How to Live Rich for Less

Live a comfortable lifestyle while saving your pennies.

Everyone dreams of striking it rich and living a life of luxury. For many people, personal wealth takes plenty of patience and dedication. While you build your savings and create a secure financial future, it's still possible to live a comfortable lifestyle with a few extra indulgences and luxuries. Living rich for less means learning how to stretch your savings and making smart but fun financial choices.

Instructions

1. Calculate your budget. Once you know how much you need for essentials, you also know how much to spend on splurges. Set aside a certain amount of money each month or week that can only be used for indulgences such as movies, nice restaurants or saving up for a vacation. It may be $20 or $200, depending on your budget.

2. 

   Never pay full price for designer clothes or other items.

   Shop sales. When you see a designer dress or expensive pair of jeans, keep an eye on the product and wait for it to hit the sale racks. Search online and offline auctions, sample sales, outlet malls and bargain sites. There are also services that will rent designer accessories for special events or one-time occasions, giving you a luxurious look without the price tag.

3. Invest in luxury items. Instead of buying low quality items that will need replacing, make smart investments by purchasing well made items that will last for years. Choose your investments wisely and stick to a plan such as one luxury purchase every six months. When buying items such as winter coats, furniture, tableware and other household essentials, opt for timeless styles instead of trends.

4. 

   Saving every penny is the key to affording a good life for less.

   Spend your extra pennies. Small savings can add up to create extra spending money. Whenever you make a cash purchase, set aside the leftover change. After a year or two, you'll have enough extra money to contribute to a vacation, a down payment on a car or another luxury.

5. Stay home more often. Salons and upscale restaurants are part of a luxurious lifestyle, but repeat visits can be hard on your wallet. Instead of getting expensive manicures, invest in the materials for a salon quality experience you can achieve yourself. Instead of eating out, buy a French or gourmet cookbook and hone your skills as a chef.

Tips & Warnings

• Learn how to enhance and appreciate your existing wardrobe. Looking elegant isn't about the cost of clothes, but about having a polished personal style and knowing how to dress for your body. Look for inexpensive accessories that are timeless and attractive enough to enhance your outfits.

• Be generous. Live a rich lifestyle by showing generosity and love to your friends and family. Instead of buying large, expensive gifts, select small, personal and heartfelt gifts that let the recipient know that you care.

• Barter. For instance, if you have a friend, family member or coworker who is skilled at interior decorating, ask for a consultation and makeover for your living room. In return, offer one of your skills, such as helping with taxes or pet-sitting.

References

• Shine: 10 Ways to Live Rich on Less Money; Glamour Magazine; September 2009
• Wallet Pop: Ways to Live Like the Rich; Kelli B. Grant
• Financial Edge: How To Live Rich For A Lot Less; Stephen D. Simpson, CFA; March 2011

Resources

• Bag Borrow or Steal
• Wear Today Gone Tomorrow