Learning the hard lessons of "Pay Day"
Wed, 2010-03-24 16:10 | 
Imagine it's payday.
Now, tell me about it. And we'll keep score along the way to see how well you can manage money.
1. Do you get a "live" check or have you setup a direct deposit into a bank account?
If you have direct deposit, add a point.
If you get a live check, subtract a point...unless you pay everything with cash in which case you can also add a point.
We'll come to that later.
2. What does your first payment go towards?
If you say bills, such as "mortgage payment", "bills" or "food", then add a point.
If you throw it at dinner and a movie, a new cell phone, or other "want", then subtract a point.
3. Did you have any overdraft fees for the past two weeks?
If you said, "Yes", then subtract a point. Actually, subtract a point for each overdraft fee.
If you are paying bank fees between $20 - $35 for each overdraft, then you then you are paying money you don't have. That's painful and not smart.
If you said "No", then add a point.
4. Did you have a budget?
Easy. A "Yes" gets you a point. A "No" means subtract one.
5. Did you follow the budget?
Again, add one for "Yes" and subtract one if you said "No".
It's one thing to make a budget - and another thing to follow it.
Now, "follow a budget" is more subjective.
What if the budget wasn't realitstic? You know...overly optomistic on what you thought you would spend. Or perhaps it was not tough enough on you to make good choices.
If you have budgeted donuts and soft drinks each morning before work, then you probably need to forget padding the budget and make some tougher choices so money can go toward savings.
6. Are you behind on your bills?
Are you getting shut off notices from the utility company? getting calls from the credit card company? or even late on your mortgage.
If so, then subtract two points or add two points if you are all caught up.
Stop playing games of playing catch up on bills. That doesn't work because something else is not getting paid for when extra money has to cover the higher bills.
Besides, you can't afford those late fees, credit reporting, etc.
Not to mention the stress it causes.
7. Do you give to charity?
If you do, give yourself a point. A no doesn't necessarily mean you are a selfish, but it does mean you can't help others in more need since you haven't learned to help yourself.
8. Are you kids working and paying for their stuff?
If you have a child who is sixteen and not working, and you are paying for the cell phone, car insurance, etc. then subtract a point.
You are enabling bad behavior.
If your children pay for the services they enjoy, then add a point. Way to go...it's not easy to get kids to work these days.
But they should paying for things they benefit from.
9. Have you put money away into savings, retirement, etc.?
Add a point if you said "Yes". Subtract if you said "No".
The "No-ers" believe tomorrow never comes. Well they are wrong. Sadly, if you put money away today, you benefit from compound interest and will ultimately put less away than the person who procrastinates in order to receive the same level of benefit later.
10. Were you honest in this survey?
I'll probably be toughest on this one.
Give yourself 2 points if you said "Yes" (and aren't lying about it) and subtract 2 if you have to reevaluate and realize you were too easy on yourself.
You can't solve your money problems if you are in denial.
It's much better to face the facts, even if the numbers aren't pleasant.
At least then you can do something about it.
Scoring:
12 Points - Excellent
9-12 Points - Good
6-9 Points - Fair
3-6 Points - Poor
3 and Below - Get help and keep coming to this site
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