A New House – Readiness

XECO 212

The financial consequences is very interesting to me since I have been undecided if I want to purchase a house or invest in a condo. I do understand there is a difference within the financial aspects of the both of them. Some of my family members would tell me how difficult it is to own house but others would say differently. I would have to say the second principle will play a major role in my decision making to purchase a new home.
The second principle which is “the cost of something is what you give up to get it” which means- it has to be something that is not related to cost of the house. As a result, there are two items I would give up to get my house. The first item is going shopping every pay week and the second item is driving my vehicle. By giving up these items it would offer me the opportunity to save money and develop an investment. The investment and saving money could be influences by the marginal benefits and the marginal costs. To have a better understanding about the marginal benefits and the marginal costs, could it be that the cause of marginal benefits is to be willing to pay less to have more and marginal cost is to gain the profitability. Consequently, I am willing to give up the small item (my vehicle and shopping every payday) that I am paying less to gain a much larger item such as purchasing a house.