DOING THE MATH EXACTLY HOW WELL DO YOU MANAGE ALL YOUR MONEY? WHAT'S YOUR SCORE?

Byline: Evan Pondel Staff Writer

Access to credit has never been easier these days, making it increasingly more difficult to save.

Even fast-food restaurants have installed credit card machines, allowing customers to swipe their plastic for a hamburger and fries.

``It's almost as if these companies are trying to stick an IV in any way they can,'' said George Thompson, a financial adviser based in Sherman Oaks and the author of ``Training Millionaires.''

Sure, there are several options for individuals and families interested in saving for the future. But Thompson said the problem is that many people don't know where to start.

And yet another obstacle: Who can you trust?

The number of federally registered financial advisory firms that could face pending disciplinary action has jumped about 30 percent in the past year, according to a May 2004 report by the Investment Counsel Association of American, a nonprofit trade group that represents investment-advisory firms.

David Schult, a personal-finance lecturer at California State University, Long Beach, said no matter what an individual or family's method, creating a budget is imperative.

To do that, ``you should sit down and immediately determine what your needs are instead of your wants,'' he said. ``Then it's time to control yourself. There's no reason why you need to buy everything on sale.''

Schult also suggests prioritizing income. He said about 10 percent should go toward long-term savings, 20 percent allocated for short-term savings and approximately 70 percent devoted to house payments.

As for controlling credit card use, consumers should ask themselves: Would I buy this if I was paying cash?

``If you wouldn't pay cash, chances are you shouldn't be buying whatever you're looking at,'' said Gary Foreman, publisher of dollarstretcher.com.

But advice is cheap. Even costly if you are sitting around all day listening to personal-finance gurus. So grab a pencil and test your own saving skills. It could be time to stretch that dollar more efficiently.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com

Adding it all up

Find out how well you fare by assigning points ranging from zero to the maximum value noted in parenthesis. Then, add up the points and compare your score with the grading scale.

Your budget

The checkbook is balanced every month. (10 points)

At least 10 percent of your paycheck is deposited into a savings account. (10 points)

Money for groceries and other weekly expenses is set aside at the beginning of the week. (5 points)

Vacations and other travel expenses are accounted for at least six months before a trip. (5 points)

You have an emergency account with at least enough money to last you and your family a year. (5 points)

Managing your debt

Your credit card debt is paid off every month. (10 points)

Monthly credit card bills are never higher than the amount of money you have in your checking account. (10 points)

Your debt is shrinking and savings is growing. (10 points)

You review your credit card statements, accounting for periodic finance charges or over billing. (5 points)

There are no more than two credit cards, excluding debit cards, in your wallet. (5 points)

Your investments

The risks of your investments are identified. (10 points)

Stock portfolios are well diversified, with investments in multiple sectors. (10 points)

At least a third of your investments are tangible, such as real estate. (5 points)

A portfolio manager handles your stock trades. (5 points)

A majority of your investments are longer term. (5 points)

Your taxes

Documentation on both expenses and income are readily available. (10 points)

You understand tax credits. (10 points)

Taxes are prepared at least one month in advance of April. (5 points)

Tax preparation fees and preparation software are always deducted. (5 points)

You take advantage of tax rewards for driving an environmentally sound car. (5 points)

Retirement planning 

A long-term care plan is already in the works. (10 points)

A will is prepared. (10 points)

Investments, in addition to Social Security, are anticipated before retirement. (5 points)

Your mortgage is already paid off. (5 points)

Individual Retirement Accounts are maximized. (5 points)

THE ANSWERS

Note: Not all of these topics may be relevant to your life. You may have to eliminate topics and adjust the grading scale accordingly.

A (180-162): Your personal finance skills are well-honed. But don't be overconfident. Make sure your guard is up. A few weeks of laziness could compromise months or even years of hard work.

B (161-144): Overall, a good job. But improvement is necessary. Revisit the subjects that could use some work. Then take the quiz again in three months. A few more points could certainly make a notable difference.

C (143-126): Your personal finance skills are at a pivotal stage. Start exploring options on how to better prioritize this part of your life. Seeking professional help could be necessary.

D (125-108): All is not lost. But you are far from achieving financial goals. Start thinking about where you want to be in 10 years. Now figure out what it's going to take to get there. Work on each subject diligently.

F (107-0): Either several of the topics are not relevant to your life. Or, you are in serious need of a financial adviser. Fortunately, there are financial advisers to fit almost every individual or family's profile. Consult your bank for starters.

CAPTION(S):

2 boxes

Box:

(1) Adding it all up (see text)

Sources: David Schult, lecturer at California State University, Long Beach; George Thompson, financial advicer and author of ``Training Millionaires''; Gary Foreman, publisher of dollarstretcher.com

(2) THE ANSWERS (see text)