It turns out that our parents were right when they rolled out the familiar childhood line, “money doesn’t grow on trees you know.” and unless you managed to find yourself a very generous sugar daddy, most of us eventually come to the same unfortunate conclusion. But with the rich aunty vibes we're chasing, it's time to get smart with our finances, now we don't mean tedious budgeting, living like a cheapskate or endless calculations but we do mean understanding where our money goes, knowing its working hard enough for us and still being able to enjoy a little treat.

Step One: Know Your Expenses

Before anything else, you need a clear picture of where your money is meant to go. Start by dividing your salary into four different groups. These act as your framework, not rigid rules, giving you an immediate sense of how your income is distributed across the areas that matter most. Once each category has a defined portion of your income, you can see what’s available, what feels tight, and where there may be imbalance. Everything that follows becomes easier when this foundation is in place.

The 4 groups are:

  • Fixed Costs: these should be roughly 50-60% of your take home (after tax) pay. This includes your rent/mortgage, groceries, energy bills, phone bills, debt etc
  • Savings: these should be 5-10% of your take home pay.
  • Investments: different to savings and around 5-10% of your take home pay.
  • Guilt-Free Spending: a very generous 20-35% of your take home pay. It covers things like shoe splurges, travelling, hobbies, etc. If it feels too much you can put it into the savings or investment buckets.

This gives you clear visibility over your finances and highlights where one area may be sneakily outweighing the rest.

Step Two: Create Strategic Buckets Within Your Expenses

Once you understand the percentage split across your main expense categories, the next step is to break each one down further. Breaking each category into smaller, deliberate buckets allows you to plan ahead for when money leaves your account, not just how much. You can then anticipate costs rather than being surprised by them, which in turn gives you more control over cash flow across the month and removes the sense that expenses are happening to you rather than by design.

1. Fixed Costs

  • Rent or mortgage
  • Groceries and household essentials
  • Utility bills and phone/internet
  • Loan repayments or credit card minimums

2. Savings

  • Emergency fund covering 3–6 months of living costs
  • Short-term goals like a new laptop, home repair, or a planned splurge
  • Cash set aside for irregular or seasonal expenses

3. Investments

  • Retirement accounts or pension contributions
  • Stocks, ETFs, or index funds
  • Bonds or other low-risk investment vehicles

4. Guilt Free Spending

  • Weekend getaways or travel experiences
  • Special dinners, wine, or fine dining
  • Fashion splurges or wardrobe updates
  • Hobbies like fitness classes, golf, or creative pursuits

Step Three: Start Tracking Your Finances

Once your budget is set, tracking is what keeps you on track for your plan. It helps you with payments that are sporadic throughout the month such as groceries and anything that falls under guilt free spending, it helps you see small leaks before they become problems, and builds awareness around your spending. Tracking can be as simple as a weekly check-in or a short tallyup at the end of each day, you just need to find a way that feels sustainable for you. We actually prefer to input it as soon as its spent so it's one less thing to think about.

When it comes to the method of tracking some people prefer spreadsheets, others use manual apps or dedicated budgeting tools to categorise transactions automatically. Whilst the method matters less than the habit, here are some of the top rated budgeting apps for 2026;  EveryDollar, Wallet by BudgetBakers, Lunch Money, Rocket Money, Monarch, Albert, Spendee, Quicken Simplifi. Consistent tracking gives you feedback in real time, making it easier to adjust as you go rather than fixing things after the month has already run away from you.

Making Your Budget Work for You

Once the structure is in place and you’re actively tracking your money, it lets you stop being a slave to money and understand your spending patterns. Not just in where you spend, but in how those choices affect your time, energy, attention and progression towards the life you are trying to build. This clarity allows you to make forward thinking decisions rather than reactive ones, turning budgeting into a tool for shaping your life, not just managing it.

Now we've covered the essentials of budgeting, now we can get into the steps to build the life you want.

Step Four: Spend Like an Investor, Not a Consumer

Rich life budgeting evaluates spending based on return, not price alone. Return on investment isn’t always financial, it's also time saved, stress reduced, energy protected, and opportunities unlocked. Paying for something that consistently improves your daily life isn’t over indulgent, it’s investing in your life. Cheap choices that drain your energy or result in an upgrade later aren't beneficial even in the short term.

