A_New_House...Readiness

The one thing out of the 10 principles that would play a major role in my decision on moving into a new home would be that people respond to incentives. One economist went so far as to suggest that the entire field could be summarized: “People respond to incentives. The rest is commentary.” An incentive is something that induces a person to act. In my work environment I have a base pay but all of my money comes from incentives and that really makes me work harder to get paid even more. So that idea would be easy to apply to my decision on buying a home and building a family. A lot of things come with buying a house there are many things that you have to factor into your decision. In the textbook they used a great example about apples. It was simply saying that when the prices of apples rise, people decide to eat more of another fruit and fewer apples because the apples are more expensive then all of the other fruits. At the time the apple orchards are hiring more workers to harvest because of the benefit of selling the apples are higher. This will help to figure out the best time when to buy a house. I’m not going to buy a house when the market is high and that will led me to pay more then what I should. Gathering all of the facts and making sure that I am not jumping into something will only help to benefit me and my family in the end.