Here's the scenario...If you were remodelling your bathroom, and found tile you loved but it cost an extra $1.40 than you budgeted/expected. Meaning you had set your budget for $5 but found stuff you loved for $6.40 instead. This extra would cost you $700 extra to finish your project. Now you had come in and extra $200 on other items for your renovation. So it would just cost $500 extra.
Now would you pay the extra $500 and buy the nicer tile? Or would you buy tile you didn't love just because it fit in the budget?
Extra information. The couple is very financially wise. In fact they try to emulate the millionaire next door theory. So they coupon shop, and sometimes go overboard with being frugal. They save the maximum in your retirement accounts, have no debt except the mortgage. In fact their mortgage is due to paid off in 6 more years at 43. You pay extra money to the mortgage every month. They can afford the $500/month because they pay $1800/month extra to the mortgage, in fact they barely break a sweat.
But what should they do? Take an extra $500 and buy the tile they like? Or not buy the tile and stick to their original budget. Also they have extra cash in other sinking funds, so they can still make their $1800/month extra mortgage payment and instead slowly pay back their extra pot of money.
What should they do?