- If all your friends are going out to eat, and you want to go but have already spent your eating out budget for the month, do you let the FOMO (fear of missing out) take over and go anyway?
- Heck yes! I’m not going to miss a night out with friends.
- I might go, but I’d make sure to spend less in another category to compensate.
- No, I’d love to go but I can’t afford it. I’ll watch a movie with them when they get back instead.
- Do you carry a balance on your credit card?
- Yes, my balance is usually 500+ each month.
- Sometimes. I usually only have $50-$200 carry over though.
- Hardly ever.
- How much of your income do you save monthly?
- A…little? $100 here and there.
- Around 5-10%.
- Do you have an emergency fund?
- No, I don’t like to worry about things that may not occur.
- I have a little bit saved, about $1000.
- Yes, I have over $2,500 saved for unexpected expenses.
- How much money do you have left at the end of the month?
- Less than $200.
- Over $200.
- When is the last time you paid an overdraft fee?
- Within the past month.
- Within the past 3 months.
- Within the past year.
- Do you have a budget?
- Nope, I spend as I go.
- I made one, but I don’t follow it too closely.
- Yes, and I follow it and make needed adjustments over time.
- What is your credit score?
- Below 600.
- Between 600-700.
- Over 700.
What do your results mean?
Mostly A’s: You may be an over-spender and live outside your means. Your results indicate that you are carefree when it comes to your money. You spend as you go and don’t like to stress over the details. Although this can be a good strategy for some, for many it can lead to debt and heartache. You may find it valuable to analyze your current spending patterns and find areas you can improve. One way to do that could be creating a budget for yourself.
Mostly B’s: You are conscious of your spending but live on the edge of your means. Although you likely don’t live paycheck to paycheck, you definitely can improve on your personal finances. One way to do this could be setting a goal to save 20% of your income each month. This figure is often recommended by experts because it helps set people up for financial success.
Mostly C’s: You are a bit of a money nerd. You have a budget you live and die by, you follow Dave Ramsey on Instagram, and you love spreadsheets. You ensure you have enough money for necessities and avoid debt like the plague. You have set yourself up for success, however, everyone can improve on something. For you, it may be relaxing a little. Try and allocate some of your money for fun things, even if it’s just your spare change.