Question

Extravagance leads to poverty.
Justify the statement
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Answer 1

Extravagance or spending money without care, definitely leads to poverty. ... Resulting which the basic needs may be may not be fulfilled which may lead to poverty. Extravagance means spending more cash than one can afford or earns.

Answer 2

Extravagance is the act of recklessly spending money. If you are spending more than you are making in income, you are bound to go into debt or alternatively go bankrupt. Unless you find a balance between income and expenses, you will not have a good financial status.