Extravagant things

Extravagance is relative. What is extravagant to one person is mundane to another. If spending a small regular amount on a nice coffee stops me ordering takeaway every night, then i'm doing extravagance well.

This is one of the big differences between me and many debt organisations. I don’t have a strict ‘budget’, I have a spending plan that embraces some extravagance. Learning to live and spend in real life is vital to get out of debt. Some people call this ‘mad money’ or shopping therapy, but it does not matter as long as it is not going to cause any further debt.

To start off, it might be tiny amounts spent every week. Even a bunch of flowers can be enough to keep me feeling I belong to the human race. Your spending plan can include a wet shave or a new piece of music. As long as it's an intentional part of the plan, it's ok.

In my experience this desire can fade away and be replaced with wanting something else, something with more drama and adrenaline. Paying for something in cash means I know what i'm spending. This can feel very uncomfortable for the first few times but it soon becomes a habit.

Holidays are a huge area for getting into debt. It has to be a five star hotel with an infinity pool and a long haul flight, new clothes must be bought, and there is no point in going all that way without a good restaurant each night. The holiday might be overshadowed by the thought of bills piled on the mat when I get back, but you only live once, right? This holiday can take months if not years to pay off with huge interest. And of course, the misery of paying off the holiday will need another holiday next year to compensate.

But now I have money, I am much clearer on what I want to spend it on and where. I can afford most types of holidays, but now I'm led by what I actually enjoy, rather than what others perceive to be extravagant.