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Budgetting--yearly,seasonally or monthly?

PalmFronds

HI ladies,
quick question for you. Do you budget for your wardrobe and if so, do you set out an amount for the year? Monthly? Seasonally?
I am trying to figure how best to do this as I am TRYING to reign in my spending while I hone my closet and wardrobe.I normally try to budget monthly but in the past it has not worked well.I end up having excess some months and more often negative numbers headed into the next.Having the monthly budget does not stop me from shopping, but it makes me pause and seriously consider if I need the item, so I like that atleast. I do also like the idea of yearly budget(have never tried it) and subtracting as I go, but know there is a good chance I would then freak out in November when I have nothing left and major rationalizing starts, ah ha ha ha!!!! To be truthful the only time I have been very good about not spending is during Lent when I have pledged to not shop.Otherwise my shopping bug is pretty naughty...I don't spend excessively, I don't think, but I would like to be better at it overall and waste less because I know I don't use my wardrobe as efficiently and completely as I should.
Curious about your approaches.
Thanks for sharing!

General

32 replies

Latest reply was from Gail

rute

Veteran

Like you I dont spend too much but I like to control myself and improve.
I find a monthly budget easier to manage but it depends on you shopping habbits.
If you don't shop much and hit the stores only when season changes maybe a budget per season would be easier

Meredith

Veteran

I have really been happy with my budgeting approach this past year. I formerly used a monthly approach, but now I budget by season. I've determined my seasons are September-November, December-February, March-May, and June to August. The budget for each season begins the month prior to each season (for example, I can start buying for fall in August.). I can use my entire seasonal budget and if I don't the balance rolls over to the next season. However, I do not allow myself to spend more than my seasonal budget. If I want to do that, I have to draw from my "wild card" fund. That pot of money is really supposed to be for a big-ticket item, so I usually think long and hard about whether I want to use those funds. My yearly budget is divided almost equally among the four seasons and the wild card pot, except I budget more for fall because the cooler months are a dominant season. This strategy has really helped me buy the clothes I need ahead of a season and has taken a bit of the handwringing out of purchasing a big ticket item (because I know I've budgeted for it). I hope this helps and you come up with a system that works well for you!

Jennifer

PalmFronds - thanks for raising this topic. I am in a very similar position to you, so I look forward to reading the responses. At the moment I am budgeting on a monthly basis but have overspent so am in "arrears" (figuratively speaking) to an embarrassing extent. Luckily I can afford it, but that virtual overspent amount bothers me a lot. I need to rein myself in but have a terrible time....Maybe you and I can both work on this and keep each other accountable!

Angie

(website)

Fashion Stylist

I set an mount for the month, but it does NOT include Wardrobe Basics, beauty products, my hair, alterations, dry-cleaning or gifts. My budget covers FASHION (clothing, footwear and accessories - and DOES include Wardrobe Essentials).

I am very strict about keeping my budget. And because I also buy higher end stuff, I sometimes have to save a few months of my budget to get what I want.

PalmFronds

Thanks for chiming in Rute, Jennifer, Angie and Meredith! Jennifer we can def help keep other in check. Like you, I can afford a fudge on the budget here and there but the virtual negative balance bothers me too. Meredith I really like that approach you are using and it sounds like one I may need to give a whirl.

Krissy

I budget monthly, but I really like the idea of budgeting per season. However, the monthly budget also goes for other expenses like electronics, books etc. It's sort of my "non-essential shopping" budget. If I want to spend more, I have a monthly "Misc" budget which I can dig into if need be.

For now I'll be sticking to my monthly budget, but I will think about the seasonal budget in the future. I don't think I'd be disciplined enough to have a yearly budget - both in sticking to it and keeping track of how much I spent!

Good luck with it! Having any sort of budget is good in any case.

PalmFronds

Angie I envy your discipline regarding the saving of some of your budget towards higher end items. I fail terribly at that

Angie

(website)

Fashion Stylist

I used to fail at it too, PF. But the more you do it, the easier it becomes because:

You realize how much you LOVE those higher end pieces after having them, so you're reinforced to save up for them more earnestly.
It helps when you are already really happy with your wardrobe. You can afford to be more patient, it that makes sense.

Laura (rhubarbgirl)

(website)

Veteran

Last year I started budgeting for fashion specifically, as opposed to just a general budget per month. I began the year doing it monthly, but gradually shifted to a seasonal approach, dividing each season into two halves, e.g. early fall / late fall etc. This year I'm trying a full seasonal approach, although I'm still wibbly wobbling about that a bit because of issues like when you're buying stuff out of season where does it count, etc.

If you're just tracking outlay, I think you can do it in any time period that makes sense for you - weekly, biweekly, per pay period, whatever. But if you're also using your budget as a kind of planning tool, which is what has started happening for me, seasonally maybe makes more sense. My clothing budget file has become a hybrid budget, tracking tool of what I bought and when, a wish list, and a planning tool for what I need each season and what I need to replace.

