How do you stick to your shopping budget? - YouLookFab Forum

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How do you stick to your shopping budget?

Staysfit

Veteran

Today my DH and I created a clothing budget. We decided that I should set aside a monthly dollar amount for clothing. Not included in that amount is anything spent on exercise clothing/gear, underwear or other underpinnings, socks, coats and outdoor boots. If I don't use the money from one month it is rolled over to the next month.

I have never successfully followed a budget before because I have become distracted by feeling that something is wrong with my wardrobe and feeling like I need additional items to make it work and feel complete. These thoughts fuel shopping sprees and impulse buys. I had an overstuffed closet, new clothing with tags that went unworn, and it was hard to put together outfits. I have worked hard to learn new ways to dress and to understand my personal style so I could reduce these problems. This week, my DD reviewed contrast, color contrast and pattern mixing (I need repetition to understand some concepts). It occurred to me while we looked at my clothes that I no longer feel like my wardrobe is "broken" and I am not getting triggered into shopping impulsively although I do follow my heart. I have goals, direction, and it's a pleasure to get dressed. I think I'm ready to follow a budget now, and I'm hoping it will reinforce selective tendencies about what I add to my closet so I can maintain what I have achieved. Does anyone find that budgets help them in this way?

I am thinking of using a debit card as a way of sticking to the budget. Does anyone do this? Are their pro's / con's to this? What other ways do you use to stick to your budget?

Shopping

46 replies

Latest reply was from Gaylene

Deborah

Veteran

Staysfit, this may sound a little old fashioned but my husband manages our budget. We agree on it together and make all decisions together but his is the 'administrator' because he is better at it than I am.

My clothing budget is held in an independent account and when it's gone, it's gone. An amount goes in monthly and its up to me if I save it or spend it. This has worked well for us for many years. I do not purchase any of my clothing using credit. If I don't have the money, I don't buy. This has absolutely helped me to learn to manage my money, plan and make much better decisions. Using a debit card is a great way to do it as long as you are not tempted to 'dip' into other money:)

Anonymous

I have an auto withdraw from my main account, which goes into a savings account that I specifically use for clothing, makeup, facials and other personal grooming. Since I usually spend a lot at once (I have to buy full outfits), I typically wait for the account to build up before I spend. This usually works for me as there's often a long period--typically now through March --where I don't do much clothes shopping. This year I didn't buy a lot at NAS as the shoes weren't what I was looking for. So I'll (hopefully) find some styles I like in the next month or so.

Jen W

I have a separate account with a debit card for my clothing. It gets funded 2-3 times throughout the year with a portion of my annual budget. It works great for me to have a separate account so that I don't get creative with the math. It does get tricky during NAS though, waiting for returns to get refunded so I can order another round!

Karie

(website)

Veteran

I have a certain amount from each paycheck that goes into a separate account. I think ahead about what my wardrobe needs/wants are, and save or spend accordingly.

Staysfit

Veteran

Deborah, it sounds like the system you and your husband use is similar to how my husband and I have done things with the difference that I have been the primary money manager. I like the idea of having a separate bank account, and have seen debit card options that I can tie into a bank account as opposed to a pre-paid card.

Aliona, I'm curious if your savings account is simply a holding zone for the money you have budgeted to spend on yourself for a specific purpose, or if you also are saving money to earn interest and maintain its value?

Jen W, I wondered about the returns and this very issue. I'm glad you mentioned it. Can you use the debit card to pay your Nordstrom charge card?

Karie, im curious why you and others seem to have separate accounts for clothing. Do you have yet another account for groceries? Or maybe vacations? In terms of separte accounts, I have savings for my children, savings and checking for business and personal, but as I consider adding one for clothing, it makes me think about the priorities I have for my money, etc.

Anonymous

Ah, sorry, I wasn't too clear: I have multiple different savings accounts, each with a specific purpose. I have one for 'emergencies,' one for investing, one for clothing, one for vacation, etc. At the start of the year, I decide how much I want to put in each account and set up automatic withdrawals. I admit it's a lot to manage, but I'm a bit impulsive and it's the only way I can stay structured and disciplined. This method works for me because my paycheques are always the same amount so there's no worry of not having funds to cover regular transfers. It would be harder if my monthly income varied.

