First, it was Intelligence Quotient (IQ), then to Emotional Quotient (EQ). Now it is Financial Quotient (FQ).
Money science is the new buzz word now. Investing & Money management has become part and parcel of every successful women’s responsibility.
Let’s do a quick financial quiz to access your Financial Quotient and Basic Money Managment Style.
1. If I were to receive $30,000 my first reaction would be:
a. Go to the mall and use all of the money and even buy things for my friends.
b. Feel confused and overwhelmed about the money.
c. Call up a Financial Planner to invest the money, rather than leaving it in the bank.
2. This is my idea of a budget:
a. Budget? What budget? My money needs to be used on the stuff I want at the moment!
b. I try to make a budget, but I never have time for it.
c. My budget is just perfect; the only thing is that I hardly ever use my money.
3. My attitude towards credit cards is:
a. I use them for everything even when I run out of money.
b. I use them but I don’t think about the balance very often. I sometimes forget to tell my parents how much I have spent.
c. I only use credit cards for the freebies and discounts.
4. When it comes to keeping a record of my bills:
a. I get the bills and and I run through them, but later I can’t find them.
b. I don’t even know what records to keep, so I don’t keep any.
c. I am very careful with my money, so I keep records of every cent I use.
5. My financial goals are:
a. To have enough money so I can always buy what I want.
b. I don’t think about goals too much, so I don’t think I have any.
c. To make a lot of money and make sure I always have it.
Learning about your own money management style is already the first step to increase your FQ. Unlike IQ, FQ can be increased by educating your mind and keeping your financial goals in mind.
Of course, you may also want to consult a Financial Planner to assist you in creating your personal wealth portfolio. With new regulation, of FAA (Financial Advisory Act), and the lowering of fees charged for CPF investment from July 2007 onwards, it gives even more reasons to plan for your retirement goal and your own a investment plan of your choice!
With everything being instant, even coming to shopping or buying things that we dream about, we have also want to own it quick. Swiping our credit card for our purchases without much thought. Learn the art of delayed gratifications, especially when coming to buying big tickets items, like a brand new car, your dream Lois Vuitton bag, your Europe holiday.
By understanding your own financial decision, you are already on your way to becoming your very own Financial Diva!
Results to Financial Quiz
If you answered mostly “a” to these questions, you may be a
Financial Diva Wannabe
The Financial Diva Wannabe: Money to you is glorious and you can’t hold on to it for a long time. Money is just one of your tools to have fun.
If you are a Wannabe, you can open a savings account and put some money away. Use the formula of Income – Saving = Expenses. (Rather than Income – Expenses = Saving) Do something that will be more fun, like roller-blading, swimming or even join a gym, rather than using all of your money where you don’t have to spend money.
If you answered mostly “b” then you would be an
The Financial Diva-To-Be: Money isn’t your thing; it just fly right by you and you don’t even notice it.
If you are a Diva-To-Be, you can write out specific financial goals for the future. Keep track of everything you spend for a week. Maybe opening a separate bank account to divert your saving, will be good so that you don’t worry about spending or not spending money.
And if you answered mostly “c” you may have some
Super Financial Diva
The Super Diva: Spending money on unnecessary things is not your style. In fact, you like to save because you would like to have more money for the future.
If you are a Super Diva, have a absolute figure that you want to achieve at a given age. Learn to reward yourself with little gifts for following through your financial plan.
You might just fit in to all of the characters in this financial quiz but just know that if you manage your money in a fun way—it will be better for the future; then you will have lots of money!
So, are you a Financial Diva?
Article by Kevin Foo who is currently serving as a Manager, building his Wealth Management practice with a Canadian based company. He can be reached by email@example.com