The topic of emergency savings for self-employed individuals is increasingly relevant in today’s gig economy and has appeared in various forms in recent IELTS Writing Task 2 questions. Based on trends in past exams and the growing importance of financial security for freelancers and entrepreneurs, we can expect this theme to continue appearing in future tests. Let’s examine a sample question that reflects this topic:
Some people believe that self-employed individuals should prioritize building emergency savings, while others argue that investing in business growth is more important. Discuss both views and give your own opinion.
Let’s analyze this question and provide sample essays for different band scores, along with detailed explanations of their strengths and weaknesses.
Question Analysis
This question falls under the “discuss both views and give your opinion” category. It requires candidates to:
- Explain the importance of emergency savings for self-employed individuals
- Discuss the significance of investing in business growth
- Present their own opinion on which approach is more beneficial
To score well, candidates must address all parts of the question, provide relevant examples, and structure their essay logically.
Sample Essay for Band 8-9
Here’s a high-scoring sample essay:
Emergency savings and business growth investments are both crucial aspects of financial management for self-employed individuals. While some argue that building a safety net should take precedence, others contend that focusing on expanding one’s business is more beneficial. In my opinion, a balanced approach that prioritizes emergency savings initially, followed by strategic investments in growth, is the most prudent course of action.
Those who advocate for emergency savings emphasize the inherent instability of self-employment. Freelancers and entrepreneurs often face irregular income streams and unexpected expenses, making a financial buffer essential. For instance, a freelance graphic designer might experience a sudden drop in client projects due to economic downturns, necessitating a reserve fund to cover living expenses. Moreover, self-employed individuals lack the safety net of employer-provided benefits, such as health insurance or paid sick leave, further underscoring the importance of personal savings.
On the other hand, proponents of prioritizing business growth argue that reinvesting profits can lead to long-term financial stability and success. By allocating resources to marketing, equipment, or skill development, self-employed individuals can potentially increase their earning capacity and market share. A web developer, for example, might invest in advanced coding courses or upgraded software, enabling them to take on higher-paying projects and attract more clients. This approach can result in a more robust and profitable business over time.
In my view, the ideal strategy involves a two-phase approach. Initially, self-employed individuals should focus on building a substantial emergency fund, typically covering 3-6 months of living expenses. This provides a crucial safety net against unforeseen circumstances and reduces financial stress. Once this foundation is established, they can then shift their focus towards strategic investments in business growth, allocating a portion of their earnings to expansion while maintaining their emergency reserves.
This balanced approach offers the best of both worlds: financial security in the short term and opportunities for increased prosperity in the long term. By prioritizing emergency savings initially, self-employed individuals create a stable foundation from which they can then pursue growth opportunities with greater confidence and reduced risk.
In conclusion, while both emergency savings and business growth investments are important for self-employed individuals, I believe that establishing a solid financial safety net should be the first priority. Once this is achieved, focus can shift to strategic growth investments, allowing for a more secure and prosperous self-employment journey.
(Word count: 416)
Band 8-9 Essay Analysis
This essay demonstrates excellent writing skills and meets the criteria for a high band score:
Task Achievement: The essay fully addresses all parts of the question, discussing both views and clearly stating the writer’s opinion.
Coherence and Cohesion: The essay is well-structured with clear paragraphs and effective use of cohesive devices. Ideas flow logically, and each paragraph has a clear central topic.
Lexical Resource: The essay uses a wide range of vocabulary accurately and appropriately. Complex phrases like “inherent instability,” “financial buffer,” and “strategic investments” demonstrate sophisticated language use.
Grammatical Range and Accuracy: The essay showcases a variety of complex sentence structures with minimal errors. Conditional sentences, relative clauses, and compound-complex sentences are used effectively.
Development and Support: Each main point is well-developed with relevant examples and explanations, such as the freelance graphic designer and web developer scenarios.
Sample Essay for Band 6-7
Here’s a sample essay that would likely score in the Band 6-7 range:
In today’s world, many people choose to be self-employed. Some think they should save money for emergencies, while others believe investing in their business is more important. I will discuss both views and give my opinion.
