Are you deep in debt? Take the debt quiz!
The primary reason most people have money problems is that in school they were never taught cash flow management. Without this training, they wind up working harder and harder in the belief that making more money will solve their problems. Unfortunately, more money often just sends people deeper into debt. More money won’t solve problems if cash flow management is the problem.
As CEO of the business of your life, you’ve created a personal financial statement and analyzed it. The next step is to take control of your cash flow.
DEBT QUIZ: ARE YOU DEEP IN DEBT?
The cash flow management plan you develop depends on your level of personal debt. To get a sense of how deeply you are in debt, look at the list below devised by Kiyosaki. If you can answer yes to any of the questions, put a “1”.
- Do you pay your bills late?
- Have you hidden a bill from your spouse?
- Have you neglected repairing the car because of insufficient funds?
- Is there family tension because of overspending?
- Have you bought something recently that you didn’t need and couldn’t afford?
- Do you regularly spend more than your paycheck?
- Have you been turned down for credit?
- Do you buy lottery tickets in the hopes of getting out from under?
- Have you put off saving money for a rainy day?
- Does your total debt (mortgage excluded) exceed your rainy-day reserve?
Add up the numbers. Is your score 0? Good for you! You’re in control of your cash flow. If you score in the 1 to 5 range, however, you may need to reduce your debt. If you score in the 6 to 10 range, watch out—you may be headed towards financial disaster. The higher the score, the more urgent it is that you increase your financial literacy.
As for me, personally, I scored zero at this point of time because I know how to manage my cashflow and partially because I’m still single. However, I believe that as soon as my time comes to have my own family and dependents, I would need to retake this debt quiz and assess myself again. I just hope that with the preparations that I’m doing right now that I’m still young, I would still get good results when the time comes for me to take this debt quiz again.
How about you? What’s your score? Are you deep in debt? If you are, then you should act now before it’s too late.
Source: Robert Kiyosaki’s Coaching Program
To get articles, you can subscribe using your favorite RSS feed reader or have them delivered directly to your email address.
Bookmark This Page:
What To Read Next
Search for more:
October 31st, 2009 at 11:15 pm
That said, I’ve got a good sized mortgage which I need to pay off over time!
[Reply]
November 1st, 2009 at 1:14 am
[Reply]