Your Financial Health Score

You should perform an annual financial health evaluation, as outlined in class 1.104 Financial Health Checkup. Below is a diagnostic tool to get you started. The checkup is a self-assessment. In addition to questions about debt and credit score, it contains a number of questions about attitudes toward money and systems, as one of the goals of Demystifying Wealth is to create foundational money habits that will serve you throughout life. Most people will score comparatively low the first time, so see the score as baseline for a work in progress. Take the missing items as personal challenges. There are few overnight fixes, but imagine how your future self will feel in 12 and 24 months if you start your wealth-building journey today.

Personal note: My only concern is that no one should feel discouraged. Most testers fared poorly before taking the courses (the median score was 28). If taking an assessment would help motivate you to accept the challenge to improve your financial muscles, then take it. Otherwise, feel free to skip until after you have completed the courses as discouragement is never good. The only barrier to your wealth journey is that no one ever taught you.

0 votes, 0 avg

What Is Your Financial Health Score?

As part of course 1.104, Financial Health Checkup, we ask you to do an in-depth self evaluation of your current financial situation. Most people will fare poorly the first time, but if you follow the lessons on Demystifying Wealth, you can get above 90%. Allocate half an hour to this assessment as this is not a quick exercise.

1 / 9

1. I have thought the following and have either (a) written down my thoughts or (b) discussed my thoughts with someone else, such as my partner, family member, or friend (check ALL that apply).

I have thought about times money has caused me stress and conflict

I have thought about the stories or imprints around money that I have from growing up and how they have motivated me

I have thought about what I consider the top three worst money decisions I have made in my life and why I made those decisions

I have thought about and have a clear view of the role that I want money to play in my life going forward

I have thought about and have clear wealth and financial goals with specific numeric goals and dates to achieve those goals

3 / 9

3. "I have saved and am saving enough to meet my goals by my target dates." Which of the following is true?

This statement is 100% or more true.

I am making strong progress in where I should be today in existing accounts and investments I am making, but need to do more.

I am only about half of where I should be today in existing accounts and investments I am making.

I am lagging significantly from where I am and what I need to do.

I have no meaningful savings and investments toward my targets

4 / 9

4. Which of the following statements are true? (check all that apply)

I have listed all my short, medium, and long term other financial goals, both by date and amount I need to have saved.

I have created a current summary of all of my assets and debts (balance sheet) and know how much I have saved.

I have calculated myself or with the help of an online calculator or other person what I need to save to meet my retirement goals using the 4% rule or some other reasonable assumption.

I have calculated myself or with the help of an online calculator or other person what I need to save to meet my other goals.

5 / 9

5. Which of the following statements are true? (check all that apply)

I have listed all my debts by creditor/purpose, amount, interest rate, and minimum monthly payment or have no debts.

I have a plan to plan off all debt over 10% within 6-12 months, or I have no such debt.

I have a plan to pay off all debt between 5% and 10% within 12-18 months, or I have no such debt.

I am taking on no new debt, except low interest debt to invest in a home or my business or education which I have determined to be a good investment.

6 / 9

6. I have checked my credit score and it is:

Over 800 or I have no credit score because I have never borrowed money and have never been late or defaulted on a debt.

Between 740 and 799.

Between 670 and 739.

Between 580 and 669.

Under 580 or I do not know my credit score.

8 / 9

Which of the following statements are true? (check all that apply)

I have a written or electronic budget spending plan that prioritizes all my investment and savings goals first and then I spend only what is left for discretionary items.

I have an emergency fund of 3-6 months (or shorter or longer as I have deemed reasonable).

My spending on essential items does not exceed 50% of my take home pay each month.

Within my discretionary spending, I prioritize and spend on the things I value most and try to be frugal with items that mean less or nothing to me.

I know where all my spending goes each month.

I have a zero based or envelope budgeting system, have a different budgeting system that ensures I do not spend more than I plan to, or have no need because I only spend what is left after my investing and essentials are taken care of.

I review my spending in detail monthly (or annually if you are meeting your goals regularly)

NameEmail

Your score is

The average score is 30%

Exit

Your Financial Health Score

Donate to Help Teach Others