Mr Brain's Investing & P.F. ch 8

value

something a person considers important

disposable income

the money you have to spend after all of your monthly taxes and bills are paid

contract

a legal enforceable agreement between two people

financial planning

planning that covers the key elements of a person's financial affairs and is aimed at the achievement of his or her financial goals

need

something a person views as a necessity

expressed contract

parties have stated the terms in words. Oral or Written

fixed expenses

those costs that do not change month to month

want

something an individuals desires, but is not a necessity

variable expense

those costs that vary in amount

implied contract

the terms are assumed

budget

a spending and savings plan based on your expected income and expenses

budget breaker

a large expense that occurs suddenly that destroys a well planned budget

false

T or F. legality, capacity, counter offer, and fraud limitations are the 4 elements of a contract

false

T or F assets plus your liabilities gives you your net worth

true

T or F how someone sets up and organizes their budget shows their values

true

T or F one big idea of the rule of 72 is to start investing early.

true

T or F the first step in planning is to have a goal

false

T or F a short term goal is over ten years from now

false

T or F a $175 pair of Nikes is a necessity

false

T or F your mortgage is considered a budget breaker