Recently some friends were talking in a Facebook group about how much they spend on clothes annually. While few knew their budgets annually most responded that they spend fairly modestly, only after all the bills are paid, and the kids are clothed (kids always come first don’t they?).
Several women said they had no idea how much they spent, and some said they didn’t even want to know. While I wasn’t surprised by this, I encouraged everyone to make a budget. I know some of you are cringing, do budget and fashion even belong in the same sentence? Yes, yes they do.
Remember budgets aren’t a 4 letter word. They allow us to choose our purchases more wisely. So whether it’s $600/year or $600/month that you have to spend on fashion, knowing your budget will help you make savvy choices while looking chic.
If you were/are a Sex in the City fan you may remember the episode where Carrie has to come up with a downpayment for her apartment. She laments not having enough funds for a downpayment to Miranda while shoe shopping.
Miranda: “You have 100 pairs of these at $400 each? There’s your downpayment.”
Carrie: “But that would only be $4,000.”
Miranda: “No, it’s $40,000.”
Cue Carrie’s shocked face. She had no idea she had spent so much on shoes.
The closet with Carrie Bradshaw’s $40k shoe collection (via hbo.com)
Don’t end up like Carrie Bradshaw lamenting that you had the funds for a downpayment (or something else you need). Trust me we don’t all have a Charlotte in our life willing to loan us money. (for those non-SATC folks Carrie’s friend loans her the funds for the downpayment)
Why you NEED a fashion fund
Yes, you need a budget, and no budget is not a four letter word. Having a budget, or what we’re calling a fashion fund, in place allows you to control your spending, and manage your money in a way that’s meaningful to you. Once you know how much you are spending it’s easier to decide if you want to continue spending that amount or focus your money on other areas.
It’s likely you have an overall budget in place for your bills and expenses as well as savings and investments. If you aren’t comfortably covering your expenses, and contributing to emergency and retirement funds clothing is a place you will have to cut back significantly. One way you can do that is by shopping in your closet, but you can also consider filling in anything you need wardrobe wise with consignment sales, end of season sales, and by shopping at stores like Target and JCPenney.
What do you really need?
It’s time to get real about what you truly need wardrobe-wise. Spring clean your closet and make a list of items you need for work, events, or occasions that are coming up in the next few months. Look for versatile pieces that can go from season to season such as these looks I put together on Polyvore.
What works for me
I personally prefer to have two lump sums in my budget that meet my ‘fashion’ needs. I have a budget in place for ‘clothing’ that includes shoes, handbags, accessories, jewelry, etc. I prefer to have a family budget for this since we tend to buy clothing in chunks. One month may be more focused on the growing kids while another may be purchasing my husband’s work wardrobe. This allows me some flexibility when it comes to sales and impulse purchases (things we don’t need but would use).
My other category is ‘Personal Care’ which includes things like haircuts, skincare products, and makeup. Typically any extras like the occasional manicure/pedicure come from my ‘allowance’ since it is both rare for me to get them, and I look for deals to offset the cost.
Creating a Fashion Fund: How much should you spend?
There’s a reason it’s called personal finance. 😉 You have to look at your overall budget and your individual needs (work wardrobes for instance require more than if you typically work from home or stay at home with your kids). Beyond that if you have the extra money to spend it’s really up to you how you spend it. If shoes and designer labels are how you love to spend your extra money, then more power to you!
Setting up a fashion fund is pretty simple-you just allot a monthly number in your budget and track your spending. It helps to have one credit card or account you use for this purpose. The great thing about having a fashion fund is that it allows you to spend more on some things while saving on others. For instance you may want to spend more on a handbag but skimp on accessories. It’s really a matter of allocating your funds where you want to spend it.
Do you have a fashion fund or budget? Does it help you fund larger purchases while keeping your overall budget in check?
Kelly
i TRACK my clothing money but i rarely set a budget for it. I tend to only buy clothes on two occasions: special event coming up and i’ve “nothing” to wear; and/or my pants shrunk in the closet and i need a pair that fit asap. these purchases I will spend good money on. Anything else i need can come from Target.
oh wait. i am a sucker for purses and shoes.
Oh you’re so smart. I pretty much just buy stuff when I see it and love it which either means I’m super broke or I’m rolling in dough because some months I can find tons of cuteness and some months are so fashionly blah.
This is sooo helpful! Creating a list really does cut down on buying stuff that you do not need and/or won’t wear. And yes – a basic piece like that black dress can look 100% different with inexpensive accessories. You have a super taste in shoes – lets go shopping some time 🙂
Love this post, and I loved that episode, I totally remember it because I’m terrible at math and did the calculation just like Carrie, when Miranda corrected her- my lightbulb went off as well.
Cleaning out my closet is something that I need to do this year. There are several items that I no longer wear and it would probably help figure out what I need. I hesitate to make a budget for clothing though because I find that I buy more items when I think about it. I can see how it would be beneficial for others who have a spending problem though.
Love the way you did the accessories with the dress. I’m liking that tangerine sweater with it but the striped shoes are really fun too!