Savvy Spending Quiz

[MosJan]

Savvy Spending Quiz

 

http://moneycentral.msn.com/investor/calcs/n_spend/main.asp

[MosJan]

ResultsYour score is 20 out of a possible 100.Based on your answers, you may have a credit management problem. Review your answers and compare them with the correct answers on this page. Consider reading some of the articles in MSN Money's Manage Debt area, such as “10 Strategies to Reduce Your Debt” and “Budget Your Way to Financial Freedom.” You also may want to use the Debt Evaluation Calculator.

The correct answers are listed below for the questions you missed.Question 1: Go "all out," reasoning that your job is stressful and you need the relaxation, no matter what the cost. Correct Answer: You take vacations with money set aside in a separate account for leisure.

Question 2: Pay off all the bills that have been piling up since your last paycheck and find there's nothing left. Correct Answer: When you receive your paycheck you have money skimmed off the top for your 401(k) plan and various pre-tax spending accounts for medical and dependent care. You then put money in regular savings and college accounts for the kids. What's left is allocated among your budget items, with discretionary items, such as entertainment, at the bottom.

Question 3: Call to check the credit limits on all your cards and get in line early the first day of the sale. You plan to spend big. Correct Answer: Before you go to the sports store and spend, you think about what equipment you were planning to buy over the next year.

Question 4: Bank money market account. Correct Answer: Treasury bills, for the most part, offer the highest rate of return of the investment options offered.

Question 5: You take what you can get. Correct Answer: The best credit card strategy is one in which the rate is irrelevant because you pay the bill in full each month.

Question 6: You've noticed a pattern of spending when you’re happy or spending when you’re sad. Correct Answer: Ideally, you rarely make “impulse purchases.” Instead, you’ve mapped out what you’re going to buy in advance.

Question 7: 2 to 3 percent. Correct Answer: If you’re saving 10 percent to 15 percent of your net pay each month, you’re doing great. If you’re saving 50 percent or more, that’s incredible.

Question 8: About 40 percent. Correct Answer: Your debt ratio should be about 35 percent or less if you want to keep your finances under control.

Question 9: Promise yourself again that you will draw up a budget. Correct Answer: Go ahead and have that celebratory dinner. You earned it. But then readjust your budget and try to save a little bit more with your new higher income.

Question 10: Optimistic. You're buying lots of things and soon you'll be able to start saving. Correct Answer: If you know you’re meeting your objectives, you should feel confident. Optimism can breed unnecessary spending and a doom-and-gloom attitude won’t help you figure a way out.

Question 12: Get drunk. You're still paying for the 2000 holiday and your cards are charged to the limit. Correct Answer: Keep your holiday expenditures on a budget just like you do the rest of your expenses. Otherwise, you’ll be paying and paying and paying..

Question 13: Pay them once a month. Correct Answer: If you’ve set up your budget properly, your bills are already factored into your account and many of them are paid seamlessly.

Question 14: Plan the vacation you haven't had time for. Correct Answer: Getting laid off from work is never good news, but you need to anticipate the worst. If you have, you can sanely go about the task of finding new employment without undue pressure or financial worries.

Question 15: Arrange for lines of credit. Correct Answer: When you get that first job, draw up your first budget. Saving early and often pays big rewards.

Question 17: 40 percent stocks, 30 percent bonds, 30 percent Treasury bills. Correct Answer: Over the long term, stocks are your best investment bet. If you’re saving for several years out, put as much as you comfortably can into stocks.

Question 18: Go on a trip around the world. Correct Answer: The additional funds from an inheritance give you the luxury of becoming a bit more conservative in your investment strategy.

[Harut]

crap, it doesn't look good...

 

Results

Your score is 25 out of a possible 100.

Based on your answers, you may have a credit management problem. Review your answers and compare them with the correct answers on this page. Consider reading some of the articles in MSN Money's Manage Debt area, such as “10 Strategies to Reduce Your Debt” and “Budget Your Way to Financial Freedom.” You also may want to use the Debt Evaluation Calculator.

 

The correct answers are listed below for the questions you missed.

