Your Saving Money Mindset - take the quizzes
Are you well poised for saving money? Is frugal living right for you? Are you on the road to being debt free? Or, will this be a hard sell right from the start?
Your mindset of frugality is based on your beliefs. In other words, frugal living hinges mostly on what you value.
Many of your values come from examples you have seen during interactions with your friends, associates, family members and others you admire.
Let’s see how you would respond to the following questions about your immediate family (i.e. mother, father, brothers, sisters). Answer yes or no to each question.
- Do they have a history of steady income and saving money?
- Can you name at least 5 ways they have made successful investments with their money?
- Does (or did) your immediate family operate a successful business?
- Is there considerable accumulation of wealth by your immediate family members age 40 and above?
- If a member of your immediate family is retired, are they living comfortably?
- In the absence of major accidents or mechanical failures, do they generally own and operate a new car for 5 years before replacement?
- Do they own a cabin or recreational property?
- Is it accurate to say that your immediate family has never been on unemployment or public assistance?
- Do they keep current on housing, utility, credit card, insurance and telephone payments?
- Is it accurate to say that you have never heard of them bouncing a check?
If you answered yes to most or all of the above, then you are probably in a good position to establish and exercise a mindset of frugality. People tend to follow in the footsteps of their family, and if they have seen good results, they will likely follow the examples shown.
"Yes" answers to most of the questions above would suggest that you could be successful with frugal living and achieve your own financial freedom.
Let's look at other questions related to saving money and the frugal mindset. Answer these questions as they apply to you.
This time answer true or false.
- I had a bank account at or before age 10.
- Saving money is something I do even if I don’t have a specific goal in mind.
- My cars are driven at least 5 years before replacement.
- I live within my means, not paycheck-to-paycheck.
- Just the thought of borrowing money bothers me.
- It would be possible for me to sustain myself for a few months if I became unemployed because I am good at saving money.
- My credit card is a convenience for me and I pay it in full each month.
- I have at least three different types of investments that I take seriously (e.g. 401K, IRA, CDs, real estate, stocks, bonds, gold, rare coins, etc.).
- The larger the expenditure, the more carefully I think before making a decision.
- I am rarely late on payments and never bounce a check.
If you answered "true" to most or all of the above, then you probably already have a good frugal mindset. If most of your answers were false, then you have lots of work to do.
Now, try these questions. Again, just as they apply to you, answer true or false.
- Saving money for retirement isn’t important – I count on social security to meet my financial needs when I retire.
- For me, there really isn’t much difference between needing something and wanting something.
- I play the lottery in hopes of winning big some day.
- There are many television and news programs that I watch regularly.
- I have filed bankruptcy because I over-extended myself.
- Being a TV game show contestant is in my future.
- I’ll always rent or live with someone, since buying a place of my own “just isn’t in the cards”.
- I go out to eat dinner or to a bar or social club about twice a week.
- My approach is to take life one day at a time – I never know what tomorrow might bring.
- I enjoy entertaining myself by gambling at casinos.
If you answered "false" to most or all of the above, you are probably already in a good frugal mindset. If you answered "true" to 3 or more, then you have some work to do. If you answered "true" to 5 or more, you’re in for lots of work ahead before you achieve a mindset of frugality.
Now that you have made a bit of a self-assessment as to how well your current mindset matches the frugal mindset, let’s look at some characteristics of a frugal mindset that you will want to incorporate into your way of thinking.
You have to understand why these are a better way of thinking about saving money. You have to know how they can lead to wealth accumulation. Some are ways of thinking and doing, and other are things to beware of and avoid.
So, perhaps you have a mindset that lends itself to frugal living and saving money. Or, maybe you need some work in that area. Regardless, you’ll want to know more about some of the concepts of a frugal mindset and how that can help you achieve your financial goals.
Done with Saving Money, take me back to the Debt Free page.