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

Multiple Choice Questions

1. What is Step 8 of the program?
(a) Estimate when the crossover point will take place.
(b) Retire.
(c) Track investment income.
(d) Further reduce monthly expenses.

2. What is the most important strategy in following Step 7?
(a) Reducing monthly expenses.
(b) Following a passion.
(c) Conserving life energy.
(d) Choosing a job with high pay.

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

4. Participants should always remain conscious of what?
(a) All the job opportunities around them.
(b) Inflation.
(c) Life energy.
(d) Impending retirement.

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

6. How do most people define work?
(a) Anything that is not enjoyable.
(b) Full-time employment.
(c) What they do to make a living.
(d) Life energy spent.

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

8. What are some good alternatives to buying what is needed?
(a) Borrowing, trading, and sharing.
(b) Begging, stealing, and borrowing.
(c) Trading, sharing, and retiring.
(d) Sharing, trading, and stealing.

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

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

11. What is the crossover point?
(a) When the amount of investment income is as high as normal monthly expenses.
(b) When the amount of total income is lower than normal monthly expenses.
(c) When the amount of investment income is lower than normal monthly expenses.
(d) When the amount of total income is as high as normal monthly expenses.

12. If people earn more than the minimum needed to pay bills, what should they do with the extra money?
(a) Save it to use later in the program for investing.
(b) Purchase rental properties.
(c) Donate to charity.
(d) Splurge on a luxury.

13. The wall chart should accommodate data for how long?
(a) Five to seven months.
(b) Five to seven years.
(c) Until retirement.
(d) Seven to ten years.

14. What is Step 6?
(a) Creating a wall chart.
(b) Planning for retirement.
(c) Determining net worth.
(d) Minimizing spending.

15. What percentage of useful life objects could people add if they were not so anxious to replace them?
(a) Fifty to eighty percent.
(b) Twenty to fifty percent.
(c) One hundred percent.
(d) Ten percent.

Short Answer Questions

1. Taking care of possessions and avoiding shopping are part of which list?

2. What should retired people do with their excess monthly income?

3. How should program participants adjust their medical insurance?

4. What should people do about unusual extra expenses, such as medical bills or birthday parties?

5. What is a major advantage of separating employment from passion?

(see the answer keys)

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