Budget essay

Monserrat Romero

4th

How did wants, choices, scarcity, opportunity cost, and tradeoffs 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?

While doing this activity it open my eyes, showing me how much everything cost many. I had to make
some sacrifice and put my needs first then my wants which could wait later in order to make a good
financial decision. The main important needs are housing/a place to live, transportation and groceries in
order to survive in this era. The first thing I decide to get was housing at Brisa at Shawdowbriar at 2840
Shadowbriar Dr, Houston, TX 77077. I have picked a two bedroom apartment with two baths for $1,339
per month. I choose this apartment because it has great qualities in my opinion like coming with a
washing machine, dryer, dishwasher and a patio. This apartment also offer with a gym,
computer/printer room, pool, play ground and a dog park. You may be wondering why I chose a 2
bedroom apartment and 2 bathroom instead of a 1 bedroom apartment because the difference
between the 1 bedroom apartment and the 2 bedroom was that the price was only $100 dollars more
which include second room and bathroom which was a steal in my opinion. I pay for My renter's
insurance about $30/per month and I also pay for my water bill for about $72.93/mo. As well as my
monthly electricity bill is about $98.35.The second thing I decide to get was a car, I decide to get a use
car instead of a new car because it was cheaper even though I might how problems over the years I
decide to save up money. I chose a 2012 Mercedes-Benz M-Class ML 350 of a total cost of $15,850, my
car note is $353 per month for 48 month with a interest rate of 3.3%, as well with a down payment of
$1,000. I decided to have 48 moth plan than a 60 moth plan because even thought I am paying more
monthly the overall total will be less. I got clear cover car insurgence for $146/mo. that includes rental
reimbursement and personal injury protection ,Bodily injury ,etc. The most surprising thing I found out
about this project is that groceries could so expensive especially for a single person. My grocery total
was $314.77 which includes a lot protein , fiber, diary and fruits and vegetables , as well of the basic
cleaning products. After the fact that I spend so much money for my 3 basic needs and I had to make
some sacrificial decision in order to save up money and decide not to spend more than $200 to for my
phone plan and internet and streaming services which comes to a total of $128 dollars which was under
my original budget goal saving me $72. I decide to get streaming services just because it is a cheaper
option as well as the fact that I don’t watch tv that often which mad my not get cable.

If I had found out that I had $200 less than my stated amount, I will probably make some sacrifices
probably cutting off my streaming services, deducting a few grocery items and get rid of my saving that
is a total of $916.82 .I choose this because there thigs I could live off of since I cant really deduct of my
car payment and rent. I could live of my streaming services because I mostly spend my time in my phone
on YouTube. I will get rid of my savings because savings are for future luxury and if I am in need of
money my savings could wait until everything is in the right tract. I will get rid of a few grocery items or
replaced them with a cheaper alternative like cleaning supplies or getting frozen food then fresh.

If I had extra $200, I will probably put it in my emergency fund or for a short term goal like a new
computer. I will put in in my emergency find because it will help you give financial resilience, so you can
handle unplanned expenses without jeopardizing your financial stability or increasing your debt. I will
also put it in a short term goal like a computer because it will help me be more organize and help me
with my job.