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Financial Fitness Test: 10 Questions to Know if You are Financially Fit

Financial Fitness Test: 10 Questions to Know if You are Financially Fit

This test is taken from Making Your Money Work (Pera Mo, Palaguin Mo! 2) book of Francisco Colayco. Please do get a copy of the book because this is one of the most practical books I’ve encountered in my reading life of personal finance.


Get a sheet of paper. Check your financial fitness!

Financial Fitness Test

1 Do you have enough savings to last you 6 months?

Yes No

2 Do you have a form of insurance, for example, accident or disability or life insurance?

Yes No

3 Do you have any form of medical insurance?

Yes No

4 Do you have any long-term savings plan such as pension or educational plan or any endowment plan aside from your contributions to SSS or GSIS?

Yes No

5 Are you saving or investing money regularly from your salary?

Yes No

6 Do you know how much you are worth today? Do you have your own Statement of Assets and Liabilities?

Yes No

7 Do you budget your spending and monitor your monthly expenses?

Yes No

8 Have you attended any seminar or read any book on improving your knowledge of personal finance?

Yes No

9 Is your monthly debt payment (for consumption purchases or credit card payments) every month less than or just about 20% of your monthly income?

Yes No

10 Do you have a personal plan with specific financial goals based on specific timetable?

Yes No

Scoring for Financial Fitness Test

Yes = 10 Points No = 0 Point

0 – 40 Points: You are financially unhealthy. You will face serious danger the moment you lose your source of income. You need to review your expenses, particularly your debt payments. You have to stop all unnecessary expenses right away.

50 – 70 Points: You are in good position to be financial healthy. You just need to improve your financial plan. First, determine the personal net worth you want to have when you retire. Ideally, you should break down this target every 10 years. This means thaht you have to choose the lifestyle you want to maintain. Second, estimate how much you will need every year to sustain this lifestyle.

80-100 Points: Congratulations! You are on your way to financial independence. You have the commitment and the discipline to achieve your financial well-being. Keep it up and don’t fail to exert effort to learn new things about how to further achieve your financial goals.

Review of the featured Financial Fitness Test

The above financial test is simple yet practical. For me, it provides the basic framework of what a financial plan must have: a detailed time-tabled plan, disciplined, and very Pinoy. For most Filipinos, we normally don’t prepare things ahead for medical need, retirement, or any unforeseen event since these are the things we don’t even want to talk about. Though there may be some other components to consider in the above such as depth of investment knowledge, knowledge to basic or public invesment or savings instruments, risk appetite of each individual – I think the test above is a jumpstart to having a personal finance goal.


Me Taking the Above Test

Let’s see how I fared in this test:

1) Yes

2) Yes, aside from the accident insurance and group life insurance that my company offers, I have a number of insurances too.

3) My medical insurance would have to be my company health card. I also have a separate investment account for my health fund, but not particularly a medical insurance like what Kaiser offers. Hence, I would say I would score a 5.

4) Yes, I got a pension plan and an educational plan, and longterm savings.

5) Yes

6) I would say I would score a 5. I have my monthly FS but this only covers for my assets. I sometimes fail to track my liabilities due to the fact that I have a number of credit cards.

7) Yes

8) Yes

9) Sometimes it’s less than 20% sometimes it’s more than 20%. I would say it is a 5.

10) Yes

Total, (if I set my 3 items with 5 as 0), I would score 70! Yehey!

Share your score now!

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