1.
I know the current net worth of our/my household (i.e., the value
of the assets I have minus the liabilities I owe).
2.
I have a solid grasp of what my fixed monthly overhead is, including
property taxes and all forms of insurance.
3.
I know how much life insurance I carry (and my partner).
I know exactly what the death benefits are, how much cash value there
is in the policies (if any), and what rate the money is earning (if
applicable).
4.
I have reviewed the life insurance policies sometime in the last 12
to 24 months, and I am comfortable that we are paying a competitive
rate in today's insurance market.
5.
I know how much I pay in rent, when the lease expires, how much of
a security deposit I gave the landlord, and what renewal rights I
have.
6.
I know what type of homeowner's or tenant's insurance
I have and what the deductibles are. I also know whether or not my
policy would provide me with "today's replacement cost"
or actual cash value, if my home and/or property were destroyed or
stolen.
7.
I know the nature and size of all of my investments, including cash,
chequing accounts, savings accounts, money-market accounts, GICs,
treasury bills, savings bonds, mutual funds, annuities, stocks and
bonds, real estate investments, and collectibles such as stamps, coins,
artwork, etc. I also know where all the relevant paperwork is kept.
8.
I know the annualized returns of all the above-mentioned investments.
9.
I know the current value of all of my retirement accounts, including
RRSPs, RESPs, company pension plans, etc. I know where the statements
for these accounts are kept and I understand how all the accounts
performed last year.
10.
I know what percentage of my income I am saving.
Scoring:
Every
time you answered "True" give yourself one point,
and zero for every time you answered "False."
7
to 10 points. Excellent! You obviously have been
planning, as a result of which you have a good grasp of the
state of your finances.
4
to 6 points. You are not completely in the dark,
but there are some areas in which your knowledge is less than
adequate.
Under
3 points. You rarely think about your finances and
financial goals for the future. As a result, you are running
a big risk of being hurt financially because of insufficient
knowledge. You must learn how to gain control over your finances
to protect yourself from future financial disaster.
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