Budgeting Essay

Jennifer Peguero 2nd Period

How did wants, choices, scarcity, opportunity cost, and trade offs affect you
during this activity? What would you cut if you had $200 less than you stated
amount? Why? What would you add if you had $200 more than your stated
amount? Why?

Decisions made with money must be calculated whether their wants or needs
and the affordability. For example, my 3 biggest needs are groceries, a car, and
my home. I’m lucky enough to have gotten a job as a pediatrician, and I'm
lucky enough to have landed this job since I'm able to treat myself a bit more to
luxuries. However, I think about why and where I’m spending my money
before spending it. For example, I chose a used 2018 Kia soul+ with a price of
$19,998 which is affordable in my opinion compared to other cars, such as a
Cadillac or Ferrari. But since all I wanted was an affordable car that could get
me to places and last me a good couple of years, I decided to get the used 2018
Kia soul+. The used 2018 Kia Soul+ is a fairly new model of only 4 years and has
a mileage of 20,797 miles. Although I chose a car with low mileage, a newer car
would last longer, but instead, I paid for a car that won’t last as long, but I
would have a lot of money left over for groceries, my rent, and any other
things, based on me choosing my needs over my wants.

My home is a small 551 Sq. ft, at Hayden at Enclave apartments, for $1,084.00
per month. While looking for affordable apartments it was quite hard to find
one that suited my needs and was within my budget. I thought back that it was
a good idea that I bought a cheaper car instead of a brand new one so that I
could afford to pay rent for my apartment. My apartment offered a lot of
amenities such as a washer and dryer, which is a must-have for me. They also
offer a gym, pool, and gated access which is another must-have for me because
it doesn’t let anyone who isn't supposed to go in there, they also include a
technology package so I wouldn't have to pay extra for internet or cable. A lot
of money also goes to groceries, I spend a total of $168.10 just on groceries,
which is quite a large expense, but it’s a needed one.
If I had $200 less than my income, I would probably cut down on the
entertainment costs, such as eating out, spending time with friends, and
getting rid of one of my subscriptions on either Netflix, Disney+ or Spotify or
just altogether. I spend quite a lot on these things so it would seem like the
right thing to cut these down. Even though I am aware that those are wants and
not needs, I would still want to do them because they are just those little bits of
life that you enjoy. I would have more precaution and self-control.

If I had $200 more, I would probably spend it on eating out, getting drinks, and
spending time with friends a lot more than just once or twice a month. For
example, I would eat at my favorite restaurants more, instead of only once a
month, spend it on things that I don’t need but want. I wouldn’t have to be as
mindful of spending. If I didn’t spend the $200, I would save it up for a long-
term goal, such as a trip to a different country, or an expensive gift for my
parents, or myself.