So this was a fun post from Budgetsaresexy. I recommend killing a few minutes and seeing where you end up. My answers are below. Have fun!
Here we go…. Answer “Always”, “Sometimes,” or “Never” for each of the following statements, and then see below for the answer key. Come on Warren Buffett, come on Warren Buffett!!
#1. I pay my bills on time.
1) Always – Back in the “dark ages” I would play the, “which bill REALLY needs to get paid today”, but in my wiser days, I never miss a bill. The stress of missing a payment wouldn’t let me sleep for weeks.
#2. I save 10% or more of my income each month.
2) Always – We are consistently at 35-40% of gross. I’d love to get that up to 50-60%, but honestly, neither my wife nor I currently have it in us. If we can get some more passive income streams than maybe, but we are on a good balance of frugal vs enjoyment. And yeah, DCA rocks. We take the same amount out every month at the same time and put it in the brokerage account. That, and all pre-tax stuff goes straight to retirement (401k and IRAs). If there is extra it may go there too or to some other more “exotic” investment, but rain or shine, that fixed amount goes in.
#3. I keep three months net income in a “rainy-day fund.”
3) Always – But I think I need to qualify that. Rainy-day means cash or equities not designated for long-term holding. If we get too much in the bank, it’ll go into some type of ultra short term fixed-interest or a fixed-interest etf or something that we don’t mind liquidating if something comes up. Cash in the bank is tough right now. Add inflation and you are losing money.
#4. I plan ahead and save for large expenses.
4) Always – Ask my wife, I hate making big purchases. I can nickel and dime my way to the poor house, but it will take me a year or more to buy a car. Weird. So this Always is to a fault.
#5. I set and keep financial goals for myself on a regular basis.
5) Always – We have so many goals it hurts. Monthly savings, yearly NW growth, 5yr projections, FIRE goal, inheritance (for the kiddos) goal, and on and on. I love spread sheets. They make obsessive goal setting and tracking far easier.
#6. I follow a set budget each month.
6) Sometimes – We have a yearly budget that is fixed at the beginning of the year and then we use an adjusted budget that tracks 3m averages of actual expenses versus the yearly budget. As you mentioned, NW tracking is the biggie. If we are in the ballpark for expenses it is usually fine. The savings number is the important one.
#7. I shop around and compare prices before making a major purchase.
7) Always – OMG, between my wife and I we could do this for a living. I have excel on my phone and, true story, I did a quick spreadsheet in the grocery store of spinach prices by store and by weight or packaged. It was awesome.
#8. Regularly check my credit report.
8) Always – I had s**tty credit for some time and I protect my now, “excellent” score like a third child.
#9. I examine my checking account statements each month.
9) Always – I use my checking account and credit card statements to develop actuals for that 3m budgeting. See #6.
#10. I look for ways to become more financially aware and educated on a regular basis.
10) Always – Come on… I am reading, and responding in length, to a financial quiz on a blog called budgetsaresexy. So yeah, I’m lookin’.
Yes. I have problems, but I’m not the only one 🙂
How’d you do?? Mostly good? Some trouble spots here and there?
(2 points for every “Always”, 1 point for every “Sometimes”, 0 points for each “Never”)
- 15 points and up = Warren Buffett!
- 10 to 14 points = MC Hammer (I feel like he should be last? Didn’t he go bankrupt??)
- 9 or less points = Macaulay Culkin