FINANCIAL LITERACY - EXTRAVAGANCE

Think of your budget as a map. Extravagance is going outside the boundaries of your budget. This will vary from person to person, family to family. The first step to staying within your means is to make a budget. Then stick to it. 

For some, going to the movies will be extravagant. For others, a trip to Europe will be an extravagance. There are ways to budget for things, but ignorance, intentional or not, will take you outside the limits. Remember that every penny counts, and the little things add up. 

Are you going into debt for the necessities because you have spent too much on the extravagances?  It helps to know the difference between want and need, and to plan for the "wants" without going into debt for the "needs."

In other words, set limits. Boundaries are a good thing. 

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