Those who support emergency savings say it’s important because self-employed work can be unpredictable. For example, a freelance writer might not get many jobs some months, so they need money saved to pay bills. Also, if they get sick, they don’t have paid sick leave like regular employees. Having savings can help them feel more secure.
On the other hand, people who think investing in business is more important say it can help earn more money in the future. If a self-employed person spends money on better equipment or advertising, they might get more customers and make more money. This could lead to a more successful business over time.
In my opinion, both saving for emergencies and investing in business are important, but I think saving should come first. It’s good to have some money set aside before trying to grow the business. Once there are some savings, then it’s okay to start investing more in the business.
Self-employed individual planning finances
To conclude, while both saving and investing are important for self-employed people, I believe saving for emergencies should be the first priority. After that, they can focus on growing their business.
(Word count: 272)
Band 6-7 Essay Analysis
This essay demonstrates good writing skills but has some limitations that prevent it from achieving a higher band score:
Task Achievement: The essay addresses all parts of the question, but the discussion of each view and the writer’s opinion could be more developed.
Coherence and Cohesion: The essay has a clear structure with introduction, body paragraphs, and conclusion. However, the use of cohesive devices is somewhat limited and repetitive (e.g., overuse of “also” and “for example”).
Lexical Resource: The vocabulary is generally appropriate but lacks the sophistication and range of a higher band score. Some attempts at more advanced vocabulary are present, such as “unpredictable” and “successful.”
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences with generally good accuracy. However, there’s less variety in sentence structures compared to the Band 8-9 essay.
Development and Support: The main points are supported with examples, but they could be more detailed and varied. The freelance writer example is relevant but could be expanded upon.
Key Vocabulary to Remember
- Self-employed (adjective) /ˌself.ɪmˈplɔɪd/ – working for oneself rather than for an employer
- Emergency savings (noun phrase) /ɪˈmɜː.dʒən.si ˈseɪ.vɪŋz/ – money set aside for unexpected expenses or financial difficulties
- Prioritize (verb) /praɪˈɒr.ə.taɪz/ – to decide which of a group of things are the most important so that you can deal with them first
- Financial buffer (noun phrase) /faɪˈnæn.ʃəl ˈbʌf.ər/ – a reserve of money to protect against financial hardship
- Inherent instability (noun phrase) /ɪnˈher.ənt ˌɪn.stəˈbɪl.ə.ti/ – built-in or natural unpredictability or unreliability
- Strategic investments (noun phrase) /strəˈtiː.dʒɪk ɪnˈvest.mənts/ – carefully planned allocation of resources to achieve long-term goals
- Financial security (noun phrase) /faɪˈnæn.ʃəl sɪˈkjʊə.rə.ti/ – the state of having stable and sufficient financial resources
- Market share (noun phrase) /ˈmɑː.kɪt ʃeər/ – the portion of a market controlled by a particular company or product
- Reinvest (verb) /ˌriː.ɪnˈvest/ – to put profit back into a business to promote growth
- Prudent (adjective) /ˈpruː.dənt/ – careful and avoiding risks
Understanding and using these terms correctly can significantly enhance the quality of your IELTS Writing Task 2 essay on this topic. Remember to practice using them in context to become more comfortable with their usage.
How to maximize savings through interest can be an important strategy for self-employed individuals looking to build their emergency fund more effectively. By choosing high-yield savings accounts or other interest-bearing options, freelancers and entrepreneurs can make their money work harder for them while maintaining the liquidity needed for emergencies.
Conclusion
The topic of emergency savings for self-employed individuals is likely to remain relevant in future IELTS exams. To prepare effectively, practice writing essays on related themes such as:
- The challenges of financial planning for freelancers
- The role of government support for self-employed workers
- Balancing personal and business finances in entrepreneurship
Remember to structure your essays clearly, use a range of vocabulary and grammatical structures, and provide relevant examples to support your arguments. Consider posting your practice essays in the comments section for feedback and discussion with other learners. This active engagement can significantly improve your IELTS Writing Task 2 skills and prepare you for success in the exam.