Sunday, May 31, 2009

Provident Living Quiz Questions Revealed

As promised, here are the answers to yesterday's Providing Living Quiz.
  1. F--Spending within your means is essential to your financial security.

  2. T--You should try to limit your debt whenever possible to a modest home (definitely don't want to take on more mortgage than what you can afford to pay!), education or other vital needs. Avoid debt like the plague!

  3. F--Life will be better if we don't keep up with the Jones's!

  4. T--I'm living testament that debt causes tension and stress.

  5. T--Wouldn't you rather be in control of your circumstances, rather than have your circumstances control you? I remember a commercial with a guy showing off all his "stuff" and at the end he said that he managed to do it because he was in debt up to his eye balls. Not the prettiest site to imagine, at least for me. :)

  6. T--It makes sense to give back to our Heavenly Father a portion of what he has given us, so put your tithes first.

  7. F--I don't know about you, but there's no way I can remember each & every expense I, and my husband, for that matter, incur. Plus, I'm not very good at math, so adding & substracting in my head won't work either. Best to keep it down on paper.

  8. T--There are many useful tools to help you plan your budget, and a budget worksheet is most definitely a useful tool.

  9. F--Rather than spend your surplus on something frivolous, add that frivolous item to your budget. If you feel like it's absolutely positively necessary to get that 60-inch flat screen TV, don't dip into your savings account to make it happen. Instead, set aside a portion of your income each month and save for it. And you may benefit by waiting because the price is likely to go down.

  10. T--It is extremely important that you teach your family members financial responsibility. Hubs said his parents never taught him diddly squat about money, and he got himself into real trouble for irresponsibility after graduating high and entering the "real world." On the other hand, I grew up hearing "we can't afford that" and "we don't have any money" all the time, and as such I'm such a tightwad. I lean towards hoarding each & every penny and living off Ramen noodles. Had our parents taught us about financial responsibility, we might not be in the predicament that we are currently in--debt to creditors. Not saying a parent who teaches his/her child won't see that child make mistakes. As parents, it is our responsibility to teach our children. And to remember that our children have their agency, or free will, and they will make their own choices. But at least we will not be held accountable for not trying.

  11. F--There is a LOT you can do if you are in financial trouble. Our church has a welfare program that provides temporary relief to families or individuals in need. Your church may have a similar means to help out. There is a lot of information on the Internet as well. I would recommend You can sign up for a monthly newsletter with great tips, free budgeting worksheets and coupons. Additionally, if you want to speak to a professional financial advisor, you can talk to a Consumer Credit Counseling Service. Just be careful about the company you select--they should never charge your first payment as a fee for service.

  12. F--Bankruptcy should be the absolute last resort. If you take on debt, acknowledge that you signed the dotted line for that loan or that credit card agreement. If you're not able to make your payment, talk to the bank or credit card company and ask for a lower interest rate, or for them to waive the late fee for that last payment, or to change your payment due date, etc., etc. Most financial institutions will work with you.

  13. T & F (depends on how you look at it--I had to throw a trick question in there!)--Hardships may come regardless of your income level. But if you are debt-free, at least you have one less thing to worry about.

I'm no poster child for financial know-how. After clearing up my husband's credit we charged up my credit cards and are having to pay off 4 credit cards. I'm thankful that we've paid off both vehicle loans, but we have a long way to go, at least with the credit cards. It's a struggle, I'll admit, but being debt-free is a goal that we are working to achieve. It may take 3-5 years, but I know that if hubs and I remain on the same team, that we can do it!

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