How to Manage your Money BUDGETS

What is Money Management Planning how to get the most from your money Why?? What???

Opportunity Cost Trade –off What is given up when making one choice instead of another

Budgets Disposable income Financial Plan Budget Net Worth Assets- Liabilities = Net Worth

Contracts and Agreements Contract Legally enforceable agreement between 2 or more parties Express contracts  Stated terms in word  Can be oral or written Implied contract  Unwritten  driving

Elements of a contract A contract must be binding for it to work Some must be written Sale of real property Cannot be fully performed in less than 1 year < $500 When someone pays debts of another Must have: Agreement Consideration Contractual capacity Legality

Valid offer is made and accepted Counteroffer Voluntary intent to be bound ‘click on acceptance’ Genuine agreement Fraud Duress Undue influence Agreement

Each person gets something in exchange Can be: Object Money Promise Service Cannot be one-sided Consideration

Competency of parties Legally capable Mental deficiency Illness Minors Limited capacity Set aside contractual obligations Married <18 Contractual Capacity

Lawful Illegal contracts not enforceable Form specific Lease Real estate Loans Legality

Consumer Responsibility Complete Write all terms clearly Dates amounts etc Seller supplied all information Understand No changes copy

Negotiable Instruments An unconditional written promise to pay a specified sum of money upon demand of the holder Promissory Note Co-signer

Warranty Guarantee Product Implied written

Filing System Why???

Personal Records Net Worth Statement W-2s, paystubs Personal Property Tax Records