IELTS Writing Task 2: Personal Finance

Many people prefer to spend money and not save it.

• What are the reasons?
• Is this a positive or negative development?

Answer:

In today’s consumerism society, managing individuals monthly income is sometimes being neglected by many. Some people overlook the importance of having a culture of saving, let alone compounding. This essay will examine the causes why the present human behaviour is into spending and also discuss whether it is a negative or positive development.

Many people are now becoming after of material pleasures,  they are buying things excessive to their needs. Most of them tend to spend their income the minute they receive the money without considering the consequences that lies ahead. One of the reasons for this is that, citizens especially in developed countries are pressured to keep up with peers. For example, if a neighbor or a friend buy an expensive car then someone are pressured to purchase the same or even higher. Similarly,  a number of people want luxury and comfortable lifestyle. They are willing to spend money on things that can satisfy their materialistic needs.

In the contrary, the increased in spending should not only focus on the negative side of the story. There are also valid reasons for the increased in spending that lead people to have little or no savings at all.  An example for this is eating out with family or friends together. When someone need to unwind or a break from work, savoring food together with friends or loved ones can release positive emotions. However, frequent dining out can caused excessive debt that can result to a long-term financial problems. Therefore, excessive expending habits is a negative development. 

In conclusion, keeping up with peers can entice someone to overspend and even get into debt. It is fine to spend occasionally on things that bring comfort and happiness but first someone have to set aside savings for the future. For me, overspending on wants provide short-term gratification with long-term prices to pay.

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