ETA: a budget for 'emergencies' may sound odd--how do I decide how much to put in there? This account is the 'lost my job and need 6 months expenses' that experts go on about. I set aside for that, but some years I anticipate I'll need more; for example our 10-year old car just started making a funny noise and we learned our cat May need medical care. So next year I will be upping my emergency percentage and scaling back on another budget--likely clothing. The only thing we don't budget for is food and household.

Gaylene

Veteran

I kept (and keep) to a budget by not focusing on dollars, but, instead, on the number of items I permit myself to buy in a year. My arbitary number is 12 and includes everything--shoes, jewelry, clothes, bags, eveningwear, outwear, and gear. The only things I don't include are socks and undies. I don't limit the dollar amounts for the items, so theoretically I could spend thousands. In practice, I spend much less because I am over-the-top picky. A piece has to have something that really speaks to me before I'll give up one of my precious numbers for it.

It dawned on me that not focusing on price works for me in the same way that not counting calories helped me lose weight. Once I told myself I could eat whatever I wanted as long as I ate high calorie foods a quarter at a time, most lost their appeal after a couple of bites. Once I knew I could buy what I wanted--as long as I stuck to my number--much of what I saw just didn't interest me enough to "waste" a number. Marketers are very good at making us long for something new, but once you hold the item in your hand and ask if it is important enough to forgo something in the future, the urge can fade quite quickly. And being highly selective is a good way to stick to a budget.

Joy

Veteran

I have and continue to try to hold myself to a limited number of items like Gaylene. It works because I hesitate to buy something unless I really need and love it. I know that I can go a long time without buying anything so just calling a halt and not going to stores also helps.
It sounds like you are happy with what is in your closet. That is perfect timing for slowing down and enjoying what you have.

CocoLion

(website)

Veteran

I admire the way you are honest yet non-judgmental about your process.

I use cash and pre-paid debit cards, only. I am an emotional shopper and this is a way to keep me from going broke.

Maneera

(website)

Veteran

What a wonderful thread, Staysfit. Thank you so much for starting this....I'm very interested in this topic too.

I have NEVER held myself accountable for my shopping. I'm an impulsive shopper and must buy something I love. However, in recent months, I've realized that

1) I duplicate a lot
2) I don't always shop with a plan
3) I get too focused on one category and collect too-much too-soon there and then get confused with too much choice. For example - I'd buy 4-5 boot cut jeans together, or 4-5 Tunics or dresses and then not do justice to everything.

I've never worried about a shopping budget because I never needed to. I pay be credit cards and clear all credit card bills every 15 days. To be honest, I don't manage the money at all because I'm not good at budgeting and finances, nor do I like to keep a track of money. My husband is far better at it and he handles everything - I just write a cheque for whatever he wants me to pay for (usually one of the credit cards as we have 2, and we both share them). But the honest truth is that very often I don't pay any bills at all ---- he manages the credit card bills. And I usually always manage all household expenses ---- basically things you need to pay for with cash.

The only thing we budget and plan for is vacations and home renovations. We've never planned anything else, but I'm beginning to see the merit in this process. If you make wiser shopping decisions and put everything you buy to good use, it'll definitely 'feel' better.

It's the 1st tomorrow. I'm ready to start a process too. So I would love to read more thoughts on the merits between a set budget or a set number of items. Personally, I prefer a set monthly budget too.

Style Fan

Veteran

I follow a process similar to Gaylene. I have a list of items that I want/need to buy and I buy them when I find them. It has taken me 2 years to get to this point. I use to go shopping and buy clothes. Nice good quality clothes but I didn't have much of a plan. Now that I am retired I have been researching wardrobes on the internet and realized why I was always feeling like I didn't have the right clothes.
I have thought about having a set amount to spend on clothes but I don't buy that much now. Probably 10 to 12 items a year. This does not include underthings, socks, gear.

Suz

(website)

Veteran

I am reading this with great interest.

My own confession: I've not really had a proper budget for many years.

First, because my earnings were so insignificant that I could not afford to buy clothes, period. Of course I bought undies, etc. And I bought a couple of pieces of regular clothing each year. But...not much. And much of what I did buy was at thrift.

Then I started earning more and essentially went on a crazy buying spree -- the only "budget" being what I could pay for! I don't go into debt for my clothing and paid my credit cards each month, as Manny describes -- but I spent freely other than that without thinking a heck of a lot about it. This was while I was building a wardrobe.

This is the first year that I am able to seriously think about a budget, and I'm considering my options as I move forward. I would like to spend responsibly and well and I would also like to continue to have fun with fashion.

