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

Multiple Choice Questions

1. Where do the authors recommend finding job-hunting advice?
(a) "What Color Is Your Safety Net?"
(b) "What Color Is Your Parachute?"
(c) The Internet.
(d) Friends and family.

2. If people stop buying any extras at all, what are they in danger of doing?
(a) Running out of room on the wall chart.
(b) Losing life energy.
(c) Buying twice as much the following month.
(d) Returning to their old habits.

3. How does the realization that not all work is paid add life to retirement?
(a) Retired people are happy because they no longer work.
(b) People who do not work after retirement live longer.
(c) People who do not work after retirement have fewer health problems.
(d) Retired people know they can still be useful.

4. When can program participants consider retirement?
(a) After reaching the crossover point.
(b) After working for 20 years in the same field.
(c) When total income exceeds expenses.
(d) At age 65.

5. Where should monthly investment income be tracked?
(a) On a new chart.
(b) On the income and expense charts created in Chapters 2 and 3.
(c) On the wall chart.
(d) On reports from investment brokers.

6. What usually happens after a person retires from their job?
(a) Expenses go down.
(b) Expenses and income stay about the same.
(c) Income goes up.
(d) Expenses go up.

7. What is one difference a frugal person should consider when choosing between two similar vehicles?
(a) Available options.
(b) Resale values.
(c) Prestige.
(d) Foreign-made vs. American-made.

8. A line should be drawn connecting the current month's income to what?
(a) The previous month's expenses.
(b) The previous year's income.
(c) The current month's expenses.
(d) The previous month's income.

9. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?
(a) Avoid non-traditional housing.
(b) Buy a larger home as a hedge against inflation.
(c) Consider non-traditional housing.
(d) Buy and manage multiple rental properties.

10. If people invest more money each month, what happens to the monthly interest?
(a) The interest decreases each month.
(b) The interest must be withdrawn from the account.
(c) The interest increases each month.
(d) The interest becomes tax-deductible.

11. What is the main purpose of the wall chart?
(a) To define values and purpose.
(b) To replace the monthly chart created previously.
(c) Keep finances on the person's mind, to help them make more conscious choices when spending money.
(d) To define commitment to the program.

12. What should people be willing to do?
(a) Work for what they want.
(b) Sacrifice family time for more income.
(c) Sacrifice income for a job that matches a passion.
(d) Work more than 40 hours per week.

13. The wall chart's time span is a rough deadline for what?
(a) Retirement.
(b) Achieving financial independence.
(c) Finding a life purpose.
(d) Finding a new career.

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

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

Short Answer Questions

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

2. How should investment income be tracked?

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

4. If "work" is different from "paid employment," then which of the following is true?

5. The numbers along the y-axis should increase by what increment?

(see the answer keys)

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