It can be all too easy for your eyes to glaze over when the subject of personal finance comes up and you can end up consigning the difficult decisions to the too hard basket.

But often, taking some basic steps can have a real and lasting effect on your financial health. Try our financial health quiz to see how you shape up.

Budgeting

Whats your usual monthly expenditure?

a)      my budget plan details my exact monthly outgoing in various categories.

b)      I have a rough idea from receipts and bank statements.

c)      I dont have a clue my spending varies so much, its difficult to keep track.

Borrowing

You owe $500 on your credit card and the payment is due today. But youve had your eye on an outfit costing a similar amount and its the final day of the sale. What do you do?

a)      pay off the credit card and go without the outfit.

b)      pay off the credit card and buy the outfit on the same credit card.

c)      buy the outfit and worry about the credit card later.

Large Purchases

Youre buying a new car and the salesman tries to interest you in finance. How do you respond?

a)      decline the offer. I plan to pay in cash from my savings.

b)      consider the offer but shop around for the best loan.

c)      accept the finance and worry about the repayments later.

Financial protection

You have just broken your arm while skiing. How do you manage?

a)      my income protection insurance will provide replacement income and protect my family until I recover.

b)      Hopefully my savings will cover any shortfall.

c)      Not sure. Ive never prepared for this scenario.

Retirement planning

What standard of living will you enjoy in retirement if you continue to follow your current savings plan?

a)      my superannuation and other investments are ont rack to provide us with comfortable retirement.

b)      Ive consolidated all my super into one account and hopefully this will provide us with a modest standard of living.

c)      Ive got no idea how much Ive got in my various super accounts.

Scams

A salesman calls you with a once-in-a-lifetime opportunity to invest in a secure property financing note offering a high rate of return. How do you respond?

a) decline the offer. Its risky and I already have a diversified investment plan.

b) sounds interesting but Id need to do more research.

c) take up the offer no risk, no reward.

How you scored

Mostly As: youre in robust financial health but theres no room for complacency.

Mostly Bs: you obviously try and stay on top of your finances but theres still room for improvement.

Mostly Cs: youre in the financial equivalent of intensive care and radical surgery is required.