Stage 1 Recap — Foundations of First Wealth

Question 1

What separates a 'first-time wealth builder' from a regular earner?

• A bigger salary
• A deliberate system that converts income into owned assets
• Luxury purchases
• Higher credit limits

Question 2

Net worth — not income — is the real scoreboard for wealth.

• True
• False

Question 3

The first 'asset' a builder must protect is:

• A stock portfolio
• Their own earning capacity and habits
• Crypto
• A car

Question 4 · select all

Foundational habits of a wealth builder include: (select all)

• Paying yourself first
• Tracking net worth monthly
• Living below your means by design
• Maximising credit card usage

Question 5

Why does an emergency fund precede investing?

• Because shocks otherwise force you to sell investments at the worst time
• Because banks require it
• Because investing is illegal without one
• Because it earns more than stocks

Question 6

Lifestyle inflation is dangerous because:

• It silently absorbs every raise before it can become wealth
• It improves credit scores
• It pays off debt automatically
• It is tax-deductible

Question 7

Starting small consistently beats starting big inconsistently.

• True
• False

Question 8

The 'pay yourself first' rule means:

• Automate savings BEFORE any discretionary spend
• Spend on yourself before bills
• Borrow for treats
• Save whatever is left at month-end

Question 9 · select all

A first wealth builder's monthly review should cover: (select all)

• Savings rate %
• Net worth change
• Debt balances
• Daily horoscope

Question 10

Stage 1 capstone:

• From 'I earn money' to 'I systematically convert income into owned assets'
• From 'save' to 'spend'
• From 'work' to 'borrow'
• From 'invest' to 'gamble'