Decision making is part of a person’s every day daily routine. We all wake up and have to decide what we are going to wear for the day. Some of us may even decide not to get ready at all. The magnitude of peoples’ decisions is dependent on many factors. It is important to thoroughly analyze a situation before making decisions.
My family and I had lived in Newport News, Virginia for about three years. My wife and I had rented our homes ever since we got married. In 2009, I finally received military orders to be stationed back home in beautiful Coronado, California in San Diego County. We had a common obstacle, where in San Diego did we want to live and did we really want to rent? “There’s no question that buying a house makes sense for some folks, but mainly for non-financial reasons. Owning a home gives you stability (you’re not at the mercy of a landlord) and freedom (you can do what you want with the place). But financially, it’s not always the best bet.” (Roth [insert & “comma” and “Snell”] 2012) We had to figure out if owning was for us. First we went through all of our finances and determined how much dispensable income we had. Fortunately, we didn’t have much debt which gave us a pretty large positive margin between our income and our debts. We then determined how much we would likely spend on variable expenses such as gasoline, entertainment, utilities, etc. Once we determined how much we could afford to pay for rent or a mortgage, we immediately wrote a list of all the cities we wanted to live in San Diego according to school districts and safety for our children. Next we did rental searches and price searches for home in the cities we wanted to live in to get an idea of how much we would be paying for rent or a mortgage and if it was within our allowable spending limit. “The third stage of decision making involves determining the value or adequacy of the alternatives that were
References: Bateman, T., Snell, S. (2011). Management: Leading & Collaborating in a Competitive World (9th Ed.). (pp. 91-92). New York, NY: McGraw-Hill Irwin. Roth, J. (2012, December 03). Is it better to rent or to buy? Time Business & Money. Retrieved March 30, 2013, from http://business.time.com/2012/12/03/is-it-better-to-rent-or-to-buy/