How close are you to financial freedom? | Economic Times

This quiz is designed to test how close you are to financial freedom. Take it to know where you stand. We hope your score will free you from financial worries.Do you follow a fixed budget for monthly expenses?a Yes, follow it strictlyb Sometimes budget is missedc Planning to draw up a budgetd Don’t need a fixed budgetHow often have you dipped into your retirement savings?a Never. They are for the long termb Once or twice, due to emergenciesc Quite often, to fund expensesd Have no retirement savingsHow much of your monthly income do you save for retirement?a More than 20%b Between 10% and 20%c Less than 10%d Not able to saveIf faced with an emergency expenditure, what will you do?a Have an emergency fund for thatb Liquidate some investmentsc Take a loan from a bankd Will have to borrow from friends, relativesAlso Read: Corpus of Rs 1 cr may seem large now, but won’t last 35-40 years in retirement: Atul Shinghal, ScripboxHow long can your emergency fund sustain your expenses?a More than a yearb About 6-8 monthsc Less than 6 monthsd Don’t have an emergency fundHow big are your outstanding loans?a No loans outstandingb Less than 3-4 months’ incomec About one year’s incomed More than 2-3 years’ incomeDo you have medical insurance cover?a Self bought plan and group cover for self and familyb Self bought insurance for self and familyc Only group cover from employerd No medical insuranceHow much is your total life insurance cover?a More than five times my annual incomeb Equal to 1-2 years’ incomec Less than annual incomed Don’t have life insuranceScore yourself on the following basis:a 3 pointsb 2 pointsc 1 pointsd 0 pointsAlso Read: Follow these 4 steps to achieve financial freedomThen add up the scores to know where you standAbove 20 pointsCongratulations. You have covered all your bases and are on your way to financial freedom. Continue on the same path.15-20 pointsYou are doing well, but need to fi x some chinks in your financial armour. Once you do that, you can be financially free.8-14 pointsYou are a borderline case and need to make changes in your financial plan. Try and save more, buy insurance and don’t rack up too much debt.Below 8 pointsYour finances are in a precarious state. Unless the problems are fixed, you won’t even reach your financial goals, leave aside financial freedom.