Unity One Credit Union

Quiz: Are you living paycheck to paycheck?

Thu, Feb 14, 2013 @ 10:59 AM / by Erayne Hill posted in budgeting, paycheck, money management

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According to Dr. Phil's Web site, more than one third of adults admit they spend more than what they can afford, and 70 percent of Americans are living paycheck to paycheck. Are you doing the same?paycheck to paycheck
Take this "Financial Trainwreck" quiz from drphil.com. Answer true or false to the following statements:
  • I will neglect bills to make an impulse or luxury purchase.
  • I will make a purchase based on my perceived need or desire, or what I feel I deserve, instead of what I can afford.
  • I buy items out of guilt for my children, whether or not I can afford them.
  • I buy name-brand goods because of the emotional feeling.
  • I sometimes finance toys — boats, RVs, four-wheelers — or vacations.
  • I use borrowed money, such as credit cards, to make payments on items I have already financed. 
  • I charge basic living expenses: mortgage, car note, student loan, tax bill.
  • I buy things based on monthly payments instead of actual cost. 
  • I lack a budget or plan based on my financial reality, and lie to myself or spouse about expenditures. 
  • When I'm stressed out, anxious or celebrating, I spend money I don't have.
Count the number of true answers. If you answered true to any of these, you have an unhealthy spending habit. If you answered true to five or more, you are headed for serious financial troubles.
So, what's the solution? According to Kiplinger.com, here are some ways to remedy the situation:
  • Track spending and watch expenses. Track down to your spending pattern on a daily basis. Be detailed.
  • Start cutting. 1) Cut interest rates by asking for lower rates from your lender or find a card that has low fixed rates. 2) Find deals. For example, use Skype and lower your long-distance bill.
Always feel free to contact your financial institution for other cost-saving techniques to break the cycle.
 

 

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