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"Many people spend money extravagantly on frivolous products that they do not really need such as discount fashion items from well-known brands"

I would like to ask whether it is grammatically correct or natural to put the adverb "extravagantly" between the verb and the preposition like in the sentence given.

It sounds quite natural to me, but I still feel a bit weird, perhaps I have never seen this before. So please let me know your opinion. Thanks!

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Yes, this is quite grammatical and such constructions are often used by native and fluent speakers. If you like, you can think of "spend money extravagantly" as a new phrasal verb.

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