Money Quiz for Your Budget

You have probably taken many quizzes from personal finance to career choices or even what kind of french fry you would be. When was the last time you quizzed your budget? Your budget should be working for you, after all. Let's put it to the test and see if it could use any improvement. Don't have a budget yet? You're in the right spot! Pick your coach and get started for free. Come back to this quiz when you're ready!

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How the Quiz Works

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Pull up your budget on a separate screen and keep it open next to this quiz. As you follow the prompts, make adjustments as needed. Take notes of anything you need to do or research outside of the budget. 

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Ready, Set, Quiz!

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1. Do you have all of your spending accounts included? It's easy to hide our spending habits if we don't track them regularly. Make sure you've added all accounts you actively spend from, including credit cards. Once these are added, you'll see a number labeled "For budget" on top of your accounts. This will either be positive, negative, or zero. A positive number means you have enough money to cover the debts you have entered. A negative number is the opposite, and you don't currently have enough to pay debts off in full. Seeing zero means you've broken even. Think of this as a mini net worth snapshot. These numbers are not inherently good or bad, just data that will change as you spend and earn. 

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2. Is your budget organized by due date? No one likes to be caught off guard. Edit the category names to include any due dates you can find for regular bills. Then, click and drag them so that they are in chronological order. This ensures you fund the category for your water bill due on the 3rd before the insurance bill due on the 22nd. Funding categories for miscellaneous home spending is important, but only after regular bills are accounted for. One quick peek of your budget should guide you through what needs to be funded before your next payday.

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3. Is your budget organized by priority? Everyone has different financial priorities. However some bills have a higher consequence if a payment is late or missed. Your budget should safeguard against that by showing you what needs money first. Some examples are your rent/mortgage, utilities, debt payments and student loans. Keeping fixed monthly expenses at the top of your budget helps prioritize which categories get funded first. This is also important if the bill doesn't draft monthly. For example, some users have quarterly water bills. These are just as important to plan for and can live near the top of the budget after regular monthly expenses.

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4. Is your budget a manageable size? A budget's effectiveness is not determined by it's length. Some people prefer to have categories for everything they can think of, and others like to stick to just the necessities. When you open up your budget, it should not be visually overwhelming. Money management is hard enough as it is! Skim through your categories and see if there are any you can condense, hide or delete. For example, if you had a category for "Mom's Birthday Party" and the party is long over, you may want to hide it so you don't have it on your view. Instead of a category for each person you buy gifts for, create one category labeled "Gifts" or break it down by season: "Spring Gifts". 

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5. Does your budget plan for the expected? Yep, you read that right. Planning for the unexpected can be daunting, so start with what you know is coming. School supplies are needed every year. Christmas is on the same day every year. There will be days you want to order takeout and buy presents for other people. Think about times when spending seems to sneak up on you and add categories to help you plan ahead. It is helpful to have a new category group for these expenses so you are aware of them. 

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Rank Your Budget

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Budgets are like eager students excited to learn and grow. No matter the grade, a budget is an evolving document that will need periodic adjustments. Give your budget a label and jot it down with the date. Next time you take this quiz, compare your score and see your progress.

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Rookie: 4-5 areas needed adjustment. Your budget may be new or you may have a lot of changes in your life that require updates. 

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Competent: 2-3 areas needed adjustment. Your budget has been in play and working hard for you, but still needed a refresh. 

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Proficient: 0-1 areas needed adjustment. You had some good reminders but are feeling confident with how your budget is supporting your goals.

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How did yours do? Notice "expert" is not a grade. That's because frequent monitoring and changing is important for longevity. The key isn't perfection, it's to be content with your budget for now and modifying it when your needs change. 

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Need more support?

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Budgeting is a skill and like any skill, it takes time and practice to get proficient. MyBudgetCoach offers built-in budget coaching with easy access to the coach of your choosing. Book a call with your coach for more individualized support!

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