|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. The crossover point is based on what?
(a) The transition from an enjoyable job to a well-paying job.
(b) The wall chart.
(c) The decision to earn more money.
(d) Traffic patterns during work commute.
2. When can program participants consider retirement?
(a) After working for 20 years in the same field.
(b) After reaching the crossover point.
(c) At age 65.
(d) When total income exceeds expenses.
3. What should frugal people research before purchasing items?
(a) Popularity, quality, durability, and multiple use.
(b) Value, quality, and availability.
(c) Color, style, and multiple use.
(d) Value, quality, durability, and multiple use.
4. What should people be willing to do?
(a) Sacrifice family time for more income.
(b) Work for what they want.
(c) Work more than 40 hours per week.
(d) Sacrifice income for a job that matches a passion.
5. The wall chart's time span is a rough deadline for what?
(a) Achieving financial independence.
(b) Finding a life purpose.
(c) Finding a new career.
6. What should participants do if they don't make a living from their passion?
(a) Find a new passion.
(b) Abandon their passion until retirement.
(c) Find a new job.
(d) Follow their passion unpaid.
7. If people stop buying any extras at all, what are they in danger of doing?
(a) Losing life energy.
(b) Returning to their old habits.
(c) Running out of room on the wall chart.
(d) Buying twice as much the following month.
8. What can cause some people to stop buying any extras at all, after starting to use the wall chart?
(a) Shock over actual income.
(b) Running out of room on the wall chart.
(c) Desire to change thier life purpose.
(d) Shock at their spending habits.
9. Where do the authors recommend finding job-hunting advice?
(a) Friends and family.
(b) "What Color Is Your Parachute?"
(c) "What Color Is Your Safety Net?"
(d) The Internet.
10. A person's crossover point is an estimate based on which type of expenses?
(a) Monthly expenses after retirement.
(b) Food and housing only.
(c) Monthly expenses while they are working.
(d) Food, housing, insurance, and health.
11. What is the main purpose of the wall chart?
(a) To define commitment to the program.
(b) Keep finances on the person's mind, to help them make more conscious choices when spending money.
(c) To replace the monthly chart created previously.
(d) To define values and purpose.
12. What is the true definition of work?
(a) It varies depending on who is defining it.
(b) Full-time employment.
(c) Anything that is not enjoyable.
(d) Life energy spent.
13. What is the most important strategy in following Step 7?
(a) Following a passion.
(b) Conserving life energy.
(c) Choosing a job with high pay.
(d) Reducing monthly expenses.
14. Participants will end up making more money than they spend if they do what?
(a) Follow the philosophy of "no shame, no blame."
(b) Conserve life energy.
(c) Maximize income and minimize expenses.
(d) Retire early.
15. What is Step 8 of the program?
(a) Track investment income.
(b) Further reduce monthly expenses.
(c) Estimate when the crossover point will take place.
Short Answer Questions
1. The wall chart should accommodate data for how long?
2. What is Step 6?
3. What should people do as soon as possible?
4. People should have enough savings to cover expenses for how long?
5. If people invest more money each month, what happens to the monthly interest?
This section contains 566 words
(approx. 2 pages at 300 words per page)