Retire Early: How to live luxuriously on a budget

Hello, Gorgeous! 

A stress-free soft life seems difficult to live in survival mode. 

I made a guide that I am currently experiencing and have experimented with throughout the years. 

We have to do what we have to do to reach certain milestones, and one goal of mine is to put as much as I can into my business whilst living simply for a short period of time. 

Remember this moment is temporary. It is going to take a few months and time is your friend, so I am going to show you how to enjoy the journey without pressure.

Disclaimer: This is decades of pain and toil condensed into one post for you to make certain you never stress again. I want you to live the ultimate glamorous life, so you never have to worry about money or feel you are missing out.

There will be small sacrifices on your way up but the key is to remain looking forward rather than sideways at what others are doing. 

Preface: I am NOT frugal. I choose to valet my car, get the deluxe car wash where every ounce of dust is vacuumed, and request the premium facial. I simply do not want to be tied to certain material things, so I can have selectively luxurious activities. 

Realise your true income. 

Take the time to do this. If you take more time to look at what to spend on versus what you can keep for yourself–you’re thinking backwards. 

First, make a point to break down your expenses and income monthly.

Whether you work a 9 to 5 or as a freelancer–this applies to you. Find the months you earn the highest and lowest. Realise the average of your actual income. 

You are usually somewhere around the middle of what you naturally earn with the median output and minimum income. 

Note: If you have a windfall, put it away in savings or apply it to a big bill. This is not part of your average income. 

Second, add all your bills up together monthly. 

This includes utilities, groceries, recreation, insurance, retirement, subscriptions, and so on with taxes. These are your living expenses or what I will simply refer to as bills.

Third, divide your bills by 30.

You will learn how much your bills actually cost day to day on average. This will show you how much you need to make on a daily basis.

Later in this post, you will find a way to minimise bills so keep reading. 

Fourth, divide your earnings by 30. 

This is what you truly are taking home at the end of the day. In California, if you make $20 per hour, you are typically taking home $12 an hour after taxes. That is not including your daily bills you have to take away from this. 

I identified that my income at $70 an hour is actually $40 per hour that I keep for myself. That means if something costs $40, it is worth an hour of work. (My time is money right now, and my business plan is to scale this so this will change within 6 months.) Keeping this in mind helps me stay within my budget. 

Next, subtract your daily earnings from your daily bills.

If you see your bills are bigger than your income, it is time to either make your bills smaller or make more money. Do not panic. Scroll on and find a sidegig, odd jobs, and projects you might be passionate about. 

Then, I am going to have you break it down even smaller into weekly. 

This way it is easier to digest and you have more sense of what you can spend on a day to day basis.

Breaking the precise numbers down makes it more accessible versus large daunting numbers you feel are further away.

If you see your rent as $2490 monthly, once you divide it by weekly, it feels less overwhelming. My $2490 monthly rent turns to $622.5. 

Reverse engineering your goals always takes a load off your shoulders when you break them down small enough.

Make your (high yield) savings automatic. 

If you have no idea how to invest – in any type or matter of investment to grow your money – that is okay. 

For now, you are going to make sure you have a cushion to land on in case your car breaks down or something medical happens to you (God forbid).

Put $10 away monthly with automatic payments from your bank account into a savings account with your bank or even better – a high yield savings account. It feels like nothing.

You can work your way up to $10 a day and you will feel proud at the end of the month when you see $300 in your high yield savings account. It makes you feel accomplished and changes the way you think about how easy discipline is.

I use SoFi (not sponsored). It is simple and has 3.3%-4% APY (Annual percentage yield) which is 10 times more savings than a normal bank account. 

Time is your friend with this one.

Cut down subscriptions and pay them annually. 

This is annoying but needs to be done.

Think of it like this: monthly subscriptions cost you more yearly. When you choose the annual subscription, you are rewarded with 2 months free for most subscriptions. 

Remove apps you do not need, meal plan services, beauty subscriptions, and memberships you do not use or necessarily die without. 

Sometimes you do not need more tools that come in the form of subscriptions when you really need to be capable and use your time. Focus on what you can do versus outsourcing to cut down on bills.

Your money is your time right now if you work hourly or on a salary, so use it wisely.

When cutting down bills and paying them annual, you are not only removing expenses but also (expensive) stress when you see your checking account drained each month by a bill coming out. 

Put a name to every cent. 

When you have a goal–whether it be rent, savings for a trip, or education–you have purpose. It creates blinders for discipline that make it easier to save future you from a potential fiasco. 

Every cent you earn goes towards a particular goal you had in mind before you think about spending it. Keep your goals clear by reminding yourself that this $1 is not called cash. It is called rent. Or groceries. Or very much needed wool trousers for Winter.

Future you will thank you and be relieved that she was smart in the past so she can keep making smart decisions in her present. 

Create a cushion for each new expense. 

Once, I was saving for a goal that I worked everyday for a month. I took all the extra hours I could get working two freelance positions on top of my 9 to 5. 

There was a precise amount that looked something like $11,795.13. It was insane. I reached the goal only to find out that I needed to pay $80 of fees on top of that exact number. 

It was frustrating but I had enough extra to pay it off, because I am usually prepared.

When saving for something, give yourself a cushion of extra money for any bill. Sometimes there will be a 3% transaction fee you had not anticipated that might thwart your plans, so have this in you pocket. 

Ask if you can afford it twice. 

If you are saving for something, it means you cannot afford it. When making a sizeable purchase, ask yourself if you can buy two of the item or experience. If you can–brava. You can afford it.

