Living in luxury doesn’t necessarily mean having a big house and flying on a private jet.
Instead, it can mean having solid cash that you don’t need to stress about money – and splurging here and there without depleting your nest egg. Some luxuries aren’t as expensive as you might think, and can be worked into your budget even if that budget is tight. Here’s how to live comfortably on a fixed income.
Find affordable luxury that feels expensive
Although many indulgences come with high price tags, there are ways to treat yourself without breaking the bank. For example, if an expensive vacation is out of your budget this year, opt for a local wine tour. And if you’re going on vacation, upgrade your trip with credit card rewards.
Some resorts and spas offer discounts for bookings during off hours. For people who enjoy luxuries like high-quality skincare products and linens, you can find deals at retailers like Costco and drugstores on similar quality items.
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Prioritize quality over quantity
Invest in durable, affordable items like basic clothing and electronics so you don’t have to spend money over and over again – and avoid taking on credit card debt or draining your savings. Take premium sheets for example: If you buy high-quality linens once, they can last for years even if you use them every day.
Prioritizing those quality purchases can help you live a luxurious life without spending on new purchases in the short term.
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Use loyalty programs and points
Some companies have loyalty programs that allow you to accumulate points and special deals, making it easier to get more out of your fixed income. Although these programs vary depending on where you shop, many retailers now offer special deals to loyal customers to keep them coming back.
Using a credit card that collects points when you swipe and lets you exchange those points for rewards is another way to save big on luxury goods and services. Many allow you to use points for flights, hotel reservations and other travel expenses, as well as gift cards and merchandise.
Compare your card’s current rewards program with others to make sure you’re getting the most benefits possible.
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Change your concept of luxury
Reframing the way you view luxury can help you get more out of your fixed income. Luxury isn’t just about spending money – it’s about spending money intentionally.
Consider making small purchases that bring you joy, even if it’s a latte from your favorite coffee shop or eating out once a week. Spending money on experiences with friends and family may feel more luxurious to you than an expensive watch or designer bag.
