Depending on a person’s needs and wants, you can grasp the economic factors that influence their behavior. Everyone has their perception of the products and resources that are important in life. Yet, there are economic factors that you should put into consideration before purchasing a product. There are products a person needs versus a product they want. Economic factors a majority of people should put into account are income, desires and credit market.
Managing your income is one factor because without any source of income you will not be able to buy anything. Even if you are rich, or have no financial responsibilities, budgeting your income is vital. The common responsibilities a person should keep in mind are paying bills. Such as transportation to and from work, rent or mortgage, food and the miscellaneous situations that may come up. Due to the way society is set up, people that suffer with low-income, are more inclined to use a vast amount of their money on basic needs. People who have the luxury of generating a high-income are able to distribute their money into more than just their needs. For example, taking a vacation every summer, buying another home, or adding more cars to their collection.
Although, everyone doesn’t have the privilege of having a high-income, people still have desires. We live in a society that is always creating new and innovative products for consumers. With the growth of new products and changes to your life, you will be more inclined to look into purchasing the latest products on the market. A prime example of people wanting the latest product, is the Apple iPhone. Apple has come out with new products every year, which makes people spend any extra money on Apple products just to fulfill the desired urge of purchasing something new.
An economic factor that can be useful to people with a low or high-income is the credit market. Having a credit can be very beneficial, it allows you to buy a product that you may not have the funds for at the moment. However, you will have to payoff or pay the minimum payment before the next billing cycle. People use their credit card for a plethora of reasons. Such as, purchasing large items like cars, houses, or groceries. Signing up for a credit card may sound like a great idea, but the overuse of a credit card can lead you into debt. Depending on what credit card service you are using there are different rates of interest, some being higher than others.
No matter what your living situation is you should always be aware of the economic factors. These economic factors of income, desire and credit market are three out of a bunch, accounted for people’s behavior. If you want to gain more insight on other economic factors you can check out this link here.