Thanks to the Los Angeles Times Business section writer Kathy M. Kristof. My score is 15 so I can gloat.
How close are you to the financial edge? To help you find out, here’s a 10-question multiple-choice quiz, developed with some guidance from the National Foundation for Consumer Credit and Clearpoint Financial Solutions.
1. The amount I have socked away in savings to handle emergencies could pay all of my living expenses for up to:
A) three months;
B) six months;
C) 8 months or more;
D) about an hour and a half, if I cut back.
2. My spouse and I fight about money:
A) frequently;
B) sometimes;
C) never;
D) through court-appointed lawyers.
3. Payments on my consumer debts — auto loans, student loans, credit cards and home equity lines of credit — amount to less than:
A) about 20% of take-home pay;
B) 15% of take-home pay;
C) 10% or less of take-home pay;
D) considerably more than 20% of my monthly paychecks.
4. When it comes to saving for retirement, I’m socking away:
A) 6% or a little less of income to get the company match;
B) 10% of my income;
C) the maximum allowed by the company plan;
D) whatever’s in the couch cushions. Seriously, who can afford to save for retirement?
5. My housing costs, including property tax (when applicable) and insurance, amount to less than:
A) 30% of my take-home pay;
B) 25% of take-home pay;
C) 20% or less of take-home pay;
D) more than 30% of take-home pay.
6. I make more than the minimum required payments on my credit cards:
A) sometimes;
B) most of the time;
C) always — I pay off the full balance each month;
D) never. If they demand $29.37, that’s what I’m paying and not a penny more.
7. I spend less than I make:
A) unless there’s a sale;
B) except in cases when I’m investing in something long-term, like education or a car that gets me to work;
C) always;
D) when I manage to work enough overtime.
8. My finances:
A) are an occasional source of concern;
B) are largely in control;
C) are never a cause of worry;
D) give me cold sweats.
9. I have enough insurance to cover medical costs:
A) as long as they’re not catastrophic;
B) for both me and my family;
C) and I have money set aside to cover co-payments and deductibles;
D) only if I never get sick.
10. I know my net worth and:
A) though it’s not what I want it to be, I’m working on it;
B) it’s good and growing;
C) I’m the typical millionaire next door;
D) it tells me I’m insolvent.
Scoring: Give yourself 5 points for each A answer; 2 points for each B; 1 point for each C; and 10 points for each D answer. Total your points and assess your score.
76-100: Danger zone: You are in the economic red zone. Get yourself to a credit counselor pronto. If you need help finding one, go to http://www.nfcc.org or http://www.aiccca.org. Both are national credit counseling associations that allow you to find a counselor in your neighborhood by hitting the “find a counselor” buttons on their home pages.
51-75: Teetering: You may be making your payments now, but you’re on the razor’s edge of trouble. It’s time to get serious about budgeting and saving. If you can’t do it alone, get help.
26-50: Healthy and happy: You’ve got adequate savings and good habits. Keep it up and you’ll be comfortably rich in no time, if you’re not already.
0-25: Go ahead and gloat: You are in an enviable spot, likely to be able to handle any economic emergency that comes your way. But you already knew that, didn’t you?
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