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

Multiple Choice Questions

1. 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.

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

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

4. What are 1,001 SURE WAYS TO SAVE MONEY?
(a) A list of coupon resources.
(b) Participants should look at their own expense lists and make their own list of ways to save.
(c) A list of strategies to achieve early retirement.
(d) A list of contacts for business networking.

5. What is the recommended size of the wall chart?
(a) From 18 to 22 inches tall, and from 24 to 36 inches wide.
(b) From 18 to 24 inches tall, and from 22 to 36 inches wide.
(c) From 18 to 22 inches wide, and from 24 to 36 inches tall.
(d) From 18 to 24 inches wide, and from 22 to 36 inches tall.

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

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

8. What should a participant plot on their wall chart each month?
(a) Hours worked.
(b) Income and expenses.
(c) All purchases.
(d) Life energy spent.

9. People should have enough savings to cover expenses for how long?
(a) Four months.
(b) Six months.
(c) One year.
(d) Nine months.

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

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

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

13. What is one sure way to save money?
(a) Find a higher-paying job.
(b) Stop trying to impress other people.
(c) Find alternative housing.
(d) Retire early.

14. The crossover point is based on what?
(a) Traffic patterns during work commute.
(b) The transition from an enjoyable job to a well-paying job.
(c) The wall chart.
(d) The decision to earn more money.

15. Monthly investment income is calculated by determining current excess money each month, then doing what?
(a) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then dividing by 12.
(b) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(c) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(d) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then dividing by 12.

Short Answer Questions

1. What is the main purpose of the wall chart?

2. What should frugal people research before purchasing items?

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

4. How should investment income be tracked?

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

(see the answer keys)

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