Suz

(website)

Veteran

ETA -- but i do want to add. In my impecunious student years, one of the best "budgeting" techniques I had was to pay my rent out of my salary (I worked as a waitress to support myself while in school) and to pay my household expenses and personal expenses out of my tips. I wasn't able to save at this time of my life, but at least I never over spent, and I had a good handle on how much I could spend on my clothing. It was one of my major expenses at that time (early 20s) and I definitely worked hard for those tips!

Liz

Veteran

I budget for all my money, not just clothes, and use software to track. That way, I only need one account for everything and the software tells me how much I have to spend in different categories.

But that's just "how I track.' How I "stick to it" is a different question. I had a huge case of "don't tell me what to do," and I didn't want to follow the limits the budget put in place. For me, the "stick to" came down to the willingness to tell myself no and to wait for what I wanted. And cultivating contentment with what I had. Those are adult traits I'd often prefer not to exhibit!

Maneera

(website)

Veteran

Ok, so I'm not alone. Suz has gone through something like this too! And Liz says she's gone through a "don't tell me what to do" phase too Phew....big relief!

To be fair, it's possible that many of you have a set budget and are much wiser with your money because you're older..and of course, wiser And maybe everyone has a different process of learning.

I can relate well to Liz...for me, its willingness to try to control my shopping. Probably it would be easier if I couldn't afford it. I have gone through a phase in my life when I simply didn't have the money to splurge on clothes and I thrifted clothes too...and rarely bought anything. Then I could afford things and I'm currently in my 'shop like crazy' phase. It's also a wardrobe building stage...though my wardrobe is exploding. However, MANAGING your wardrobe is such an important part of building a wardrobe.

Buying 10 things and wearing just 1-2 of them is not wise use of my money or wise utilization of my closet space. That is where the willingness to put some 'limits' comes from.

I'm leaning towards a set budget instead of set number of items. I think the important thing at this stage is to START somewhere. Can always switch to set number of pieces later on if I think that may be a better approach to manage my wardrobe.

What are you planning, Staysfit?

Elly

Veteran

I think there was a post several years ago done for the blog by one of our own financial experts that talked about budgeting that suggested clothing be a line item in a household budget with between 4% and 10% of net household income going to clothing. At first I thought this sounded high, but after doing the math for my own income, it wasn't. I tend to fall on the higher side of that percentage (7-8%) simply because I have a very low income for a professional and otherwise spend very little money on personal grooming (my hairdresser charges $35 for a haircut, for example). I have substantial savings for a person of my age and income level and save every month and otherwise have no debt.

That said, I don't use credit and I don't save a % every month especially for clothing. Instead, I usually sit down near the end of winter at look at what I will need for next winter (I wear clothes out, remember) and what I need for summer and then break down how those needs fit into my budget and what else I would like that I can afford to buy. It sounds very planned, but actually it is usually more organic--- a winter coat or a pair of boots is a chunk of the budget, as is replacing all my summer shoes or jeans. I know about how much those things cost and can figure out how much money I have to "play" with and use for replacing t-shirts, etc.

I save most of my clothing money most of the year, and then it is sitting there and I can pull it out of savings (my checking and savings are linked, so it is a quick online transfer) and use it when I need it-- like in May when I shop for summer, July during NAS, and in the Fall. Sometimes I will order $1000 of clothing at a time, but I know I will only keep a fraction of that.

I'm not an emotional shopper though. In fact, I'm not a big spender in any part of my life (except maybe on education) and therefore I don't have any guilt if I decide to go over budget with a pair of boots or something. I haven't yet, since I've been tracking.

Laura (rhubarbgirl)

(website)

Veteran

I think it's easy to *under*estimate what a reasonable clothing allowance is, especially if your wardrobe is in a decent place. I've seen it happen to ladies here and it happened to me, and the penny-pinching catches up to you eventually because you have bought the bare minimum of stuff and then all your old things wear out or look really dated at once. That is to say, unless you are in a situation where you're barely getting by and struggling to pay the bills, don't cheap yourself out with the clothing budget, and preferably do it by season or year rather than month. When I kept track by month, it had the effect that I always wanted to go as cheap and minimal as possible, and never wanted to spend on the pricier pieces, even if they were totally necessary for my wardrobe.