  • Time saved – a cleaning or laundry service, grocery delivery, meal delivery service, appliances that shorten daily tasks.
  • Stress reduced – anything that simplifies your life, from the aforementioned reliable cleaners and meal delivery to direct flights and good quality appliances rather than cheap ones that break are worth the upfront cost.
  • Energy protected – comfortable quality shoes, breathable natural fibre bedding, or fitness options that easily fit into your schedule. These are small investments that keep you functioning at your best.
  • Opportunities unlocked – memberships or clubs that expand your circle, courses, coaching, or tools that improve earning potential, living closer to work rather than further away for savings, these give you options that allows you to say yes when it matters.
  • Decision fatigue removed - a 'uniform' of items that all go well together for work clothes, set menus or meal rotations, automated savings and investments, recurring subscriptions for essentials you always repurchase. These default choices reduce daily negotiation with yourself and free up your mind for things that matter.

Step Five: Budget for the Woman You’re Becoming

Your current income is not your future income. Budgeting only for today's income doesn't help you work towards your future growth. But budgeting for your future self is less about upgrading your lifestyle today and more about learning to manage more money well. The goal isn’t to outspend your reality, but to prepare for the one you’re actively building. Raises, bonuses, and increased income often arrive before better habits do, which is how lifestyle creep takes hold.

Practising with slightly larger numbers matters more than people realise. Managing a higher rent, a better car, or increased travel costs in theory, before they arrive in practice, builds confidence and discipline for when those expenses do arrive.

Becoming comfortable with bigger figures, responsibly, is a skill. Start by treating any increase in income as something to be managed deliberately, not immediately spent. Strengthening your financial base now gives future income somewhere sensible to land.

A solid priority is building an emergency fund. Aim for three to six months of essential living expenses, kept in a separate and accessible savings account. This fund is what prevents short-term setbacks from becoming long-term problems and allows you to make decisions without pressure when something unexpected happens.

Address any high-interest debt. Credit cards and similar balances undermine progress no matter how organised the rest of your finances appear. Whether you prefer the avalanche method, focusing on the highest interest first, or the snowball method, clearing smaller balances to build momentum, the important part is having a clear plan and sticking to it. Reducing this kind of debt creates immediate breathing room and protects future income from being consumed by interest.

Step Six: Understand Your 'Luxury Yes' & 'Luxury No'

A rich life isn’t built by spending big everywhere, it’s built by spending in the places that genuinely matter to you. Start by identifying the areas where you are comfortable spending more, not for appearance, but for long-term value and towards your own goals. At the same time, decide where spending can remain simple. Easy nos remove pressure and reduce decision fatigue.

You might say yes to:

  • skincare and health
  • travel and experiences
  • education and skill-building

And no to:

  • impulse fashion
  • constant upgrades
  • spending for social signalling

When your yeses and nos are clear, money stops leaking into areas that don’t move your life forward. Your lifestyle feels luxury where it counts and calm everywhere else. That balance is what allows you to feel rich without overspending or living paycheck to paycheck.

Practical Ideas to Apply Today

  • Simplify Your Wardrobe: Invest in a high-quality staples rather than many low-cost items. Pieces that last, fit well, and suit your lifestyle save time and reduce decision fatigue. Your mornings will run smoother, and your outfits will always feel put together.
  • Upgrade Everyday Tools: Upgrading items that you use constantly, coffee machines, knives, cookware, pay back in daily satisfaction and efficiency. Avoid unnecessary upgrades to things that already work. This is where small investments pay off consistently.
  • Home Efficiency: Automate wherever possible, bills, recurring deliveries, smart lights, thermostats. Convenience here creates mental space elsewhere.
  • Simplify Food: Prioritise ingredients, appliances, or services that make eating aligned with your goals effortless, without requiring constant effort or creativity.
  • Self-Care as Investment: Regular skincare, health treatments, and movement routines aren’t silly indulgences, they protect your energy, confidence, and long-term wellbeing. Consistency here is far more valuable than sporadic splurges elsewhere.

The Difference Between Looking Rich and Feeling Secure

Looking rich is easy, feeling secure takes work. Wealth isn’t about only labels, logos, or appearances, it’s understanding, preparation and choice. A bougie home, a high quality wardrobe, or a stunning vacation is only rich if it’s supported by real financial security. Feeling secure comes from systems, habits, and intentional decisions, not from spending to signal status. Security allows for better taste and managing your money more efficiently. When you’re not stressed about money, you spend more selectively, don't waste it and enjoy it with far more pleasure.

This article is for editorial and lifestyle purposes only. It is not financial advice, and The Lux Journals is not affiliated with, endorsed by, or responsible for any third-party services, products, or brands mentioned.

The link has been copied!