Spending more than you should? Take this quiz
Posted on: 11:14 AM IST Nov 06, 2008
Today, its easy to get swayed by flashy advertisements and buy products you dont need.
Thanks to the EMI culture, we can make any purchase, expensive or cheap. And in the bargain, all our savings and budgeting plans take a backseat.So, how do you know if you are saving enough? And whether your budget is in tune with your financial goals?Take this quiz to find out if you are a spendthrift or if you are on the right track.Answer in a Yes or a No for each of the following questions:1. Have your cheques been bouncing off late, due to insufficient funds in your bank account?2. Have you faced a situation where you want to take a loan but the bank is hesitant because your credit rating is poor?3. Are you saving less than 15 per cent of your monthly salary?4. Are you buying most things using your credit card and revolving the balance month after month?5. Do you have four credit cards and are borrowing from one card to pay the outstanding balance on the other three?6. Are more than 30 per cent of your monthly earnings going towards EMIs on loans?7. Do you have regular nightmares of losing your job?8. Do you have a tough time arranging for funds for even small things, for example, having to replace your car tyres?9. Do you visit your parents for a 10-day vacation so that you can save some living expenses?10. Have you dipped into your parents' kitty for your car purchase or for your marriage expenses?PAGE_BREAKIf most or all of your answers are Yes:You are definitely spending more than what you should. Your financial health needs immediate attention. You can take corrective measures such as:1. Make a monthly budget and stick to it.2. Cut down on your borrowings.3. Take an insurance cover to provide for contingencies.4. Keep an amount aside for emergenciesIf most or all of your answers are NoCongratulations. You have managed to keep a fine balance between your earning and spending.Here are some tips on investing and managing your money:1. Invest based on your risk profile.2. Diversify your investments across assets, in order to keep a balance between risk and returns.3. Plan your retirementDisclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.