February 5, 2010. To live within your means, you must know your net financial expenses. These are the monthly total of your fixed, variable and discretionary expenses. To calculate your net financial expenses, you need your total fixed monthly expenses and your average monthly variable expenses.
In sum, there are essentially six elements to a contract. For a contract to be considered valid, there must be an offer, acceptance by another party, an exchange of something of value or consideration, mutually agreed upon terms, both parties must be free of mental illness and the terms must not break any laws.
Verbal Contracts: No Signature Required. If you make an agreement with someone that has all the elements of a contract (offer, acceptance, consideration, and intention), you are both competent to do so, and the contract is for less than $500, you often do not need a written contract.