Purchasing a new home can be an exciting experience in someone's life or it can be a big deal with serious consequences. I was lucky enough to get a house with a VA loan and the process was a little easier because I didn't have to do most of the tasks myself. I advise all my friends and family, or anyone looking to buy a home, to consider many factors before making that decision. Economic principles play a vital role in the decision-making process when you want to buy a house. At the time, when I bought my house, I didn't know this, but now that I have more knowledge about economic principles, I realized that I was applying all these steps unintentionally. Overall, buying my home was a big decision, and I understand the consequences if you don't consider factors like economics, marginal costs and benefits, or even the right timing of supply and demand.Principles of economicsThe principles of economics are what consumers regularly use when it comes to trade, costs, products and services. This relates to my purchasing decision when I purchased my home because every principle needs to be considered. Here's how, for example, to consider people who face compromises. This principle is based on giving up something else to get one thing. In this particular case, I sold one of my vehicles to help me make the down payment on my house. This was a sacrifice for me. Another principle that applied to me was that the cost of something is what you give up to get it. I felt that buying and selling my vehicle was a bold sacrifice, but I really wanted a home, so I sold my vehicle so that my family and I could have more space and better living conditions. Finally, last but not least is the principle that people respond... middle of paper... to purchasing any item, and if done at the right time, it can produce excellent results. One thing I learned from taking this economics class is that economics is the brain of the world. This is how investors get rich, companies profit, and consumers can buy the products and services they deserve. A large economy offers more opportunities to make better purchasing decisions. Works Cited Investopedia. (2011). Marginal benefit and marginal cost. Retrieved from http://www.investopedia.com/study-guide/cfa-exam/level-1/microeconomics/cfa5.asp Marginal costs and benefits. Goldline International, March 29, 2008. Web. March 6, 2011. .Shah, A. (2011, January 2). In trade, economics and related matters. Retrieved March 6, 2011, from http://www.globalissues.org/issue/1/trade-economy-parent-issues