7 Budgeting Tricks To Live a Luxurious Life, Even on a Modest Income, From a CFP
Written by
Laura Bogart
Edited by
Kristen Mae
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You long for a life of luxury. Scrolling through social media, you see photos of your friends’ elite vacations and strangers’ palatial homes, with ads for sumptuous goods interspersed. It feels like staring into a bakery window while you’re hungry. You earn a modest income — there’s no way you can afford a luxurious life. Or so you think.
If you’re willing to reframe your views on what constitutes luxury and build a smart savings strategy, you could live the soft life without hitting the hard reality of debt. According to Lissa Lumutenga, CFP, AFC, a personal finance expert and content creator, you can live luxuriously even on a budget. She shared her tips with GOBankingRates.
Reframe Your Idea of Budgeting as Restriction
When people think of building a budget as cutting their finances close to the bone — and cutting out pleasure altogether — they’re less likely to stick to a plan. Lumutenga encourages her clients to reframe what budgeting means to them.
Instead of assuming they’ll need to create a fixed forecast for the month, she suggests starting with a 90-day cash flow audit. During the audit, they look back over the past three months to see where their money actually went.
“When you do this, current and future budgets are based on foundational truths rather than guesses or estimates. From there, we shift from feeling restricted to being in control of spending decisions,” she said. “When clients see what they’ve actually been spending on in the recent past, they’re more inclined to make decisions they’ll stick to moving forward.”
For example, someone whose audit showed they spent more on fast food than they realized may become more mindful of takeout consumption and make more intentional choices going forward.
Embrace ‘Quick Wins’ When It Comes to Budgeting
To get clients excited about refining their spending habits, Lumutenga encourages them to embrace a few “quick wins” — easy yet effective changes when reframing their budget.
Rename it: “If ‘budget’ feels negative, call it a spending plan or monthly cash flow,” she said. “Same concepts, but better energy.”
Make it about intention, not restriction: “Mindful money is a trait of the wealthy,” she added. “If a client understands that it’s not deprivation but about eliminating waste and focusing on value, they’re more likely to stick to their budget.”
Use simple rules: “Rather than changing everything at once with a budget overhaul, some clients feel less restricted when they focus on fixing one ‘slow leak’ at a time,” she said. “For example, cancel a subscription and take the month to see whether you actually miss it.”
Rethink What Luxury Means to You
Many people are taught to think of luxury as an elevated, impossible-to-achieve lifestyle — thanks to decades of media and pop culture. Lumutenga says it’s time to release those outdated views.
“If you dig deeper, luxury is really about knowing what you value and spending your money in alignment with that,” she said. “For many people, a luxurious life simply means having enough money to buy comfort, ease, joy, options and a sense of financial security.”
Instead of thinking luxury means owning a car that would make James Bond blush, consider small quality-of-life upgrades such as better lighting, regular sleep, quality coffee at home or occasional time-savers like a monthly housecleaning.
“These can be low-cost but high luxury,” Lumutenga said.
Pay Yourself First
According to Lumutenga, the financial concept of “paying yourself first” can help you build the kind of financial security that makes life feel luxurious.
“How it works: You dedicate money to ‘future you’ every time new income arrives — before anything else, including bills,” she said. “This means automatically routing a set amount to savings or investments. It noticeably improves daily quality of life because it delivers peace of mind.”
This approach offers another kind of luxury — the freedom of knowing you’re taking care of your future. As Lumutenga puts it, “This method creates real financial security even while you’re still building.”
Build Flexible Spending Into Your Budget
When creating your budget or spending plan, Lumutenga suggests adding a “flexible” category for unplanned or spontaneous fun. Once you’ve saved about 10%-15% of your monthly expenses in this bucket, you can enjoy guilt-free spending.
“Rather than dipping into your emergency fund, you’ll have a dedicated ‘fun’ or ‘flexible’ bucket of cash that can be used — then replenished — for small joys on a regular basis, with zero guilt,” she said.
Make Spending Shifts To Align With a New Luxury Mindset
Even small gestures can create a strong sense of comfort or luxury when done intentionally, Lumutenga said.
She gives the example of cooking more meals at home instead of eating out but serving them as if you were in a restaurant.
“For example, course out the dishes or buy a few elevated ingredients for the week,” she said. “Even if those cost a bit more, you’ll still spend less than eating out — and you won’t feel like you’re sacrificing quality. Plus, you’ll still get that fine dining experience.”
Learn To Delay Gratification
Encouraging people to delay gratification can be tough. Lumutenga recommends three mindset shifts to help avoid unnecessary spending.
Reframing: Rather than saying, “No, I can’t afford it,” she encourages clients to think, “No, I’m funding my bigger goal of _____.”
Delayed gratification: “Incorporate rules and systems like wish lists or the ‘48-hour rule,’ which requires you to wait 48 hours before making a purchase,” she said. “This builds the habit of more intentional spending.”
Replacement: “Rather than stopping, think about swapping,” she said. “This way, you don’t feel deprived or restricted — you’re just making a shift. For example, before buying new clothes, find something in your closet you haven’t worn in a year and restyle it. Or instead of going out with friends, plan a cheaper night in. You’ll still have fun without hurting your budget.”
Bottom Line
With a few mindset shifts, you can live luxuriously even on a modest income. Luxury is less about how much you spend and more about how intentionally you spend it. Who knows? You might even find you prefer those home-cooked meals and cozy nights in to pricier options.
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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