The Broke Test
THE BROKE TESTHow close to bankruptcy are you?1. How much money do you have in savings?a. Two-weeks take-home pay.b. Three months take-home pay.c. Six months take-home pay.2. What fraction of your take-home pay do you save?a. 0 to 2 percent.b. 3 to 6 percent.c. Above 7 percent.3. How much of your credit card purchases do you pay off each month?a. Almost always pay the entire balance.b. Pay entire balance most of the time.c. Almost never pay the entire balance.4. How many times a year do you withdraw from your savings to pay bills?a. Six times.b. Three times.c. Never.5. How much life insurance do you have?a. 6 to 8 times of my annual income.b. 2 to 5 times my annual income.c. 1 to 1 1/2 times my annual income.6. What is your maximum coverage provided by your medical insurance?a. 0 to $20,000.b. $20,000 to $50,000.c. Over $50,000.7. How much do you spend for housing, including utilities?a. 1/2 of my monthly take-home pay.b. 1/3 of my monthly take-home pay.c. 1/4 of my monthly take-home pay.8. How much of your monthly take-home pay does it take to make your payments, including your car, but not counting housing and utilities?a. 30 percent.b. 20 percent.c. Up to 15 percent.9. Having established a reasonable savings and insurance program, my additional investments are:a. Very conservative (savings accounts only).b. A mixture of savings, stocks, real estate.c. I have no additional investments.10. How much of your income will your retirement plan provide, including social security?a. 60 percent of income with inflation protection.b. Less than 60 percent with no inflation protection.c. Less than 60 percent with inflation protection.SCORING:
1) a. 0 b. 5 c. 10
2) a. 0 b. 5 c. 10
3) a. 5 b. 10 c. 0
4) a. 0 b. 5 c. 10
5) 1. 10 b. 5 c. 0
6) a. 0 b. 5 c. 10
7) a. 0 b. 5 c. 10
8) a. 0 b. 5 c. 10
9) a. 5 b. 10 c. 0
10) a. 10 b. 0 c. 5HOW DID YOU DO? Add up your points. 75 or above is great. 55 to 75 is good. 40 to 55 you have some problems. If you scored below 40, see a credit counselor or financial manager.
