Money Management

Are You in Control of your Money?
Or Is Your Money in Control of YOU?

By Karin Price Mueller
You should rule your money -- your money shouldn't rule you. If your money habits are getting you down, take control. Use this quiz to learn more about your money personality. Then, find out what you can do to improve your thinking, and your actions, when it comes to money.

  Question 1 of 10

# 1 That bonus you've been waiting for has finally shown up in your paycheck. Now that you've got the cash, you:
Catch up on those bills. You finally pay more than the minimum on your credit cards, and now you won't have to be late on the electric bill. The bonus puts you back on schedule, for now.

Run a dozen different scenarios using some online calculators to see where the money would do the most good. After examining all the possibilities, you take half the bonus and divide it in equal parts among all your IRA accounts. Then you put a percentage in your emergency fund and prepay the mortgage with the balance.
Save some in your emergency fund and spend a little, just for fun.

 # 2 Your money makes you happy when:
You have a little breathing room on your credit card for a trip to the mall.
Your checkbook is balanced, your bills are paid and every statement has been neatly filed away.
You've found a little left over after paying your bills so you can meet your best friend for happy hour on Friday night.

# 3 We all have our own methods of keeping track of the bills. You:
Usually know where your finances stand. Your bank accounts are in order and you don't have to dip into your overdraft protection.

Use personal finance software, complete with spreadsheets and downloadable online bank accounts. But even though you use this time saving method, you spend hours creating pie charts to analyze how you're doing.
Don't have the time or the inclination. You check your balance once or twice a month to make sure you're not overdrawn.

# 4 Retirement is decades away but you know you have to save today. You feel:
Confident. You're maxing out your 401(k) plan and you've started an IRA. You've even used online calculators to figure out how much you'll be worth when you retire.

Inadequate. Although you're saving the max to your 401(k), you can't seem to shake the feeling that you're not doing enough. You feel guilty about the buck you spend on morning coffee, and you worry that your investments won't earn enough.

Panicky. You wonder which fast food restaurant will be hiring seniors when you're ready for your golden years.

 #5 You know your retirement investments are for the long-term and you have time to let your savings ride the ups and downs of the stock market. Still, you:
Check your investments daily, even twice a day, just to see how things are going.
Take a look at your accounts once a year when the accountant needs some data to finish your tax return.
See how your portfolio is doing whenever a statement comes in the mail.

#6 The holidays are coming. You:
Aren't worried about paying for gifts this year. You joined a Christmas Club to set aside money all year long, and your detailed budget tells you how much you can afford to spend for each person on your list.

Know what you can afford to spend, and if you go a little overboard and it takes an extra month to pay off the credit cards, so be it. It is Christmas, after all.
Apply for a new credit card so you can afford some gifts. The other cards are still heavy with debt from last year's holiday season

#7 The new year is here and so is tax season. You prepare for seeing your accountant by:
Stuffing all the relevant papers into a giant envelope. Then spend the afternoon writing a list of all your important deductions for the accountant. All she has to do is the math.

Printing out your spreadsheets from your personal finance software program and making copies of your receipts, which were stored alphabetically throughout the year. Once all your tax forms come in the mail, you'll get them immediately to your accountant.

Asking the accountant to file for an extension. It's going to take time for you to find all the paperwork you're going to need.

#8 When you have to make a money decision about an item that costs a few hundred dollars, such as a digital camera or a stereo, you:
Go into the store and ask the salesperson for a recommendation.
Ask your family and friends for advice, read an article or two, then choose whatever item you think is best.

Spend hours online investigating your options, reading books and magazines. Then after devouring every product pamphlet you could find, armed with knowledge, you make your choice.

#9 Your mutual fund sends you its annual statement. You:
Immediately pore over the document and compare all the numbers to last year's -- which you had filed away -- then decide if you're going to stay invested.

When you have the time, glance at some of the important numbers, such as performance data and expense ratios. Unless there's something earth-shattering, you leave your investment alone.
Toss the statement in the garbage.

#10 You receive an offer for a low-interest, no-fee credit card. You don't really need another card right now. You:
Save the offer for another time, just in case the need arises.
Apply immediately, and plan to cancel some of your other cards. If this deal really is as good as it sounds, this could be your primary credit card.
Apply immediately. You can always use more credit, especially now that some of your other cards are maxed out.

10 great strategies to save money

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