For many this question can evoke all sorts of fears. Fear of failure, fear of scarcity and worst of all, fear of financial insecurity. Whilst it is natural to avoid asking this question this can be very dangerous. Like all fears, the only way of overcoming it is to face it. What you resist, persists (and often tends to get worse).
On the flip side there are plenty of benefits to answering this question because without knowing your financial reality you are helpless to change it for the better.
To help you answer how in control of your finances you feel, rate the following five statements, scoring yourself between 1-10, with 1 being completely true and 10 being completely false.
- You frequently spend your entire monthly salary
- You never know what all your money has gone on
- You do not know nor have planned for how much your life goals will cost to achieve
- You have no emergency savings fund (typically six months living expenses)
- You do not have a pension, life insurance or illness at work cover
If you score more less than 25 you have little control over your finances and can greatly benefit from closely following this series and doing the practical exercises.
If you score more than 25 you have moderate control of your finances but you will gain a greater level of mastery by following this series.
If you score 35 or more you have a good level of control over your finances, though to acquire complete financial mastery you could fill out the exercises for the downloadable spreadsheet and read the posts.
Remember no matter what your score you should pat yourself on the back for a job well done – after all you have taken the first step towards financial mastery! Remember there is always a way to gain back control over your finances so do not despair, in the coming weeks there will be practical exercises to help you get back on track and become masterful in having your money work for you.