Answering 'how' you stick to it is another thing. I think it comes down to 'why' - a budget is a tool that you use so you can accomplish something. I think with a clothing budget, it's not just about not going broke and making the numbers balance (as necessary as that is), it's about what other goals you want to accomplish - spend money less impulsively, spend money more impulsively (it could happen!), buy more evenly for the seasons, concentrate your money on your dominant season, change your style, replace old favorite items... The possibilities are numerous and it depends on you.

My clothing budget is separate from our household budgeting and bill paying, so in a way it's an imaginary budget as far as the credit cards go. I started tracking purchases last year, I think, and it's evolved into an allowance that's 'put in' every cross-quarter day, which works out to eight periods a year. During the first half of each season I focus on buying for that season, and the second half for the next season. I'm also experimenting with adding a number of garments goal like Gaylene mentions - mine right now is not a hard number, just an aim. Those constraints were to encourage me to shop for the season I'm in and reduce my out of season bargain hunting, and buy less items but higher quality ones.

Anonymous

My DH and I sat down together to create a monthly budget, which we stick to. This seems to be working well, as he wisely incorporated a decent clothing allowance for me.

Summer

Veteran

Setting a (very small) clothes budget has given me the freedom to spend money on myself without guilt. Formerly, I would buy only when absolutely necessary, and then as economically as possible. The result? A very limited wardrobe and a lot of frustration.
Now, I let my clothes allowance build up until 1) I need something, 2) I see something that would extend my wardrobe, or 3) I find something that I really love. My wardrobe is still small by YLF standards, but I now have many more options to work with, plus I know that each purchase is affordable for me.

As for sticking to the budget: as with dieting, it all comes down to will-power and self-control. I'm sure that we'd all love to spend without a second thought, but for many that is not a feasible option.

E

Veteran

When I was growing up, I had a monthly clothing allowance that my mom kept track of when we went shopping, so I still think in terms up a monthly budget, although this year I'm trying out two big shopping events, so I spent six months at a time. I really liked this, because it reminded me of the big picture, and let me decide where to splurge and where to save. I budget separately for shoes, because I don't have a car, walk 2-5 miles a day, and have arthritis, so good shoes are not a 'fun money' situation like clothes shopping is. Anyway, this year has been extra easy to stay within my budget; since I only did two big shopping events, I just stopped browsing when I hit my limit. Yet another reason why I'm really enjoying my new method!

ETA: I don't have a separate account of clothing, I just keep track of my purchases in a simple list on my computer, and pay for them with ny usual checking account.

Anonymous

The amount I spend in the spring/summer is a portion of my bonus and tax refund money. For fall/winter, I get a bit antsy about money, because of Christmas expenditures, heating bills, and lower income due to CPP/EI ( pension and employment insurance) charges coming back into effect in January. So I spend considerably less. I don't have a set budget but my clothes come last in terms of priority.

I think what I need to do, now that I think about it, is try to buy a portion of my fall/winter clothes in the spring, when I have the budget. I'm not quite sure why others feel that buying off season is a bad idea. Perhaps because you're getting the dregs?

Angie

(website)

Fashion Stylist

I have a strict budget that I adhere to monthly.

It is for FASHION, and not basics like undies, sleepwear, socks, workout wear or lounge wear.
My haircuts, eyewear, hair products and beauty products are not part of this budget either.
My fashion budget increases at NAS time, and when we go on holiday.
If I am over one month, I have to be under the next.
What I don't use one month rolls into the next.

This system really works for me and I am disciplined about it.

Lyn D.

Veteran

For me sticking to a clothing budget is a matter of having reasonable expectations and a large degree of self-control!
I base my budget on previous years so it is practical, and try to limit my shopping outings and on-line browsing.
I base my numbers on number of wears per item and a 1-in-1-out strategy.

Amy

(website)

Veteran

When I don't have a lot extra to spend, I stop going into stores and stop looking at fashion websites. It helps curb the desire for me.

Laurinda

Veteran

Mr. Laurinda & I each have our own accounts for anything personal, and a joint account for anything we spend as a couple (household expenses).

Thistle

Veteran

I am in charge of all of the finances in the house. I set aside a certain dollar amount per pay period. It goes into a clothing fund. ALL clothing purchased for me, my daughters, or my husband comes out of this account.

If there is no money in the account, I don't spend. I have never fully emptied the account, thoug, probably because I worry then I would find something we NEED. This has kept me from ever going over budget. It also means I have the funds on hand to spend at NAS.

I don't believe in going into debt for anything but long term durable goods (house, car, etc.)

