The concept of economics is the trade-off between wants and necessities.

I learned how to
balance my desires and necessities by using a mock amount of money throughout this process.
My monthly pay was $2,838 and my yearly pay was $45,400. My apartment, my automobile, and
my groceries are the main focus of my spending making the three essential components of my
project.

I made the decision to rent a place for myself that cost less than $1000 my apartment is $910
a month. It has a washer and dryer and four resort-style swimming pools, a tennis court, sand
volleyball, a court fitness center, grilling stations, and an on-site dog park, among other nice
features. Despite not being my dream place to live or being a fancy apartment, it is affordable
and perfect for my needs. I spend $373.76 on food per week on groceries with most of the
foods being high in protein and basic carbs and fats that I need to perform in the gym.

I purchased a 2012 Honda Accord Lx as my vehicle. It costs $16,587, and $339 each month,
and  $136 in auto insurance. I had originally planned to spend $26,200 on an Infinite Q50, but
the monthly payment and auto insurance were so high that I couldn't put any money away for a
rainy day. I also considered the reasons I would use my car, which would only be to get to and
from work, as well as other locations, and realized that the Honda would be more cost-
effective overall because the Q50 would require more regular repairs and gas. That's when I
realized the Honda would be the best decision.

If I had an extra $200, I would definitely use it to build an emergency fund since you should
always be ready for the unexpected. It's very common for you to experience a sudden sickness
I usually get sick out of nowhere and that can cause lost days at work and loss in money or
random accidents or, a loss of employment, or even an unexpected house or automobile repair.
Dealing with these unexpected events can be significantly lessen when having an emergency
fund.

If I had $200 less of my salary, I would probably cut from my short-term vacation savings to
El Salvador and probably go to somewhere in the country instead or I would cut from my
Netflix or YouTube music, and the money spent while hanging out with friends.
Instead of hanging out with my friends and spending money every time I can stay
home and do something else or just spend no money when I hangout with them.

In conclusion, setting up a budget promotes financial stability. By keeping track of

expenses and committing to a plan that works since you cans see where your money
is going, a budget makes it easier to save money for items that you want long term
or short term. Generally, having a budget helps individual's build financial stability
throughout their life span.