Debt, Personal Finance

IQ or EQ?

I took the Myers-Briggs Type Indicator personality test on Truity.com. I think I know myself quite well, but I’m always curious to see what these types of tests reveal. This test indicates that I am an INTJ personality type, known as the “Architect” or the “Strategist”. Introverted, Intuitive, Thinking, Judging. People with this personality are highly analytical, creative, and logical. We’re rare. We make up about 2% of the population.

So, I should be wealthy, right? I wish…

There’s another way of measuring personality types:

1. Intelligence Quotient (IQ) – measures reasoning and logical ability

2. Emotional Quotient (EQ) – emotional intelligence. A measure of how a person handles his/her emotions in daily life.

3. Spiritual Quotient (SQ) – Related to how well we are able to understand the meaning of life, to self-awareness and peace of mind.

4. Adversity Quotient (AQ) – Ability to handle adverse situations in life. I first came across this concept in an article about trauma survivors.

5. Creativity Quotient (CQ) – How able are you to think outside the box? Creativity is putting innovative thoughts into action.

What I have discovered is that I have been largely governed by my EQ – my Emotional intelligence – rather than by my IQ. My father came through the Great Depression and he was a saver. I’ve inherited some of his habits; I record every cent that comes in and goes out of my bank account. Unlike him, I was a spender. For whatever reason, having extra money on hand just didn’t feel right. That’s a subject for another post.

I say I was a spender. I have a vacation trip coming up in September, and I am saving towards that. Planning for this trip has been enough to make me do a 180 degree turn in my financial habits. I have very carefully laid out how much I will save each month to reach my goal. However, I am realistic. I allow for some “wriggle” room.

At long last I am on the road to financial health. It’s never too late for progress.

Until next time,

Affectionately,

Penny

Personal Finance

Reality Check

I believe the first step, when we are being completely honest with ourselves, is to take a reality check. Where am I exactly? Is it as bad as I think? Is it better – or worse? I won’t know until I crunch some numbers.

Let’s take the plunge:

                                                     Balance               Interest Rate       Minimum Payment

Credit Card A                           $ 8,522.59                     19.99%                        $ 224.00

Credit Card B                           $ 1,435.15                      19.99%                        $   36.00

Credit Card C                           $ 1,968.65                        8.99%                        $   66.50

Overdraft A                              $ 2,519.81                       21.99%                       $   54.75

Overdraft B                              $    481.38                       19.99%                       $   12.51

Loan                                          $ 2,945.00                          0.00%                      $    86.60

TOTALS:                                  $17,872.58                                                          $  480.36

So, that’s the truth of the matter. Needless to say amounts will vary as deposits and purchases are made. On the plus side, I have $51.11 in savings. Now you know the nuts and bolts of my financial situation, as do I.

This income period, which occurs in two days, I will pay off the loan with the exorbitant interest rate. I am always able to meet my minimum payments and often pay more. Credit cards and overdrafts are like lines of credit. I can make a substantial payment, but before you know it I have used my available cash and I am dipping in once more to my overdraft or credit card room to keep me going. Does this sound familiar?

My objective, now that I know exactly where I stand, is to whittle away at this debt. I know how much I can comfortably use each month to draw it down. Next post I’ll explore an excellent tool for figuring out where to go next!

Until next time,

Affectionately,

Penny