Are you a saver or a spender? Try this quick quiz

We all know how to spend but do we know how to save?

The following quick quiz will help you determine whether you are comfortable with the success of your saving and investment habits.

Do you remember the first full-time salary you earned?

If so write it down.

Do you know the highest salary you were paid?

(For most people this will be their current salary.)

Write it down.    

Total the two salaries

Divide by 2 to get the average  

Multiply this average figure by the number of years that you have been working 

Total Gross Income you have received to date: $______________                                                       

Note: If you are married you should have your spouse also complete the above and add the two gross incomes together.

Now do a list of your Assets:

-  Home

-  Car                                                  

-  Investment Property

-  Bank account

-  Shares

-  Superannuation

-  Other                                                             

Total     $___________________

Now do a list of your Liabilities:

-  Mortgage

-  Credit card

-  Car loan

-  Personal loan

-  HECS/ HELP debt

Total     $___________________

Subtract the total Liabilities from the total Assets                                             

Total $__________________

Are you happy with the assets you have acquired so far during your working life?

What areas do you feel need improvement?

From my experience the people with the highest salary are not necessarily the most financially independent. It is probably 70% disciplined saving and 30% earnings or income.

To accumulate wealth you need to set goals, create a strategy to achieve these goals and regularly monitor your financial position.

Should you require further assistance, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166.

The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.