A rule some finance experts I listen to said is if you buy something that is $150, put $150 in your savings to pay yourself as well. This way it hurts but benefits you. 

Always pay yourself first. 

Find your chapter. 

This controls your mindset.

When you are working towards a goal–paying off debt, creating some serious savings for a rainy day, or building a deposit towards a home–do this. 

Keep track of where you are within your goal and give yourself small rewards for each mini milestone within that goal. 

It does not have to be vegging out in front of the TV or a new addition to your wardrobe. What I mean is go through your own journey.

The way to do this can be by checking off another day in the calendar of your planner, counting your cash you saved in your hand, or adding up all the selfies you took in an album of every day you went to work. 

Visual reminders will keep you going especially when working towards a goal to see how far you have come. It will reinforce your mission and motivate you to keep going. They are also some significant dopamine hits.

Do not be tied to material things. 

Not to get all Buddhist on you, but forget social media and do not fall into marketing traps. The latest whatever will not make your life better. You make your life better.

The action of small habits you do everyday, such as meal prepping, organising your work bag for the next day, and putting an outfit together to help you feel ready for tomorrow will catapult you deeper into your objectives. 

Action gets you somewhere. Not stalling your plans, because you had a moment of weakness that led you astray from your plans. That is not your style.

Your new sustainability is living in discipline.

Discipline is self respect. 

A lot of people might not think living simply is extreme or difficult, but you streamline your attention on the things that are important to you. 

Nobody can tell you what this is but yourself. One of my favourite quotes is

You cannot stop someone who knows where they are going.

A lot of people who live average lives where there goals and needs are not met think that discipline is not worth the reward. You see the reward where they see the risk and sacrifice. 

When you succeed, you are not the only one who benefits.

Once you reach your goal or even are in the interim of where you want to be, people notice. Your energy shifts and you glow. 

Others value what you have to say and offer more, because they gain [more] respect for you. It is not the aim but merely a symptom.  

Once you do hit your monetary goals, people will flood you with compliments, ask for advice, and want to be around you for reasons they cannot explain. 

You are no longer average, because you fought past the average life of living paycheck to paycheck. Past the average of people who do not dress up. Past the average of those who do not take care of their health. 

Simple because you were willing to put in the effort where others did not dare think about sacrificing.

Discover your method: avalanche or snowball.

There are 2 helpful methods when it comes to savings and paying off bills.

Some people tackle debt or bills with the avalanche method. They start with the biggest bill that takes a burden off their mind and work their way down.

Others start small with the most miniscule of bills that gives them momentum to take on greater debts or goals. 

Personally, I have done both. 

My method: Snowball for savings. Avalanche for bills.

The snowball method is great if you are dipping your toe into financial freedom for the first time. It gives you small tastes of achievement when it comes to seeing your savings grow in the long term.

When it comes to bills, I like to do the avalanche method so I can stop holding my breath. You can also do a bit of both when it comes to saving and investments, alternating for more balance.

Either way,  you will enjoy your day to day life better and find yourself living larger when you go out, because you have more options and opportunities.

Don’t be cheap with things that make your life easier.

I don’t believe in no-buys 100%. I have done them and literally got sick for one month, because I held back on taking care of myself with items that I really needed. 

For instance, I was planning on living without a mattress for a while, but it destroyed my sleep, my body, and my mind. I splurged on a mattress and it changed my life. It sounds so simple, yet extreme restrictions like this will make you ill. 

Do not cheap out buying lesser skincare if you know your face cannot handle it. Do not damage your health by buying poorly food. Your health is number 1 and that is the first priority. 

If you think you are doing yourself a service by limiting all facets of your life–you are doing it wrong. I still do body scrubs, wear beautiful clothes, and use premium products on my hair. 

The presentation of your physical appearance and health will weigh on your mind and make you miserable if you do not take care of them. 

This same concept applies to your home, car, and relationships. Spend like a king where you need to. Not frivolously on nonessentials that make your everyday life dull. 

That is not a life worth living. The luxurious little things everyday is what brings you closer to your goal and through the brief duration of sacrifice. 

Remember budgets create freedom. 

As long as you know what you can spend, only spend within that range. 

You have the whole incarnation of cleansers at your disposal $30 and under. It literally goes down the drain anyway. This is a small example. 

Persisting within your tax bracket at this moment in time is what will grow your earnings in the coming future. 

The goal is to not live paycheck to paycheck only to survive and see your income blast beyond your bills. 

Enjoy the freedom you have within your earnings. There is plenty of it. It is a matter of noticing and being grateful for what you have now.  

Make future you happy. 

The woman who prepares herself now will have a happy tomorrow. 

If an experience or item is not worth your time or energy–do not do or buy it. Set boundaries with yourself. With your time. Your capabilities in the present moment. 

Technically I can rest and skate by just fine with what I am making now. I choose not to, because I want to grow even faster.

Early retirement means a soft life for longer. 

I am not stressed or feel inhibited because it is my way of life and my normal. 

When you live in a way that gets you closer to your goals one day at a time, you do not even have to think about it anymore. 

If you’re ready to stop surviving and start building a soft, structured, luxurious life on your own terms

This is exactly what we do inside The It Girl School.

Your relationship with money, discipline, and lifestyle doesn’t have to feel restrictive—it can feel intentional, elevated, and deeply empowering.

Join The It Girl School at TheItGirlSchool.com and learn how to create a life that looks good, feels calm, and is built to support your future self—not stress her out.

Because luxury isn’t just what you buy—it’s how you live every single day.