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

Multiple Choice Questions

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

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

3. 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.

4. The numbers along the y-axis should increase by what increment?
(a) 100 or 200.
(b) 1,000 or 2,000.
(c) 1 or 2.
(d) 10 or 20.

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

6. What is Step 7?
(a) Minimizing debt.
(b) Maximizing income.
(c) Reducing clutter.
(d) Increasing life energy.

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

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

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

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

11. What should people do as soon as possible?
(a) Get out of debt.
(b) Retire.
(c) Complete the wall chart.
(d) Find supplemental income.

12. 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) Avoid them whenever possible.
(d) Accept them as a normal part of financial life.

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

14. Taking care of possessions and avoiding shopping are part of which list?
(a) 1,001 SURE WAYS TO SAVE MONEY.
(b) 3 SURE WAYS TO SAVE MONEY.
(c) 10 SURE WAYS TO SAVE MONEY.
(d) 101 SURE WAYS TO SAVE MONEY.

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

Short Answer Questions

1. What encourages family, friends, and neighbors to support the participant's goals in following this program?

2. If people invest more money each month, what happens to the monthly interest?

3. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?

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

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

(see the answer keys)

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