1. What do the authors suggest that people divide their spending into?
(a) Categories that make sense for them.
(b) Categories determined by life energy.
(c) Three columns.
(d) Categories defined in Chapter 3.

2. How often should people total their income and expenses?
(a) Daily.
(b) Whenever a paycheck is deposited.
(c) Once a week.
(d) Once a month.

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

4. What should people do with their extra money, once they earn more per month than they spend?
(a) Work fewer hours per week.
(b) Retire.
(c) Purchase a long-desired luxury.
(d) Turn it into an interest-bearing investment.

5. What do most people claim to value more than money?
(a) Their lives.
(b) Their jobs.
(c) Their health.
(d) Their talents.

Short Answer Questions

1. If people spend half of their time sleeping, eating, and doing everything necessary for maintaining their bodies, then the other half is available for what?

2. Prestige, status, and power can be reasons for what?

3. How should people handle unusual extra expenses?

4. What is the main pitfall of combining work with true passion or enjoyment?

5. What is an important aspect of the second half of Step 2?

(see the answer key)

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