how to manage your money budgets. what is money management planning how to get the most from your...
TRANSCRIPT
How to Manage your Money
BUDGETS
What is Money Management
Planning how to get the most from your money
Why??What???
Opportunity CostTrade –offWhat is given up when making one choice
instead of another
BudgetsDisposable incomeFinancial PlanBudgetNet Worth
Assets - Liabilities = Net Worth
Contracts and AgreementsContract
Legally enforceable agreement between 2 or more parties
Express contractsStated terms in wordCan be oral or written
Implied contractUnwrittendriving
Elements of a contractA contract must be binding for it to workSome must be written
Sale of real propertyCannot be fully performed in less than 1 year< $500When someone pays debts of another
Must have:AgreementConsiderationContractual capacityLegality
Valid offer is made and accepted
CounterofferVoluntary intent to be bound‘click on acceptance’Genuine agreement
FraudDuressUndue influence
Agreement
Each person gets something in exchange
Can be:ObjectMoneyPromiseService
Cannot be one-sided
Consideration
Competency of partiesLegally capable
Mental deficiencyIllnessMinors
Limited capacitySet aside contractual obligationsMarried <18
Contractual Capacity
LawfulIllegal contracts not enforceable
Form specificLeaseReal estateLoans
Legality
Consumer ResponsibilityCompleteWrite all terms clearlyDates amounts etcSeller supplied all informationUnderstandNo changescopy
Negotiable InstrumentsAn unconditional written promise to pay a
specified sum of money upon demand of the holder
Promissory NoteCo-signer
WarrantyGuaranteeProductImpliedwritten
Filing SystemWhy???
Personal RecordsNet Worth StatementW-2s, paystubsPersonal PropertyTax Records