adminThat is why the resolutions come in. But intending to change actually changing are two different things. How can one make things better next year?
It is said that money does not buy happiness and that may be true but there is no denying that not having enough of it to cover our wants and needs leads to a lot of unhappiness. After the unbridled spending of the festive season on top of the unsolved issues of the previous year, January often turns into a very uncomfortable month for many people.
Whether you consider yourself materialistic or not, rich or poor, there is no way you can run away from having to put your financial house in order. But before you fix it, you have to know where it is broken.
Here is a quick test to find out what your financial score is. Pick the most apt description of your situation and add the numbers.
1. Shelter is one of the basic human needs. Rented, owned or under mortgage, most people have to pay for it.
(a) You have paid your rent and utilities due for January – 1
(b) You have not yet paid the bills but you have the money in hand -2
(c) You need to collect what your owed so you can pay what you owe – 3
(d) You overspent again and you will have to make a plan – 10
2. You have to feed the body that works and there is no way to escape putting food on the table. If you have kids then do not expect them to go on a starvation diet for the month of January because you spent too much on the Christmas dinner.
(a) All the basics are in the cupboard or freezer and you have the money for the daily expenses for a normal diet -1
(b) With some careful husbandry the basics will last the month but you will have to cut down on the luxuries – 2
(c) The cupboards are almost bare but you are sure that something will come up to tidy you until the end of the month – 5
(d) One way or the other there will be food, you just have no idea right now how you are going to do it – 10.
3. Commuting is a fact of life for most people. And if you have kids who also commute to school that only compounds the problem.
(a) All that is sorted out for all the family members who need to commute and you even have a back-up plan for the day when the car might refuse to start for no good reason you can figure out. -1
(b) You have a couple of vouchers in hand which should be okay as long as no emergency arises before the end of the month. – 2
(c) There is a lift/fuel facility that you can use and pay off at the end of the month. – 5
(d) Such trifles have not even crossed your mind at this stage – 10
4. The TV has become The Presence in our household and unfortunately that means paying for the pleasure.
(a) Your subscription for January is already paid up – 1
(b) It is on the list of things to do and the money is safely tucked in the bank just waiting for transfer after the holiday rush. – 2
(c) Drat! You had forgotten this one but if you juggle a couple of things around and postpone paying off the utility bills you can just about swing the subscription. – 5
(d) Not another bill! The Met Office says there will be rain throughout the month of January so you might as well not bother with this one as transmission will be scrambled all the time anyway. But part way through the month you will have to borrow some money and pay up because the short humans in the house cannot live without Disney, Boomerang, Trace and other important channels like that! – 10
5. School fees and provisions are the parent’s bogeyman, come January, but it is surprising how December seems to make many people forget that the little blighters will have to be returned to school fully outfitted with uniforms, books, sports equipment, fees and so forth some day real soon.
(a) All that got sorted out at the end of November so that you could have a real great holiday without having to worry about such mundane stuff. – 1
(b) You never got round to actually buying the stuff but the employer takes care of that so you should be able to sort it all out with little hassle – 3
(c) You will run around the day before schools open and scratch enough to meet the most basic requirements then have to sort out the rest at the end of January. – 3
(d) The kids really needed new clothes and everyone would think that you are stingy and really desperate if you did not throw a huge Christmas feast so there was no way you could do the fees as well. You will just have wait for opening day then beg the head to let little Tino into class on the promise that you will pay up at the end of the month. – 10
6. It is all very well to live in the present but the future needs to be taken care of and that means saving not just spending.
(a) You are accumulating long-term savings towards some goal even if it is just retirement and you also have a little left over from your spending money each month for emergencies or some unplanned impulses which happen to even the best of us when we least expect it. You have life insurance as well as functional funeral, cover and short term cover – 1
(b) You will are thinking of getting life insurance or something in the New Year but you have no set target to work towards. – 3
(c) If you buy a car or some home appliance or something like that you will consider 2012 a great success as in your lexicon you will feel that you have acquired an asset. – 5
(d) What do I mean savings? You cannot even get by on what you earn so where the hell are you supposed to get extra money to save? – 10
Score 6
You are the most financially sensible human being floating around, it is hard to believe you are for real. Either you are very rich and have no money worries or you are just a disciplined person cutting your coat according to your cloth. You obviously value what really matters and do not need any financial advice from anybody.
7-20
Your feet are on the ground but you are entirely focused on the short term finances without giving serious thought to investment. You need to pay a bit more attention to tomorrow as the future needs to be taken care of now rather than later. It is never too early to start.
21-40
You are not really in trouble but you could slide into a serious debt trap at any given moment. You need to clean house and start making a budget and sticking to it. Things will not take care of themselves.
41-60
The loan sharks love you and every waking moment of your life is spent wondering where you are going to get money to maintain the lifestyle that you cannot afford. Your friends and relatives dread getting a call from you. Let 2012 be the year in which you get real.
You will have to make some drastic decisions and start downsizing expenses that are not really important. Let the stars live the fabulous life on planet Hollywood while you come back to earth. If you really need a daily luxury fix watch TLC or something like that!
Online Reporter