Do you follow a fixed budget for monthly expenses?
- a Yes, follow it strictly
- b Sometimes budget is missed
- c Planning to draw up a budget
- d Don’t need a fixed budget
How often have you dipped into your retirement savings?
- a Never. They are for the long term
- b Once or twice, due to emergencies
- c Quite often, to fund expenses
- d Have no retirement savings
How much of your monthly income do you save for retirement?
- a More than 20%
- b Between 10% and 20%
- c Less than 10%
- d Not able to save
If faced with an emergency expenditure, what will you do?
- a Have an emergency fund for that
- b Liquidate some investments
- c Take a loan from a bank
- d Will have to borrow from friends, relatives
How long can your emergency fund sustain your expenses?
- a More than a year
- b About 6-8 months
- c Less than 6 months
- d Don’t have an emergency fund
How big are your outstanding loans?
- a No loans outstanding
- b Less than 3-4 months’ income
- c About one year’s income
- d More than 2-3 years’ income
Do you have medical insurance cover?
- a Self bought plan and group cover for self and family
- b Self bought insurance for self and family
- c Only group cover from employer
- d No medical insurance
How much is your total life insurance cover?
- a More than five times my annual income
- b Equal to 1-2 years’ income
- c Less than annual income
- d Don’t have life insurance
Score yourself on the following basis:
- a 3 points
- b 2 points
- c 1 points
- d 0 points
Also Read:
Follow these 4 steps to achieve financial freedom
Then add up the scores to know where you stand
Above 20 points
Congratulations. You have covered all your bases and are on your way to financial freedom. Continue on the same path.
15-20 points
You are doing well, but need to fi x some chinks in your financial armour. Once you do that, you can be financially free.
8-14 points
You are a borderline case and need to make changes in your financial plan. Try and save more, buy insurance and don’t rack up too much debt.
Below 8 points
Your finances are in a precarious state. Unless the problems are fixed, you won’t even reach your financial goals, leave aside financial freedom.
