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FOOL'S EYE VIEW
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Despite being on paternity leave at the moment, I'm still struggling to find the time to do everything that I want to do before I return to work. For example, I was keen to watch Mind of a Millionaire on BBC2, but I've managed to miss the first two episodes. However, I have taken the BBC's quiz, which was interesting! Anyway, this quiz got me thinking about my own good (and bad) money habits, which led to me to design the following test. Although in many ways it's only a bit of fun, it may encourage you to examine your relationship with money more closely, which is always a good thing! Will You Be Rich? Examination Take as long as you need to complete this paper. You must answer all ten questions. Show all your calculations. Do not confer with other candidates. No muttering or mumbling while you work. Be afraid, be very afraid! Question 1: How often do you have money left over just before payday? A. Always – I like to live below my means. Question 2: How often you bargain for a better deal? A. Always – I like to haggle, even if I only end up saving a fiver or so. Question 3: How much effort do you put in to saving money on insurance each year? A. Several hours – it's worth taking a bit of time to save hundreds of pounds. Question 4: How often do you compare gas and electricity suppliers in your area? A. At least once a year – it only takes five minutes to see if I'm paying too much for fuel. Part Two: Borrowing and saving Question 5: How often do you pay off your credit and store cards in full? A. Always – they're a convenient way to pay, but the standard interest rates are a rip-off. Question 6: Apart from your mortgage, how much personal debt do you have? A. None – by my reckoning, overdrafts, personal loans, credit and store cards all cost too much. Question 7: How much emergency money do you have on deposit? A. Plenty – my emergency fund is never less than three months' salary, and usually more. Part Three: Pensions and investments Question 8: How often do you put money into your pension? A. Every year – I want a comfortable retirement and I've decided to rely on myself to provide it. Question 9: Which of these investments would you use for long-term savings (money you won't need for at least ten years from now)? A. Shares – I know that shares have beaten all other mainstream investments over long periods. The big question Question 10: How in control of your money do you feel? A. Completely – I've learned some good lessons along the way and have my money well under control. How did you do? Award yourself ten points for every 'A', five points for 'B's, and null points (nothing, nowt, zilch and zero) for 'C's. If you scored 75 to 100 Congratulations on being in control of your money! Clearly, you've got what it takes to get rich slowly. You're maximising your income and minimising your expenses in order to strengthen your 'personal balance sheet'. Also, you've learned that staying out of the red and keeping in the black gives you more money to save and invest. Give yourself a well-earned pat on the back for being a true Fool! If you scored 50 to 70 You're getting there, but you're not a money master quite yet. If you're going to be well off in the future, you need to get more bang from your bucks. Make a list of where all your money goes, then invest some time in cutting back on your expenses. Perhaps saving tax could boost your wallet or purse? A few extra hours of effort could save you thousands of pounds every year, which equals fat cat wages! If you scored 25 to 45 Oh dear, your Money School report says 'Could do better', but you're not without hope. Take a piece of paper and create two columns headed 'Good' and 'Bad'. List your money habits under these columns, and then work on strengthening the good habits, while eliminating the bad behaviour. With money, a little bit of knowledge and self-belief go a long way... If you scored 0 to 20 Oh dear, you are in a pickle, aren't you? Although you'll probably find it quite stressful, take some time to figure out where your money problems lie. Do you have Champagne tastes and a beer income? Do you need to learn how to get out of debt? Do you worry about what would happen to you if you were out of work for a while? Cheer up: if you begin to turn the corner now, you could be on the road to financial recovery within a month! More: Save money on Credit Cards | Insurance | Mortgages | Investments | Fuel
Part One: Budgeting and spending
B. Sometimes – though I occasionally run short at the end of the month.
C. Never – I'm still overdrawn even after my salary been paid in!
B. Sometimes – I do try to negotiate when buying 'big ticket' items.
C. Never – I prefer to pay the highest possible price for everything I buy.
B. An hour or two – I make some effort to find lower premiums.
C. None – I can't be bothered, so I just accept my insurers' premium increases every time.
B. Rarely – I looked into it once, then switched and forgot all about it.
C. Never – it's not worth an hour of two's work just to save about £150 every year.
B. Sometimes – and I hate it when I get walloped with an interest bill.
C. Never – I like paying annual interest rates of up to 32%!
B. Some – but less than three months' wages.
C. Lots – three months' wages or more.
B. Some – but I'd be in serious trouble if I wasn't earning for more than a couple of months.
C. None – I don't have a cash cushion to help me to cope with life's rainy days.
B. Some years – I put money away when I can, but it's not a priority.
C. Rarely or never – I trust the government to keep me in clover when I'm old and grey!
B. Bonds – I want a reasonable income, but am wary of getting burned by shares.
C. Cash – I don't like taking any risks with my money, so I keep it on deposit or under the mattress!
B. Partly – I'm learning, but I've high hopes for my financial future.
C. Not at all – thinking about money makes me break out in a cold sweat!