FOOL'S EYE VIEW
Make Your Money Work Harder

By Stuart Watson (TMFTiger)
May 7, 2002

Most of us work very hard to earn our daily crust. Once we've earned that money however, we seem more than happy to let it flop about the house and put its feet up. It should be working as hard as we do!

Here is a short Cosmo-esque quiz to help you find out just how lazy or hardworking your money is. For each answer that applies, add the relevant score to your total. If none of the answers apply for any particular question then you simply get zero points.

Your Mortage

• You had a mortgage but you paid it off early – 20 points
• You've paid off your mortgage but you didn't pay it off early – 5 points
• You have a mortgage and know what rate of interest you are paying – 5 points
• You know your mortgage is paying a competitive rate (within 0.5% of the best rate available) – 10 points

> Homeowning Centre

Your Cash

• You know what rate of interest you are getting on your savings account – 5 points.
• You know that rate you are earning on your savings is competitive (again, within 0.5% of the best rate available) – 10 points
• Your savings are offset against your mortgage or you have a current account mortgage – 20 points

> Banking Centre

Your Debt

• You have no debt, other than your mortgage – 20 points
• You know what rate of interest you are paying on your debt and you know how much debt you have – 5 points
• You have a set plan for paying off your debt as quickly as possible – 10 points

> Get Out Of Debt

Your Income

• On average you spend less then you earn each month over the course of the year – 10 points
• You know to nearest £1,000 how much you expect to save in the next twelve months - 10 points

> Financial Healthcheck

Your Investments

• You invest money on a regular basis but have no set targets – 5 points. You know what the average post-inflation return of the stock market has been over the last 80 years – bonus 5 points
• You have and are sticking to a long-term investment plan designed to ensure you have enough money to retire on (or whatever other goals you have set yourself) – 20 points

> Learn To Invest

So how did you do?

100 points – You've cheated!  It's not possible to get 100 points on this quiz.

95 points – You're irritatingly good at looking after your money. You should think about passing on your good habits to your family (without being too irritating, of course) or through our discussion boards.

65 to 90 points – You're doing very well. Where you fell short of maximum points will tell you where there is room for improvement. Follow the links provided for each question to learn how to improve your tally.

25 to 60 points – You've made a good start in that you're aware of where your money is going. But you don't always make sure you're getting value for your money. On at least an annual basis, make an effort to sit down and review your finances and check out what is on offer in the market. Best buy tables in the weekend broadsheets are a good place to get a feel for what is out there. The links above will help determine which deals offer the best value in your particular circumstance.

Less than 20 points – You need to get up to speed quickly as your bad money habits are costing you dearly. For starters, you need to find out just how much you are earning or paying on your cash and debts. Then you need you find out if it is competitive. Follow the links above.