Living luxuriously requires a strong financial foundation based on budgeting, saving and investing. The 50-30-20 budget rule states that 30 per cent of your income should be allocated to wants, and this is where your dream of luxury living can be realised.
You can set financial goals specifically tied to lifestyle upgrades or luxury experiences by automating savings towards them. Margaret, a true believer in categorised spending, notes that creating a luxury fund will allow you to save monthly towards your luxurious lifestyle.
“Write down your goal and give it a realistic timeline. Then devise a strategy to help you achieve it, such as saving a certain amount from your salary or earnings from a side hustle,” she says.
To elevate your lifestyle, she advises auditing your current spending, cutting out anything that doesn’t bring you joy and increasing your income.
The need to invest to enjoy a luxurious lifestyle is clear, and you can begin by creating an emergency fund worth 3–6 months’ salary if you are self-employed, or 6–12 months’ salary if you are in a salaried position.
Margaret also advises having a retirement account, unit trusts or money market funds, and gradually expanding into real estate, stocks or business ventures.
Wealth-creation avenues
There are several wealth-building opportunities that women often overlook, which could support a luxury lifestyle. These include chamas, Saccos for acquiring assets, personal branding, real estate investment trusts, high-interest savings and money market funds, rental units and Airbnb, insurance-linked investments, business investments, dividend-paying stocks, creating an online business or digital assets (such as courses and e-books), and fostering financial partnerships with like-minded women.
Some career moves that can support a luxury lifestyle include regularly negotiating salaries, learning and perfecting new skills to attract high-income roles, exploring remote or freelance work for flexibility, expanding income streams through coaching, consulting and selling digital products, and investing in personal branding.
She insists that the financial habits that lead to freedom, indulgence or lifestyle upgrades are budgeting without shame, paying yourself first through saving, regular investing to shift from consumer to wealth creator, planning splurges and increasing financial literacy.
Buy less, but better
Focus on value-based spending by prioritising quality over quantity.
Opt for quality over quantity when it comes to your wardrobe and beauty products. You can enjoy luxury through travel deals or during the off-season. Host lavish yet intimate events at home and start DIY spa days and self-care routines,” she says.
She also mentions that women often use credit for non-essential luxuries, which inflates their lifestyle without increased investment. Other issues include hiding spending from a partner, not tracking financial progress and overdependence on a single income stream.
To break free from survival spending, Margaret reveals the biggest money myths that prevent women from living luxuriously: that talking about money is unladylike, that investing is too risky, and that saving means sacrificing enjoyment.
“These myths limit confidence. Empowerment comes from financial literacy and mindset shifts. A soft life can be empowering when backed by intentional financial planning. However, it becomes unsustainable when funded by debt or avoidance of future planning,” she says.
By Anjellah Owino
