but still I scored well, how about you?

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