How financially fit are you? Find out

Take this quiz to find out if your money habits will ensure a healthy financial life or not, says Sanket Dhanorkar.



My emergency fund will cover expenses for

a) 6 months and more

b) 3-5 months

c) 1-2 months

d) What is an emergency fund?



I am able to save

a) More than 50% of my income
b) 25-50% of my income

c) 10-25% of my income
d) I am just about making ends meet with my current income



My monthly utility bills are

a) Automatically debited from my bank account

b) Paid gradually at my discretion over the course of the month

c) Paid at the last minute

d) usually miss payment dates



I have a life cover of

a) More than 8 times my annual salary

b) Around 1-2 times my annual salary

c) Less than my annual salary

d) I do not have life insurance cover



My debt obligations require me to

a) Sorry, I am debt free

b) Pay less than 30% of my monthly income towards repayment

c) Pay more than 40-50% of my monthly income

d) Forego any investments EMI payments



My credit card bills are

a) Paid in full every month

b) Rarely rolled over

c) Rolled over 1-2 times a year

d) Usually rolled over because I can't pay the full amount



I invest a part of my monthly savings

a) Regularly

b) Usually

c) Sometimes

d) Never, it lies idle in the bank



In case of a medical emergency in the family, all costs will be met

a) Through a standalone health cover of Rs 5-10 lakh

b) Through the employer-provided mediclaim cover

c) Out of my emergency fund

d) Don’t know how as I have no financial buffer



My investments mostly comprise

a) Automated investments in MFs through monthly SIPs

b) Investments in safe avenues like recurring deposits, FDs and Post Office Monthly Income Plans

c) Direct investments in shares of companies

d) End of the financial year scramble to save taxes



My monthly spends are mostly on

a) Necessary expenses like utilities, food and rent

b) Basic expenses and occasional splurging

c) Entertainment, movies and dining out

d) Anything that catches my fancy. Why earn if you don’t spend?



I invest in the stock market

a) To build a corpus for my long-term goals

b) Whenever I have surplus cash left after other investments

c) Never; I avoid investing into such a high risk avenue altogether

d) Only when the market is performing really well



My family knows that my Will

a) Is updated every five years, or after any major life changes

b) Was written some years ago, so we don’t worry anymore

c) Will only be drawn when I am nearing retirement

d) Reminds me of my own mortality, so I haven’t thought about it yet



How to assess your financial health

a) 3 point

b) 2 points

c) 1 points

d) 0 points



Score card

16 or less points

You could really struggle to give your family a secure financial future; a drastic change in approach towards money matters is needed

Between 16-24

Your financial fitness is passable, though some of your money habits stand to put your financial health at risk over time

Between 24-30

Your financial fitness is good, though there is scope for further improvement

More than 30

Your financial health is in great shape; keep on track for a secure future