"What Is Your Money Mental: Accumulation or
Consumption?"
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(Consider Five Areas Of Your Finances To Find The
Answer Before You Begin Financial Planning)
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RELEASE: August 2001
CONTACT: Paul Richard, RFC, ICFE Executive Director
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San Diego, CA. What is your "money Mental?" asks
the nonprofit Institute of Consumer Financial Education (ICFE), a San
Diego based consumer group helping people of all ages become intelligent
spenders, regular savers and wise users of credit. It falls into one of
three categories:
1) You are a saver or,
2) You are a spender or,
3) You are right in the middle, saving very little, and probably spending
a lot more.
There are many things to consider, however, about your finances as you
attempt to determine your "Money Mental"
Following are some questions formulated to help you focus more improving
on your current financial position and determine your own "Money Mental."
| 1. |
Are you, in your
opinion, comfortable managing your day-to-day finances and in your
ability to increase your net worth? |
| a) |
_____ |
You bet! I have no debt, my house is paid for. I
participated in a personal retirement plan, belong to a credit union
and I am able to increase my net worth each year with investments in
a variety of financial products. |
| b) |
_____ |
For the most part, yes. My home isn't paid for, but
I have no credit card debt or other loans to payoff. I save a
portion of each paycheck, and invest on a semi-regular basis. Right
now, my retirement is Social Security and some savings. My life and
possessions are insured but I could be duplicating some coverage. I
think I could save more, however, if I earned more. |
| c) |
_____ |
Not really. I am just about running on empty, often
going from paycheck to paycheck at various times of the year. I am
paying off a car loan, credit bills and have little or no savings
set aside. I believe I am probably under-insured and have not looked
into any sort of retirement plan at work or one of my own. |
| d) |
_____ |
No I am not. I need help. My outgo exceeds my income
and my upkeep is becoming my downfall. I want to hang on to more of
what I earn. |
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| 2. |
My financial
/retirement plans for the future are. . . . |
| a) |
_____ |
Incomplete. |
| b) |
_____ |
A well planned portfolio. |
| c) |
_____ |
Social Security and some savings. |
| d) |
_____ |
Social Security and probably part-time work. |
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| 3. |
My day-to-day
finances are managed . . . . |
| a) |
_____ |
With a budget for the big things, you know, like
rent or mortgage payment, car and credit card payments etc., and
then I just spend what is left over on what other bills and/or needs
are left over. |
| b) |
_____ |
According to a written spending-plan (budget)
governing both income and outgo. |
| c) |
_____ |
By looking at how big the paycheck is and what
creditors are in line this week. Some have more importance than
others, like rent or mortgage, car loans and credit card bills are
more crucial not to pay late. |
| d) |
_____ |
I let someone else (my spouse, parent, accountant,
credit or debt counselor, etc.) deal with it because there is
usually too much month left at the end of my money. |
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| 4. |
If I were to take all
the money I have earned since entering the workforce (________
years) and add it up it would total $_________________ and it would
average out at $______________a-year. |
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My personal net worth
(The difference between the financial value of assets and debts)
.is: $______________________. |
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Next, compare your
present net worth with the total income you have earned, and it is: |
| a) |
_____ |
less than 10%. |
| b) |
_____ |
between 10% and 50%. |
| c) |
_____ |
between 50% and even. |
| d) |
_____ |
greater. |
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When comparing
current net worth to total income over my working years, I . . . . |
| a) |
_____ |
Have done OK |
| b) |
_____ |
Am asking where did all the money go? |
| c) |
_____ |
Think I better quit spending and start saving. |
| d) |
_____ |
Don't have a positive net worth and I need to pay
off some debt, and fast. |
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| 5. |
All things
considered, my financial outlook and present day situation will
improve when I . . . . |
| a) |
_____ |
Win the lottery or _____receive an inheritance. |
| b) |
_____ |
Enter the financial planning process. |
| c) |
_____ |
Improve spending and set up a spending-plan. |
| d) |
_____ |
Pay off credit cards and begin to save money before
entering the financial planning process. |
There are no right or wrong answers, just better answers. Of course, to be
able to mark the better answers means either that you have been very lucky
or, more likely, you are more of an accumulator, than a spender.
For help with "Mending Spending" and finding more money for savings, visit
the ICFE's Web site at:
http://www.icfe.info.
If you would like a printed copy, please send $1 to the
ICFE and ask for: "Money Helps"
The information packet includes:
Ways to
improve spending practices,
How to set up and
implement a spending-plan" (plus a budget work sheet),
Dealing with
creditors,
Steps to
take to reduce indebtedness,
How to
spend smarter for household and grocery items and a
"Spender's
Profile" which helps people identify dangerous spending habits.
Money Helps" is available on the Internet free or by sending $1 and
a self-addressed, 60 cent stamped envelope to:
ICFE Money Helps
PO Box 34070
San Diego, CA 92163-4070
About the ICFE:
The Institute of Consumer Financial Education (ICFE),
founded in 1982 by the late Loren Dunton - creator of the “certified
financial planner” (CFP) designation - is dedicated to helping consumers
of all ages to improve their spending, increase savings and use credit
more wisely. The years between 1984 and 2000, the ICFE was also known as
the National Center for Financial Education (NCFE).
The ICFE is a nonprofit consumer education organization that has helped millions of people through its education programs and resources. Over
one million “Credit
/ Debit Card Warning
Labels” and “Credit
/ Debit Card Sleeves” are in circulation world wide.
The ICFE’s on-line help for consumers who spend too much
was featured in PARADE Magazine (June 9th, 2002) in the Intelligence
Report section. The money helps and tips are from the “Money
Instruction Book,” a course in personal finance, which was completely
revised and updated in 2002 and is positioned to become among the premier
programs in the new bankruptcy and debtor education initiatives.
The ICFE’s “Do-It-Yourself Credit File Correction
Guide,” now in its Twelfth Printing, is in use by thousands of consumer credit and debt
counselors in addition to tens of thousands of consumers. It received a
“buy” rating in July, August and November from nationally syndicated
financial columnist, Humberto Cruz in his column, “The Savings Game".
BottomLine Personal newsletter gave the Guide a “Send For” rating in
September 2001. The ICFE and our do-it-yourself approach to credit file
correction was featured on NBC Nightly News on 04-30-02. The Spanish
edition of the Guide premiered in January 2002. Syndicated columnist,
Robert Heady also gave the ICFE Guide a “buy” rating.
The ICFE Web site at: www.icfe.info helps consumers with
mending spending, learn about the
proper use of credit, budget and expense guidelines, how to set up and implement a
spending-plan and also access financial education courses and videos and how to
teach children about money. Other ICFE services include a
free eNewsletter, and an
on-line resource center of financial education
learning tools, including videos, books and personal finance courses.
Consumers may learn more on the Internet about the "Do-It-Yourself
Credit File Correction Guide" here, or fill out our request
form, indicating your areas of interest.
For more information contact Paul Richard, RFC ICFE Executive Director at 619-239-1401.
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