Live a life of luxury - on a budget!

Splashing out on a treat doesn't have to cost a small fortune. Whether you want to dine in a posh restaurant, stay in a 5 star-hotel or splash out on yourself, here's how to do it on a budget.

Frugal living is what lovemoney.com is all about. We don't believe you should waste money when you don't really need to, especially in these tough financial times.

But every now and then it's nice to have a treat - and why not? You deserve it! Luckily for you, there are plenty of ways you can enjoy a little luxury without breaking the bank.

1. Eat out at an expensive restaurant - cheaply!

You can't fail to have noticed what big business 2-for-1 vouchers have become for eating out lately. Just take a look at our Frugal Food series every week for a round-up of all the latest deals.

But while there's absolutely nothing wrong with pizza chains for cheap eats, what if you're looking for something a little more special?

I must admit I absolutely hate paying full price for anything. If there's money off to be had, I'm going to have it! So whenever I want to book a meal out for a special occasion I always check out the 50% off deals at TopTable for great discounts at top restaurants and for special set menus at all my favourite places. Tables can be booked easily online too.

5pm is also worth checking out for restaurants in your area which offer discounted set menus. Don't forget to read the ratings and reviews so you can be sure of a great dining experience.  

And if you're looking for something really fancy, check out the 3 star selections at SquareMeal where you'll find a handful of special offers at some fantastic restaurants. There are also lots of other deals available too including up to 50% off, set menus, drinks offers and dinner & theatre packages.

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2. Have a bargain night out at the theatre

As well as treating yourself to a meal out, you can also enjoy a trip to the theatre without paying top dollar for your tickets. There are lots of websites where you can buy cheaper seats but we like DiscountTheatre, SeatWave and Whatsonstage.com. You should also check out the many fantastic special offers at TheatreMonkey too.

Showpairs.co.uk is particularly good if you want two tickets for the price of one.

3. Stay at a 5-star hotel

If you want a budget break you might think about staying in a hostel. Cheap and cheerful hostel accommodation is available all over the world.

But, when you're in need of something a little more luxurious, there are ways of staying somewhere rather more upmarket without having to pay through the nose. For example, try booking a 'top secret hotel' at Lastminute.com where you could get up to 45% off some fantastic 4 and 5 star rooms. You simply choose a date and a place, and Lastminute.com will give you a list of unnamed hotels in the right location with a description and rating. All you need to do is book the one you like the sound of most.

American site www.hotwire.com offers a similar service for the US and Europe.

Here's a tip: the description provided is sometimes taken directly from the hotel's website. You can try to cheat top secret hotel by putting the description in Google and looking for a match before you book. But, of course, that will ruin the surprise!

You can also check out Lastminute.com for a range of cheap city breaks all over Europe and beyond. Another good choice for bargains everywhere is Hotelscomparison.com where you can find the cheapest prices on all types of hotels from budget to ultra glamorous.

• Adopt our goal: Have a cheap holiday 

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4. Splash out on yourself

Once you've booked your evening out and a stay in a fabulous hotel, you'll probably want to look your best for the event. Annoyingly, designer beauty products can cost an arm and a leg, but you can ditch the mega price tag if you know where to look.

Beauty products

First of all, check out discount store Strawberry.net which offers a wide range of skincare, make-up, cosmetics and fragrances at knockdown prices (with free shipping on all items except fragrances).

You can also get some great offers at BlushCosmetics.com, while DirectCosmetics offers hundreds of money off deals on all sorts of beauty products.

Fragrances

If it's fine fragrances you're after, PerfumePoint has huge discounts of up to 70% off a wide range of perfumes. Don't forget to also check out FragranceDirect, and shop around for the best prices on perfumes and aftershave at FragrancesCompared.

You could also try bidding for discount beauty products and fragrances on Ebay. Just make sure any items you buy are new and preferably sold in their original packaging.

5. Pay for everything in the best possible way

If you ever have to pay for something, particularly if it costs over £100, make sure you pay for it in the best possible way.

That means using the right type of plastic. This is because, if you pay for something that costs more than £100 on your credit card, you have the protection of Section 75 of the Consumer Credit Act (1974). So if the service or goods you receive are not what you expected, you could have recourse for compensation from your credit card company.

But whatever you do, don't get into debt - instead, use a cashback credit card whenever you can afford to, and pay off this bill in full each month. This will ensure you get cashback on the purchases you make with this card.  For example, the American Express Platinum card offers 5% cashback on all purchases in the first three months, up to a maximum of £100. It's like getting a 5% discount on the hotel or restaurant bill - wherever you go!

However, it really is only worth doing if you can afford to pay off your cashback credit card bill as soon as it hits your doormat. Otherwise, the amount you will pay in interest will far outweigh the cashback you've earned.

This is a classic article which has been updated in April 2010.

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