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Brandon_T_wk_2_CP - originally planned when we got the...

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Checkpoint Week 1 The purchase of a new house is a very big move but is a necessity when having a new baby. Currently we are living in an apartment so that we could save money, but it is not close to the schools or other things that we will need for the baby. By moving we will be closer to all of the things we need for the baby and will have the space we need. Although we like our apartment there is just not enough space and we would spend too much time and money in transportation. After evaluating our current situation it is apparent that the principle to use would be people make trade-offs. In this principle a person has to give up one thing in order to receive another. We like saving money having our apartment but we are going to have to give it up in order to purchase the house that we need. In our current situation it is more beneficial to invest in a new home for our growing family even though we will not be able to save money like we had
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Unformatted text preview: originally planned when we got the apartment. The additional cost is going to be in moving, maintenance, insurance, and house payment. A plus to the move is that we will save money in areas like transportation being that we are closer to all of the places that we need to visit. By purchasing a house we are acquiring something that will have equity which will give us a solid foundation in our future. To stay in the apartment would not benefit our family and paying rent is money that we are just throwing away. Putting our money into a new home is building equity in our home. After evaluating our whole scenario it is evident that the trade off is a long term benefit do to the equity we will build in the home and the money we will save in transportation cost. Reference Mankiw, N.G. (2007). Principles of economics (4th ed.). Mason, OH: South-Western Cengage Learning....
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