Financial Capability Step 2: Assess Your Financial Situation

As we continue our journey to financial capability, the most important step is to assess your current financial situation. Many don't want to face this step, but it is vital if you want to improve your finances

Now that you have committed to changing your financial situation, the next thing you must do is assess your current financial situation. Facing the fact of your situation is probably the hardest thing you will have to do in order to improve your financial situation.  This step, however, is essential if you want to create a better financial future. No one I have coached was able to conquer their debt without first finding out what they owed.

What if you just can’t go there? For many of us, assessing our current situation is much more than just adding up the numbers. It brings up intense feelings of fear, shame, anxiety, regret, anger and so much more. Sound familiar?

If you’re stuck here, don’t be afraid to reach out for help. You can find a trusted friend to help, for example. Tell them they don’t need to offer solutions. They just need to be there for you, to remind you that you are so much more than the balances on your credit cards.

Even better, talk with a professional credit counselor or trained money coach (I know, shameless plug there.) They understand what you are going through and what you are up against, and will be able to provide objective advice – and help you find solutions.

I won’t make today’s post long because I want you to take the financial assessment quiz below. Don’t worry, I won’t see your answers. This is strictly for YOU. I want you to get a clear picture of where you are financially. Tomorrow, we will dig in and begin the process of laying the foundation of where you want to be in your financial journey.


As Benjamin Franklin warned, “He that can’t be counseled, can’t be helped.”


As a rule, do you?

Always, Sometimes or Never
1. Pay the rent/mortgage payment and utility bills on time?
2. Save at least 10% of your net income?
3. Keep three months net income in reserve for emergencies?
4. Plan ahead for large expenses?
5. Set and keep financial goals?
6. Follow a budget?
7. Comparison shop?
8. Regularly review your credit report?
9. Examine your checking account statements often?
10. Continue your financial education?


Add your points using the column provided. Never = 0 points, Sometimes = 1 point, Always = 2 points.

0-10 Points: Indicates a need to take control of your finances; following the 30 step plan will go a long way to achieving this.

11-15 Points: Reflects a good effort to manage your money effectively. The 30 step plan can help determine changes that can be made to improve your financial well-being.

16-20 Points: Demonstrates ability to manage your finances successfully. The 30 step plan can help you continue to make money management a priority.


Leave a Reply

Your email address will not be published. Required fields are marked *

Comment *