Today I'm exited to share with you a guest post from my friend Jo at More Money Tips. She's created this awesome quiz to help you determine your money style.
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How are you managing your money? Are you a financial wiz? Are you trying your best to save as much money as you can?
Life can throw many curve balls without warning. How do we know if we’ve handled different financial situations to the best of our ability?
To answer this question, take this quiz and have some fun with hypothetical scenarios.
Find out more about your financial self. Then use this knowledge to grow your financial wisdom.
Are you ready? Circle only one answer for each scenario.
Scenario 1
For months you’ve been saving up a down payment for a new car. You visit the showroom and view the car of your dreams. Everything’s perfect - the color, features, and the test drive.
What would you do next?
A. Negotiate a better deal and sign on the dotted line - the monthly installments are affordable.
B. Tell the salesperson you’ll have a think. You then research into how popular the make is and how much it would be worth as a used car several years later.
C. Check out the prices for used cars of the same make and model. Knowing prices will help you decide to buy either the new car or a used one.
Scenario 2
You haven’t gone on a vacation for 8 years. You’ve worked hard to pay down your home mortgage. Feeling stressed out, you really need to go away. You have some cash for a vacation.
What would you do?
A. Postpone the vacation and focus on paying off your mortgage.
B. Find an alternative holiday destination that costs much less than the one you have in mind.
C. Decide that you’ve earned a dream vacation. Take a loan and reward yourself with the holiday.
Scenario 3
You promised your little girl that she can have a Dalmatian for Christmas. She has waited patiently for nearly a year. Christmas is approaching, but unexpected payments have suddenly cropped up.
What would you do?
A. Explain to your child that she’ll need to wait longer to get her pet dog.
B. Take up pet financing as you can’t go back on your promise.
C. Explain the situation and persuade your child to visit an animal shelter to adopt an affordable pet.
Scenario 4
A good friend has asked you for an urgent loan. The loan would amount to most of the emergency fund that you’ve carefully saved up.
What would you do?
A. Tell her you’re sorry that you can’t help.
B. Do some research and direct her to agencies that may be able to help.
C. Lend her the money.
Scenario 5
You’ve been budgeting nard. You’ve finally going to clear all your credit card debts. Recently you’ve been invited to three major social events that require quite a lot of spending.
What would you do?
A. Decide not to attend any of the events.
B. Attend just the cheapest event.
C. Attend all three events, telling yourself that your credit card debts can wait.
Scenario 6
You haven’t visited your mother for a decade. She lives in another country. The visit will mean spending $3,000. Your income is low and you’ve just gotten into the habit of saving furiously.
What would you do?
A. Use most of what you’ve saved so far and borrow the rest to pay for the trip. After all, you haven’t seen her for a long time.
B. Keep postponing your visit indefinitely, as you want to save as much as possible.
C. Set a target amount of $5,000 to save and once you’ve reached it, use the $3,000 to pay for your visit.
Scenario 7
You’re ready to start college. Despite the need for a student loan, you’re very keen.
What would you do?
A. Study History and the Classics as you’ve always had a passion for them.
B. Study Accounting or Computing as they offer better job opportunities.
C. Study Agriculture or Horticulture, as you come from a family of farmers.
Scenario 8
You’ve succeeded in saving a tidy sum of money. How would you use that money?
A. Pay down as much of your mortgage as possible.
B. Use most of the money to trade on the stock market.
C. Keep most the money in a savings account to earn interest.
Scenario 9
Someone had a windfall of more than a million. She lives with her husband and a pet (This is a real-life example. Find out later what she actually did with her money.)
What do you think she should do?
A. Embark on luxury travels to see the world.
B. Buy a large and luxurious property with breathtaking views over the city and sea.
C. Continue living in her present home and use that windfall to invest.
Scenario 10
A friend bought land worth $200,000 on a hill. Several years later, he tried to sell the land due to high building costs. But it was difficult to get it sold. Someone offered to buy it, but my friend would lose $54,000. (Another real-life scenario. Find out what happened).
What do you think he should do?
A. Sell it and cut losses. Use the money to buy a very old and tiny property in a blue-chip area.
B. Hold onto the land until he has saved enough money to build a house on it.
C. Keep the land to avoid selling at a loss.
Score:
Points are given for each answer that you’ve chosen. For example, If you chose A for Scenario 1, you get 1 point.
Scenario 1:A.1 B.2 C.3
Scenario 2:A.2 B.3 C.1
Scenario 3:A.2 B.1 C.3
Scenario 4:A. 2 B.3 C.1
Scenario 5:A.2 B. 3 C.1
Scenario 6:A.2 B.1 C.3
Scenario 7:A.1 B.3 C.2
Scenario 8:A.3 B.1 C.2
Scenario 9:A.1 B.2 C.3
Scenario 10:A.2 B.3 C.1
What’s your score?
10-16 Think more about making decisions that will increase your chances of moving ahead financially.
17-23 Many of your decisions are good for your finances. Think about how you can consistently make good financial decisions.
24-30 Congratulations! You are making sound financial decisions that will stand you in good stead. You can look forward to financial freedom earlier than most folks.
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What they decided to do in the two real life scenarios:
Scenario 9
Someone had a windfall of more than a million. She lives with her husband and a pet (This is a real-life example. Find out later what she actually did with her money.)
She bought a large and luxurious property with breathtaking views over the city and sea.
Scenario 10
A friend bought land worth $200,000 on a hill. Several years later, he tried to sell the land due to high building costs. But it was difficult to get it sold. Someone offered to buy it, but my friend would lose $54,000. (Another real-life scenario. Find out what happened).
He kept the land until he had saved enough money to build a house on it.
Related post: 20 Frugal Tips to Save Even More Money - Part 2
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