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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What are two tips for reducing transportation expenses?
(a) Walking to do local errands and retiring early.
(b) Retiring early and buying a new car.
(c) Buying a new car and learning to do basic auto maintenance.
(d) Walking to do local errands and learning to do basic auto maintenance.

2. What should frugal people research before purchasing items?
(a) Value, quality, durability, and multiple use.
(b) Popularity, quality, durability, and multiple use.
(c) Value, quality, and availability.
(d) Color, style, and multiple use.

3. What is the best method of choosing which expenses to reduce or eliminate?
(a) Use answers to the three questions from Chapter 3.
(b) Compare income to expenses on the wall chart.
(c) Add up the plusses and minuses on the monthly chart.
(d) Use answers to the three questions from Chapter 4.

4. What is the best thing to do with the interest received?
(a) Reinvest it.
(b) Purchase a larger home as a hedge against inflation.
(c) Put the money under a mattress for a rainy day.
(d) Purchase rental properties.

5. What is the main pitfall of combining work with true passion or enjoyment?
(a) Enjoyment goes against the puritan work ethic.
(b) Having to compromise in order to satisfy someone else.
(c) Passion doesn't always make up for lack of talent.
(d) Enjoyable jobs don't command respect.

6. What should retired people do with their excess monthly income?
(a) Determing a new crossover point.
(b) Help other family members reach the crossover point.
(c) Use it to buy life energy.
(d) Reinvest it or use it to do new projects.

7. Paying attention to every thought and deciding whether to act on each thought is crucial to what?
(a) 1,000,001 SURE WAYS TO SAVE MONEY.
(b) Life energy.
(c) Fulfillment.
(d) 1,001 SURE WAYS TO SAVE MONEY.

8. Statistically, how many Americans are overweight?
(a) One-third.
(b) Two-thirds.
(c) Three-fourths.
(d) Half.

9. A person's crossover point is an estimate based on which type of expenses?
(a) Monthly expenses after retirement.
(b) Food, housing, insurance, and health.
(c) Monthly expenses while they are working.
(d) Food and housing only.

10. What should people do about unusual extra expenses, such as medical bills or birthday parties?
(a) Categorize them as "gazingus pins."
(b) Create an extra chart to track them.
(c) Accept them as a normal part of financial life.
(d) Avoid them whenever possible.

11. What should participants do if they don't make a living from their passion?
(a) Abandon their passion until retirement.
(b) Find a new passion.
(c) Follow their passion unpaid.
(d) Find a new job.

12. How does eating a proper diet make sense financially?
(a) Losing weight means no money spent on gym memberships.
(b) Eating three meals a day saves money.
(c) Eating good foods can prevent illnesses and reduce medical costs.
(d) Eating less saves money.

13. Most of the 101 SURE WAYS TO SAVE MONEY have what added benefit?
(a) They improve career options.
(b) They increase hourly wage.
(c) They delay retirement.
(d) They are good for the planet.

14. What do the authors describe as "having a high joy-to-stuff ratio?"
(a) Being frugal.
(b) Life energy.
(c) Retirement.
(d) Success.

15. What can cause some people to stop buying any extras at all, after starting to use the wall chart?
(a) Desire to change thier life purpose.
(b) Shock at their spending habits.
(c) Shock over actual income.
(d) Running out of room on the wall chart.

Short Answer Questions

1. Participants will end up making more money than they spend if they do what?

2. What is the meaning of the Spanish word, "aprovechar?"

3. What is one advantage of estimating the likely timing of the crossover point?

4. How does the realization that not all work is paid add life to retirement?

5. Which of the following is the one and only thing that a job should be about?

(see the answer keys)

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