Finance coach and advisor Margaret Njeri explains that everyday luxury is all about allocating small, intentional portions of your budget toward the things that truly elevate your life, without sacrificing your financial future.
Margaret’s first tip for embracing this lifestyle: Define what luxury means to you. By focusing on the things that genuinely make you feel cared for, inspired, or uplifted, you can prioritise indulgences that bring true joy and meaning.
“That’s where your personal luxury lies,” she says.
The next practical step is to set aside a small budget for weekly indulgences and put money towards it. This ‘joy fund’ or ‘fun fund’, as you may prefer to call it, should be 20 per cent of your monthly income. She recommends allocating 10–15 per cent of your fun budget to indulgences.
“This creates guilt-free room for small joys without derailing other financial goals,” Margaret explains.
She recommends auditing your current spending habits to eliminate low-value expenses. Then, start small by treating yourself to one affordable luxury and incorporate it into your daily routine, not just for special occasions. Examples of this include using your best dishes daily, playing relaxing music while cooking, taking a bubble bath with candles you already own and decluttering your space to make it feel like a boutique hotel.
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Items that provide a luxurious feel for the least cost include scented candles or diffusers, fresh flowers, plush throw blankets or crisp bed sheets and high-quality notebooks.
“People are embracing quiet luxury, meaning elevated but subtle items and treat culture, that is, small, regular joys like skincare or gourmet snacks. Both show a shift toward affordable indulgence,” she says.
Margaret suggests a simple way to track your monthly spending on indulgences. Reviewing your spending every week or month helps to keep it joyful and stress-free. She cautions against impulse spending or overspending to the point of financial hardship, stating that luxury should be intentional.
“You shouldn’t justify every purchase as self-care if it affects your savings or bills, because what should be a joyful activity will lead to guilt. Luxury items should not be bought on credit,” she says.
Nevertheless, when it comes to expensive items, you can reduce costs by shopping smartly and taking advantage of loyalty programmes, discounts, second-hand finds and flash sales. You could also consider buying smaller sizes of luxury items and buying essentials in bulk.
Margaret adds that everyday luxury satisfies the brain’s craving for reward, making it easier to stick to long-term savings and investment goals. Furthermore, small pleasures boost morale, alleviate financial stress and prevent women from resorting to high-risk debt.
“Psychologically, they reinforce feelings of self-worth, reduce stress and create daily joy. This can prevent burnout and bigger, reckless splurges,” she says.