Here are ten questions that can measure how financially fit you are in your personal finances.
No = 0
I’m halfway there = 1
Yes = 2
- You can pay off off your credit card debt any time you want to or have zero credit card debt.
- You have three to six months of living expenses saved for emergencies.
- You have at least two consistent streams of income.
- You save 10% or more of your income each month.
- You have a six figure net worth.
- You own cash flowing assets.
- You own your home outright or with a mortgage at a locked in rate.
- You own stocks, cryptocurrencies, or investment real estate.
- Are you compounding your gains in your investment portfolio by letting it grow or reinvesting dividends?
- Do you have a career that gives you upside growth in income potential?
- Do you work to learn and grow more than you work just for a paycheck?
- Are you always looking for a better opportunity with a promotion or by changing jobs?
- Is your goal financial independence from a job more than owning big houses and new cars?
- Is your car paid off or do you have another form of transportation?
- Do you have a written budget or naturally self controlled spending habits that are less than you make?
0-10 score you may not have financial peace.
10-20 score you are on your way to financial peace.
20-30 score you already have a high degree of financial freedom, keep going!
Read my book The Working Dead for a deep dive into the topic of financial peace and financial freedom.