If you have not heard of tort law, it’s a system of civil law that revolves around liabilities and how to make a person whole from a loss. It can seem tedious and complicated. However, understanding the basic principles can actually help you in your daily life. Not only can it help you avoid becoming a target of litigation, but it also provides insight into how you might make your spending choices with a focus on personal liability. In many ways, smart budgeting is nothing more than smart risk management.
Not all torts involve reckless injuries of people. In fact, most stop short of any kind of physical harm. In each one, the focus is on the inspection of the actions leading to the event. The idea is to find out whether or not a person acted in a responsible manner. Now, the only problem with this, is that there are no clear-cut answers. Specifically, there is no definition for right or wrong in a court.
That said, the smarter you can be about making decisions and managing the risks you face, the more likely you will be successful in avoiding bad situations. You have chances to earn and lose money, just like everyone else. Yet, by taking precautionary measures to limit your exposure, your finances will be stronger.
It is easy to see how more expensive lifestyles come with more risk. However, even budgeting choices can come with varying risk levels as well. For instance, think about how you buy groceries. If you choose organic, you will pay double what you might for traditional food. On the other hand, when you go to buy conventional food and unknowingly pick the chicken with salmonella or a dose of listeria, you may find yourself in the hospital with a terrible foodborne illness. It could even kill you. Now, think about how much money you are saving to eat healthier. Or, think about how much you are spending to eat healthier. Sure, your food bill is higher, but think about how much you actually benefit. Will going to the hospital cost you more or less than what you save each week on groceries?
You may not think about it, but every time you purchase goods and services, you are making choices that involve some risk. Take this scenario for example: You could have dinner at a nice restaurant for two at your favorite gastropub. It will cost roughly $60 with drinks and dessert. Alternatively, you could go to the fluorescent lite, ran down, fast food joint and spend about $20 eating out.
Each option has its merits. However, before making a decision, how about considering what other people say about your choices? Surprising or not, how will your choices be accepted within your social group? What do you think they will think about you eating fast food over and over again? From a liability perspective, you’ve done everything you can to ensure a safe meal. However, financially, you have spent less money to eat okay food over and over again. If you only have a few dollars to spare here and there, it is easy to see how choosing where to eat could help save up for a vacation. Yet, if you spend less often but eat like royalty, you will probably have that luxury vacation sooner.
All life is a system of risks. The riskiest thing you can do is live without a plan. You will eventually find some kind of harm or loss will happen to you. However, you can protect yourself legally and financially. In the legal realm, there are several tort remedies that you might be entitled to depending on the violation. The most expensive civil litigation usually results in money. Yet, it may also require the return of property. That said, financial compensation is what just about everyone can agree to.
One of the most consistent situations in tort cases is a duty of care on the part of the party at fault. This is directly related to the concept of being careful and prudent. You can cause harm by being reckless. Alternatively, you can cause harm by simply not caring for what you are responsible for. When you drive, you have a duty of care to operate the vehicle within the rules and laws of the street. At work, you have a duty of care to complete your assigned tasks. On the highway, you have a duty of care to maintain your vehicle.
When you make financial decisions, you face many opportunities and risks. Of course, there is no end of risk. That said, there are many ways to mitigate it. You can start with the basics. There are many blogs and tutorials that will teach you about the personal finance basics. In fact, you can visit this website to learn more about budgeting.
An ideal budget plan offers the stability needed to maximize your wealth, without taking large risks. You can set a course for success that avoids many common mistakes or puts you into the best position to handle setbacks. More importantly, you will avoid being taken advantage of.
Reading a real life tort law book will help you in this area. Specifically, the greater understanding you can have about the law, the better prepared you will be should things not go to plan. However, there is another aspect to this. Beyond the law, you are forced to consider all of the possibilities. You are encouraged simply to plan as best as you can.
In both scenarios, you have to think through all of the possibilities. You have to understand a problem on a deeper level. Finally, you have to discover how to get what you want from a situation. All of this takes effort and practice. The more you do, the more routine it becomes. Soon, it can become your lifestyle. Your ability to find problems becomes second nature. You will know which side of the road to drive on in England, and how to handle a leaky faucet.
When you think through every situation, both legally and personally, you will be able to plan for a richer life more easily. No matter the price, you will find the legal and financial freedom necessary to enjoy it all.