The Practical Applications of Economics

This guide explains how we can apply economics to our daily life. Economics deals with decision making, everything you do like how you will spend your money wisely, how you will budget your time, and how you react in every issues that involves your everyday life. This guide gives us many tips on how to approach and resolves problems in everyday life from buying a house to making a career choice. It even explains whether or not we should be playing the lottery or not, as well as avoiding “get rich” schemes that we might be approached with. This guide also helps become more realistic on making a career decision and gives us information on the option of becoming an economist.

Paying Rent: Is it Throwing Good Money Away?

One of the American dreams is to own a house. Many want to own a home just for the simple pride of owning it. Other benefits of owning a house is the ability to customize it to your own tastes and thereby give you more of a feeling of being "at home." Many people seem to believe that paying rent is throwing away money. There are many things to consider when deciding whether to rent or own. We need to look into what the total cost will be a month including opportunity cost of down payment, insurance on the home, repairs, and miscellaneous. After making our calculations we then must decide whether it would be more beneficial and or cost efficient to rent or own. Let's say that you could rent equivalent housing at $450 a month. Should you rent? The answer depends on your prediction about the appreciation in the market value of the house. If you think that it will appreciate at more than $75 per month ($900 per year) then you should buy the house. If you think it will appreciate at less than $75 a month, you should probably rent. However, just because you may have observed housing prices going up in some cities doesn't necessarily mean that the market value of the house you choose to buy will go up every...