Write about your approach to budgeting.

What a great question for an Economics teacher to answer! First I look at my total revenue and see if it has been maximized by making a mental Production Possibilities Frontier curve using time and hours worked as variables to determine if I am maximizing my productivity.

I then look at my costs and determine which are fixed and variable costs to see if I can lower them, but of course all of these choices have opportunity costs, which must be considered. The trade offs usually consist of more fun = less money saved using another PPF.

I then create my actual budget based on total revenue minus total cost. The budget is always a living document because life is unpredictable, but I have a good idea of how much I can spend while keeping on my long-term goals.

I like having a healthy reserve in my savings in cash though because I want to be able to take advantage of opportunities to do things I love like play in the MSBL World Series on Arizona, buy ski passes, go on ski trips, summer road trips, etc.

I try to save 10% of what I make each month in order to invest. I am loving the certificates of deposit these days, but also dabble in ETF’s, stocks, bonds, trasuries and cryptocurrencies. Berkshire Hathaway and Aflak are two of my favorite stocks to buy.

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