Beks, at Blogging Away Debt has decided NOT to apply her $3000 tax refund to her debts. Instead, she will use it to accompany her family on a European vacation, possibly the last big trip the family will take together.
Note that she is NOT planning to accumulate more debt or to use her credit cards for the trip. The point is that her tax refund could be applied to her indebtedness, but won't be.
Single Guy would get this. He recently bought a new computer that he didn't need and couldn't wait to purchase. His situation is a tad more complicated in that he put the purchase on a new credit card with no interest, intending to pay in full by the time interest would kick in.
Beks has the money in hand. Single Guy--not so much.
As one might expect, Mr.Tough Money Love has more than a few harsh words for Single Guy. I don't know what he'd think about Beks, but since he reads and responds to this blog, I'm guessing we'll soon know.
My question is, is there a problem saving up for, or using available cash for a financial spree at the same time one is reducing debt?
Personally, I think not, at least not if it doesn't happen all the time. Things do come up--friends or family have weddings; once-in-a-lifetime trips appear on the horizon (witness Grace's trip to Japan in 2008); the plasma TV bites the dust during the Olympic hockey finals; whatever.
If one can come up with the funds WITHOUT incurring more debt, then I say, Go for it! It may lack Dave Ramsey's "gazelle intensity" but it is NOT the death knell for eventual financial success.