Checkpoint: A New House – Readiness

This particular project is very close to me, as I am currently pregnant and am working to purchase a house for our family. When reviewing the ten principles of Economics, there are several that play a major role in my decision to purchase a house. First, we as a family needed to understand that there are tradeoffs that will need to be made in order to budget in a house purchase. Frivolous spending such as eating out and purchasing various technological gadgets will have to be monitored more closely and possibly stopped altogether. Also, any old debt would need to be paid off first to make room in the budget for the new debt of the house payments. In order to understand what items are considered frivolous and what old debt is priority, we will need to develop a short and long term budget that addresses where we are currently and where we want to be, and lays out a course of action to meet those goals. Also in the budget and course of action we would need to identify the incentives of purchasing a house, as well as the consequences that can occur. For example, what are the positives of the neighborhood and schools in the area? If one or both of the income providers lost their jobs or became unable to work, what plan of action would take place? These questions and many others would have to be taken into consideration to understand the pros and cons to purchasing a