Cause and effect of overspending PDF

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No one can deny the fact that the development economy contributed to improving human life-standards better. People ready to pay extra to satisfy individual demands. This results in uncontrolled spending have happened in most people. The causes of overspending are found in advertising and lifestyle.

One of the major causes of overspending is advertising. Nowadays, there are many advertising companies that help businesses promote their productions to the public on media such as Facebook, Twitter, and Youtube every time and everywhere. They create new desires and needs by colorful videos and pictures or give special offers to attract customers. Hence, buyers can spend too much money on expensive items and goods not planned.

Overspending for lifestyle is another cause mentioned. Because lifestandard is improving, people tend to enjoy their lives by spending on eating restaurants, shopping, and travel. For example, tours and trips with friends may also make an individual spend too much money. They need to pay to engage in activities that their friends participate in together. As a consequence, such individuals can run into debt because of overspending.

Due to these causes, overspending has many negative consequences on financial problems and psychological issues.

One main effect of overspending is that it can cause financial problems. In the short term, loss of control of money management makes us from overspending on unnecessary things and running into debts. Moreover, in the long run, overspending will lead to more serious problems. For instance, young people do not save money, they will only have a little money left when they cannot afford to make a living. Thus, economic issues are important effects.

Psychological problems are the second effect of overspending. It is clear that money helps people to better life quality. In fact, with more money, we can consume good quality products, go on holidays and do numerous activities. All these things contribute to a more enjoyable life. However, in the long term, they will become shopaholics and spend without planning. Overspending just brings them have happy briefly and wasting will be formed in shopping habits. Therefore, overspending cause serious psychological effects.

In conclusion, diverse advertisements and the modern lifestyle are the reasons for the development of the number of people overspending. These often result in grave psychological problems and economic problems. People have to make the balance in individuals' spending between things needed and things not planned because of their future....