Scarcity forces us to make choices. Our choices have a huge impact in our income and expenses. We have to learn how to allocate our resources efficiently through the choices we make. It’s not about what your earn when it comes to scarcity but about what is left after getting the goods and services you want or need.
Here is an Economics guide and net income factors that influences us in our everyday life:
There are pros and cons to renting a property or buying one with a mortgage. We have to choose which will benefits is more because both choices involve risks. For paying rent, you’ll have to pay monthly or annually. For buying a new house, you’ll have to face home maintenance and house loans, if any.
Employment plays a vital role in your income. It also comes with factors that influence your income like having a college degree and whether you are working full time or part time. These factors can increase or decrease your pay roll. Your work ethics also play a factor in this. If you are not doing your best in the work place, then there is, for sure, a deduction in your salary.
How you get around can also affect your income. Taking the bus every day to get to school or work is a daily expense that you can’t avoid. If you have a car, you’ll have to face the monthly or annual car loans you’ll have to pay.
The more jobs you have the more you can contribute to your overall household income. It’s better to have more sources than to have one. It gives you backups for your backups. For example, if your spouse loses his or her job, you’ll still have income flowing through another source. Of course, your spouse’s unemployment will affect your income but not as greatly as if having only one source.