Cause and Effect Essay

Good Essays
Is Money the Key to Life? Money is a necessary commodity for survival. Once acquired it should be used wisely. In fact, keeping a personal budget should be a priority. Most people are not aware of the effects they will face during their life, when they do not keep a personal budget. Most people are generally thrown into the real world when it comes to spending money. Some people are not concerned with the amounts they spend. The effects of not keeping a personal budget can be, but are not limited to not having any saving for unexpected expenses, going into debt or bankruptcy, causing intensified stress on a household, and the lack of responsibility which causes over spending. The biggest effect that can come from not keeping a personal budget is not having a savings fund for unexpected expenses. Everyone should have a savings fund. No one knows when an unexpected emergency will occur, such as a broken down car or hospital visit. This would be an ideal time when having a savings fund would be a great solution. According to Min Punyerr, “Emergency is a serious event that will need immediate action… any emergency that happens with no money in pocket or savings will be devastating.” (Punyerr). Punyerr continues on to explain an example of an emergency that happened to herself. Her car was repossessed, and her home was foreclosed. This forced Punyerr to live in a van by a river because she did not have a personal budget. Not keeping a personal budget will make it very hard for an individual to try and save money. This is clear evidence that not keeping a personal budget will result in a negative outcome, when an emergency or unexpected expenses arise. Debt is a nasty word that no one should ever have to experience. This one word can ruin an individual’s whole life. Bankruptcy can occur when an individual spends more money than he has to spend. This will lead to the person going into debt because he will need to take out a loan to pay for his expenses. This could

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