Due to drastic change in the economy the purchasing power of people has increased, leading to over purchase and buying of unnecessary items. I suggest that we should spend the cash as per our income and save funds if any adversity arises.
To begin with, we will consider the positive effects. As per the census-2018, the per capita income of urban areas is increased by 25%, which means people are earning enough for a living. The positive effect is that, it gives them access to luxury and higher standard of living. For instance, they can purchase luxury items, invest in real estate and buy expensive automobiles which was an urban dream earlier. However, tendency to purchase more comes with a great deal of negative effects. People spend more than their earning that leaves them with enormous debts and no savings.
Another noteworthy reason to be mentioned is that, children are becoming spoiled brats with the luxury been provided to them. Parents provide provide their children with all the unnecessary items which ever they ask for. For example, they spend money on all the latest gadgets and gaming equipments which are not a necessity. Parents may take credit card debts to provide these equipments to their children for their happiness. This may lead to no savings for their future.
In conclusion, Increase in purchasing power is a negative development. But, we can overcome the negative aspect of buying unnecessary item if people spend money wisely by planning their expenses and income. Also, saving money for a rainy day will reduce their spending pattern.
Due to drastic
change
in the economy the purchasing power of
people
has increased, leading to over
purchase
and buying of unnecessary
items
. I suggest that we should
spend
the cash as per our income and save funds if any adversity arises.
To
begin
with, we will consider the
positive
effects. As per the census-2018, the per capita income of urban areas
is increased
by 25%, which means
people
are earning
enough
for a living. The
positive
effect is that, it gives them access to luxury and higher standard of living.
For instance
, they can
purchase
luxury
items
, invest in real estate and
buy
expensive automobiles which was an urban dream earlier.
However
, tendency to
purchase
more
comes
with a great deal of
negative
effects.
People
spend
more than their earning that
leaves
them with enormous debts and no savings.
Another noteworthy reason to
be mentioned
is that, children are becoming spoiled brats with the luxury
been provided
to them. Parents
provide provide
their children with all the unnecessary
items
which ever they
ask for
.
For example
, they
spend
money on all the latest gadgets and gaming equipments which are not a necessity. Parents may take credit card debts to provide these equipments to their children for their happiness. This may lead to no savings for their future.
In conclusion
, Increase in purchasing power is a
negative
development.
But
, we can overcome the
negative
aspect of buying unnecessary
item
if
people
spend
money
wisely
by planning their expenses and income.
Also
, saving money for a rainy day will
reduce
their spending pattern.