Financial health check up

Take this financial health check up quiz and see how you fare.

Your boss is pleased with your performance during the year just gone by. You receive a bonus which far exceeds your wildest dreams. What is your first thought ?

a. I should call my travel agent and check out on that world tour.
b. I should call my banker and pay off my credit card debt.
c. I should triple the amount that I invest in SIPs as I am already debt-free.

Your medical insurance premium rises as a result of you crossing 40.

You. . .

a. Decide to discontinue the insurance, as it is too expensive.
b. Reduce your insurance cover so that the premium outgo remains the same.
c. Decide to continue with the insurance and cut back on your restaurant visits.

Your company goes belly-up and you lose your job. You. . .

a. Are panicking about being unable to meet your 'Holiday Loan' EMIs.
b. Are concerned about how to pay your rentals but plan to do it by working part-time.
c. Are sanguine about it, as you have enough savings in the bank so as to meet your expenses and your SIP obligations for the next six months.

You get a "fabulous" balance transfer offer from your credit card company.

You. . . a. Eagerly accept it, and think up new ways to spend your recently freed-up limit on your old card.
b. Accept it, but resolve to pay off at least 50% of your outstandings from next month.
c. Throw the offer in the dustbin as you pay off all your dues on time and hence do not require to avail of such offers.

You receive news that your wife is pregnant. You. . . a. Throw a lavish party in celebration.
b. Worry about the future costs involved and resolve to reduce your profligate spending habits.
c. Immediately invest in a set of blue-chip stocks with the intention of gifting them to your child later on.

A. 1 POINT
B. 2 POINTS
C. 3 POINTS

Up to 5 points -- Watch out buddy ! You appear to be headed for the Financial Clinic ICU. Reform soon or face future financial ruin.

5-15 points --You are not exactly rolling in money. However, all is not lost, as you appear to be determined to work your way into "greener" pastures.

15 points - You are a living example of financial sagacity. Keep it up and spread the good word amongst other "mere mortals".

The author is Vice President, Parag Parikh Financial Advisory Services.