First Person: Living a Six-Figure Lifestyle on a $30,000 Salary

First Person: Living a Six-Figure Lifestyle on a $30,000 Salary

Like millions of Americans out there, I like the nicer things in life. I have an affinity for high-end cars, designer clothing, and name-brand home furnishings.
There was a time when I had the six-figure income to afford these things. That was before the crash of what has now become known as the dot-com era. After losing many nice things, I learned that even living at one's means can be a risky proposition. So the challenge became how to continue to live that lifestyle while spending drastically less than I did before.
I wanted to figure out how I could afford these things at a $30,000-a-year salary, just in case I ever had another salary decrease. That planning all paid off when the great recession came. Here's how I learned to have a six-figure lifestyle with a $30,000 yearly budget.

How to Get the Big Home
This one was all about patience, hard work, and discipline. First: New homes are out of the question. They're generally overpriced. I almost bid on a couple of for-sale-by-owner homes, but just couldn't get the right combination of price and neighborhood. I focused on HUD homes and foreclosures, and learned quickly that banks don't want homes on their books. I found a HUD home in a neighborhood with prices averaging above $200,000. My home was more than 60% less than that. It required a bit of work -- I spent a lot of free time on it as a do-it-yourself project -- but in the end I had my nice home. No one knows that I paid less than $80,000 and that I have a monthly mortgage payment of less than $500.
Getting the Car to Match the Lifestyle
I'm a sport and luxury car enthusiast. First I wanted a Mustang, and this was the easiest deal of them all to find. I didn't go to dealers for this one. I went to Craigslist and the classified ads. I know many people will say that this is immoral, but I found a desperate seller who was willing to almost give the car to me because his notes were too high. I was happy, and he was happy to be rid of it. A simple refinancing and I had a car note for less than $150 per month. Not long after that I decided that I wanted a Lexus, and I did go through a dealer to get that one. I got a great deal on a used Lexus (I no longer buy new cars). Here's how I saved about $5,000 on that deal.
I Love Movado Watches
Anyone who knows me knows that I love Movado watches and will rarely, if ever, wear anything else. At a $30,000-a-year salary, I certainly can't afford to shell out $1,000 or $2,000 on a watch. So I had to find a new source. I began scouring Craigslist, eBay, and pawn shops for good deals on watches. I found three Movado watches that were used and paid less than $500 total for all three of them. I recently sold one of these watches on eBay for $600. I now wear watches valued at more than $800 each, and I basically paid nothing for them.

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