Budgeting and Keeping Records – Finance

1. Consumers should prepare a budget and be concerned about financial planning so that they know they have enough money to spend every month and to not go in debt. If the person has a disposable income in the end, he or she is doing a good job planning and regulating spending.

2. Fixed expenses are those that remain constant, at least in the short run and variable expenses are those that change according to needs and short term goals.

3. Records of Income and expenses, Statement and Net Worth, personal property inventory, and Tax Records.

4. It is important to maintain all of these records so that you know how much you are spending on everything and how much disposable income you get after you paid all of your taxes. Also it tells you whether you are in debt or not

5. The person property inventory record is important in case of a fire, theft, and property damage. All of these records will greatly help when making claims to all these unfortunate events, to the insurance companies.

6. Just in case when the taxes are being looked at by the IRS, or other agency, you will always see if everything was done properly. It is good to keep all these records

7. An express contract is in writing, while the implied contract is a mutual agreement that is not written out.

8. Agreement, Consideration, Contractual capacity, Legality, Genuineness of assent, and legal form

9. Buying a car, buying a house, buying a stock.

10. A void contract is legally not enforceable in a court of law. A voidable contract is one that has potential to be void. For example, if a 16 year old goes into a contract with a 30 year old, this will be voidable based on the 16 year olds decision because he is legally not aloud to go into a contract, so he can cancel it at any time. The contract is only voidable to the 16 year old, not the 30 year old.

11. The most likely used negotiable instruments are checks.

12. Negotiable instruments must:

a. Be in writing and signed by the maker
b. Contain an unconditional promise to pay a definite amount of money
c. Be payable on demand or on a fixed or determinable future date.
d. Be payable to the order of a particular person or to the holder of the note
e. Be delivered to the payee.

13. Consumer responsibilities in contract
a. Understand all clauses and terms contained in the agreement. Do not sign it until you have read it; your signature acknowledged that you have read and you understand the contact.
b. Keep a copy of the agreement. Put it in a safe place for future use.
c. Be sure the agreement is dated correctly
d. Be sure all blank spaces are filled in or marked out and that no changes have been made after you have signed it. Your initials at the bottom of each page will prevent substitution of pages
e. Be sure all provisions agreed upon are written clearly. Because interpretation may vary, vague phrases are often not enforceable.

14. A filing system is important in holding all of you important documents that you may have acquired through contracts, sales, and other common paper works things. I would chose a filing system with warranties, utilities, travel, subscriptions, medical, insurance, household documents, entertainment, correspondence, and automobile.