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Can your finances beat back trouble?

My idea of a personal finance stress test seems to be taking hold.

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The concept is to compare your situation now against the worst possible case – a major

illness, a cut in pay, the loss of your job.

That would give you a sense of where you need to get to work – save more, reduce your risks or set up emergency lines of credit, for example.

In my column, I’ve suggested some questions you should ask yourself.

Here are a few other ideas from a reader who calls herself Catwoman. If you have some questions for a personal finance stress test, I’d love to hear ‘em.

She says to ask yourself:

1. Do you know how much you spend on restaurants, fast food, snacks, and other non-necessities?

2. If your home finances were opened up to your parents, would you be embarrassed? How about your children?

3. Are you saving 10% off the top for your retirement?

4. If a company was run the way your personal finances are being run, would the CEO be arrested for embezzlement?

5. How many other people are relying on your income? If you die, do you have a plan in place for those people?

Here are the four most important question I'd ask -- and the answers:
http://blogs.trb.com/business/columnists/brackey/blog/2009/05/could_your_finances_pass_a_str.html:

Here's my column on a personal finance stress test:
http://www.sun-sentinel.com/features/time-money/money/sfl-harriet-money-051709,0,1621410.column
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POSTED IN: Your Money (119)

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About This Blog

You've got the job of managing your money. No one in school taught you how.

But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money... < More >

Harriet Johnson Brackey Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...< More >

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