Staysfit

Veteran

Aliona, thanks for the clarification. I can appreciate the need to separate accounts in this manner. I don't have automatic deposit or withdraw capacity unless I'm the one making the transfers so it would be extra work to have multiple accounts as you describe. if I ever had an employer that offered it, I would happily set it up so my money could be whisked away without my direct everyday awareness. I like the idea and think it would cut down on impulsive shopping.

Gaylene, my DD suggested an item limit either per year or per month. i have been thinking about item limits. Especially the part about how it forces very judicious thinking before making a purchase. A part of me is attracted to this, but another is repelled. I worry that i will lose my ability to feel joy, be emotionally free and to lead with my heart when making purchases. This must sound counter to wanting to stop impulsive purchases but I think there is a subtle distinction. I love how this concept reduces waste; forces careful wardrobe planning and responsible shopping. (For all the many meanings responsible includes)

Joy, I'm curious how you pick the number of items? (The same question applies for Gaylene and anyone else who limits their shopping with a number cap.). I have a set number of hangers in my closet, for example, but I could still do an infinite number of 1:1 switches of new items for old.

Maneera, I'm glad to hear you plan to spend some time learning and thinking about the budget and financing of your clothing. It's good for everyone regardless of income or even mathematical/accounting skills. One year ago, I was not ready to look at budget yet. I needed to address the other issues first. It's hard to stick to a budget if you are still caught up in old patterns. As you listed, duplication, shopping without a plan, and collecting too many of the same silhouette. I figured out my sticky areas and worked on them so I can stay on track. Hopefully you are getting to that point also.

Style fan, I love the idea of a list of things you need/want for your wardrobe. I created one for this year. I also included some wildcard items though because I wanted to leave room in case I run into something I love that isn't on my list but still fits into my style. For example an awesome pair of earrings, or a hand knit sweater. I am curious what happens if find more than your item limit number based on your list? (Or do you only create a list as large as your item limit number?)

Penny

Veteran

Interesting to hear everyone's approaches - I just started tracking this year, and I think it has reduced the amount and quantity of my spending while increasing the amount I'm willing to spend on a smaller number of items. I separately track the number of existing items in each wardrobe category and generally do one in / one out, which makes me very deliberate in keeping pieces (although I order and return quite a lot!)

Staysfit

Veteran

(done in two sections, sorry)
Suz, like you, more money earned can lead to more money spending on clothing. I have had the feast and famine experience as a student and then upon graduation and getting a better job, paying off student loans, etc. I would never say that I have overspent on clothing, however, I would say that the time has now come to focus my energy and resources on other parts of my life once again. I also feel that I am very ready to begin this next journey, whatever it may be.

Liz, you hit it straight on with your comments! I have used software and online resources for tracking finances as you mention for years. Tracking alone does not change or limit spending behavior. Even setting a budget and saying this is the limit doesn't work unless you stick to it.

Elly, I'm curious is the 4-7% of income supposed to be divided among the family members? Is that a per family member amount? It's an interesting benchmark. I did not use it, I am using a much lower percentage, but I still feel like the budget is generous enough for me for the year. Perhaps I am being delusional, but I don't think so.

Smittie, It sounds like you might benefit from Aliona's plan of setting aside money for times of the year when less money is coming in so that the finances are more even. (I'm not a financial planner so this is a huge disclaimer that I am not offering up any advice whatsoever). I am not a sale shopper because my size is usually picked over and gone by the time sales role around. I also think sales are just a gimmick to get me into a store so I will get distracted and buy something I didn't want in the first place.

Angie, It sounds like the system I am setting up is very similar to yours. The key for me will be staying disciplined.

Lyn D. and Amy, I agree that when not able to shop, I should stop looking at online and brick and mortar shops.

Laurinda, In my experience couples handle finances in several ways and the method you describe is a useful one. It is not the choice my husband and I have made. We choose to pool our money and have always had joint accounts. If I open a separate account for clothing, it is with my husbands goodwill and acknowledgment that this is for a specific purpose in keeping with our goals as a couple.

Thistle, if I keep spending like I have over the past year, I would probably be in debt at some point however, so far I am still able to pay all my bills and we still have a roof over our heads, etc.

ETA: I'm not sure how I missed Bettycrocker, Rhubarbgirl, Summer and E! Thanks for your input. I read all of your posts, and if I get a chance will come back later to comment.

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