How to Manage your Money

BUDGETS

What is Money ManagementPlanning 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