Question 1: Wait until the last minute and inevitably feel that you've spent too much and that it wasn't really worth it.

Correct Answer: You take vacations with money set aside in a separate account for leisure.

 

Question 2: Pay off all the bills that have been piling up since your last paycheck and find there's nothing left.

Correct Answer: When you receive your paycheck you have money skimmed off the top for your 401(k) plan and various pre-tax spending accounts for medical and dependent care. You then put money in regular savings and college accounts for the kids. What's left is allocated among your budget items, with discretionary items, such as entertainment, at the bottom.

 

Question 3: Stay home. You don't trust yourself at sales.

Correct Answer: Before you go to the sports store and spend, you think about what equipment you were planning to buy over the next year.

 

Question 4: Money market mutual fund.

Correct Answer: Treasury bills, for the most part, offer the highest rate of return of the investment options offered.

 

Question 6: You've noticed a pattern of spending when you’re happy or spending when you’re sad.

Correct Answer: Ideally, you rarely make “impulse purchases.” Instead, you’ve mapped out what you’re going to buy in advance.

 

Question 7: 2 to 3 percent.

Correct Answer: If you’re saving 10 percent to 15 percent of your net pay each month, you’re doing great. If you’re saving 50 percent or more, that’s incredible.

 

Question 8: 50 percent.

Correct Answer: Your debt ratio should be about 35 percent or less if you want to keep your finances under control.

 

Question 9: Promise yourself again that you will draw up a budget.

Correct Answer: Go ahead and have that celebratory dinner. You earned it. But then readjust your budget and try to save a little bit more with your new higher income.

 

Question 10: Optimistic. You're buying lots of things and soon you'll be able to start saving.

Correct Answer: If you know you’re meeting your objectives, you should feel confident. Optimism can breed unnecessary spending and a doom-and-gloom attitude won’t help you figure a way out.

 

Question 11: Accept. You'll figure out the details later.

Correct Answer: Yes, it’s painful to turn down that getaway weekend. But if you don’t have the money, just say no.

 

Question 12: Vow that you won't overspend by as much as you did last year.

Correct Answer: Keep your holiday expenditures on a budget just like you do the rest of your expenses. Otherwise, you’ll be paying and paying and paying..

 

Question 13: Pay them once a month.

Correct Answer: If you’ve set up your budget properly, your bills are already factored into your account and many of them are paid seamlessly.

 

Question 15: Decline to sign up for the company's 401(k) plan; retirement is a long way away.

Correct Answer: When you get that first job, draw up your first budget. Saving early and often pays big rewards.

 

Question 17: 50 percent stocks, 50 percent bonds.

Correct Answer: Over the long term, stocks are your best investment bet. If you’re saving for several years out, put as much as you comfortably can into stocks.

 

Question 18: Feel anxious. Dad didn't really enjoy his life because he was always scrimping and saving to leave that money to you.

Correct Answer: The additional funds from an inheritance give you the luxury of becoming a bit more conservative in your investment strategy.

 

[Ashot]

Harut jan, it would seem like you need me to do some financial management for you!

[Anoushik]

Woo-hoo! 40 out of a possible 100. Compared with Mosjan and Harut, I'd say my score is pretty good!

[Ashot]

Mos - I am totally against this quiz - and you should be too brother. This quiz seems like a quiz for people that are on paychecks... come on bro who are we kidding - when was the last time you got a "PAYCHECK" - the questions are ridiculous and none of them are right for me or you!

 

lets go through some of them - let's say question number 3

 

#3 When your favorite sports equipment (computer equipment, audiophile equipment) store announces a going-out-of business sale, you:

Call to check the credit limits on all your cards and get in line early the first day of the sale. You plan to spend big.

Check your mental list of equipment you were planning to buy over the next year and decide what you will buy now.

Stay home. You don't trust yourself at sales.

Buy your dream equipment; you'll skip your vacation this year.

 

When was the last time you skipped vacation to buy yourself an AVET reel? so none of the answers apply to you... therefore you should be getting 100 out of 100 that you are a big time MONEY SPENDER - just like me!