By that I mean, say I give myself x bucks per month for clothes, and then I go spend $x-1 on hilarious 80s Cosby sweaters at the thrift store. I've kept below my budget, but I haven't spent it wisely because at some point my shoes and underwear are going to wear out and I'll be commando with blisters in Cosby sweaters. But if I look at my budget worksheet and see that I've bought two Cosby sweaters already this month, it might occur to me that I should save some of that cash for jeans and underwear and things I can wear non ironically...

harmonica

Veteran

I need more of that patience. How about making a quarterly budget and a monthly budget? That would possibly keep you on track more or less every month. You could overspend a little or you could save up a bit for higher end pieces. Every third month you could go through your numbers, both items and cash. Just a thought

Star Viola

Well I don't budget for fashion as I am trying to wait until I lose some weight to get some nicer clothing, however I have a general budget which can easily include fashion. It's really simple it's laughable- I just budget the bills first, then food and gas, put some in savings, and whatever is left can be spent on "fun" things- ordering a pizza, clothing, etc. When I do buy clothing I almost always get things on clearance.

cinnamon fern

Veteran

I budget monthly but roll over unused funds. (I rolled over my unused funds from last year, too, all $27 of them.) I don't include hair, because I spend exactly the same amount every time, or beauty products, because I don't buy a lot. I do include underwear and workout gear, mainly because if I don't pay attention I can buy a ridiculous amount of cute workout gear.

I'm strict about not having a negative balance, mainly because moderation is hard for me - I find it easier to just have a strict rule than to have a general policy and think about what exceptions are justified.

I see the appeal of a quarterly budget. I use monthly mostly because everything else in my financial life happens once a month - paycheck, savings, mortgage, utilities, etc.

Gaylene

Veteran

Well, I've talked about my approach previously, so I won't go into it again here, but I'll just say that concentrating on the number of ITEMS (outside of basics) I add to my wardrobe per year has dramatically reduced how much I spend on clothes. I found that monthly amounts actually encouraged me to overspend--sort of "ooh, I haven't bought anything this month yet, and these sweaters/pants/jeans are 75% off, so maybe I should add another one to my closet".

Limiting the number of items (clothes, shoes, accessories), though, really makes me pause--"hmm, if I buy these jeans that will mean I'll have only eight more items for the rest of the year--and I still have ten months to go. Maybe I have enough jeans and ought to use this number for something else--like a new pair of summer sandals or that new watch I've been eyeing". Somehow my total yearly dollar amount has always been less than the amount I've more or less set aside when I use this method because I tend to buy a combination of high and low. My $25 plaid shirt from the sales rack at Zara and the $20 bracelet I bought at a craft fair offsets my $200 pair of boots. Maybe it's because cheating is harder when I can't "borrow" from upcoming months or find a way to rationalize that something is only half an item?

PalmFronds

Wow thank you ladies for all your input! And for sharing your experience and techniques-- it's not always easy to talk about money! You have all given me food for thought.
Angie you raise good points. I aim for that day when I am so happy with my wardrobe and when I can fully appreciate a higher end item without grinding my teeth because I did not save properly for it. Right now I am aiming to buy one or two great blazers this year but I am not sure I have the discipline to keep a steady hand and save for them.
Gaylene that is a very interesting approach, planning numbers of items instead of money spent. I never would have considered it but after reading your explanation I truly see the benefits of that approach.

This year might be the trial and error year for attempting budget/fashion planning. I am trying to figure out first when I TEND to spend most so I can automatically budget more towards those times as a start.

Alassë

Veteran

This is a great thread with lots of helpful approaches. Thanks for starting it, PalmFronds. I'm trying a yearly/seasonal approach this year, but buying out of season makes it tricky to track.

Lyn D.

Veteran

I am budgeting per Season AND trying to keep the numbers down too.
I use an expense section at the back of my desk diary. It only has room for up to 12 items per season

Anonymous

I like a combination of Angie's and Gaylene's methods. I have found that I need to be encouraged to spend more on fewer items that I really love. Having a set number for a year or one in-one out policy makes me stop to think whether what I want to buy is worth it. I'm also pretty happy with my closet and don't need much. There must be a bit of King Midas in me too because I think withdrawing cash for a year's fashion purchases would help prevent me from emotional purchases except for some wonderful wildcard. I could physically see money going out or not.
Having a list to stay focused is also very helpful I find.

crutcher

Veteran

Budgeting for clothes?...What is that?...I absolutely do not understand this idea...Maybe I should google or look it up...Maybe I should try it...smile..

Anonymous

I have a monthly budget, but tend to spend a lot more in Fall and Winter, and practically nothing in Spring and Summer. I guess it's because my office is cold year 'round. It's not easy!

rachylou

Veteran

Is this a dumb question? But how do you save up for something, when stores seem to move things on and off the floor so fast? Or is it more a general saving kind of thing - like saving a $1000 for a pair of pants, whatever's out there when you go?

Laurinda

Veteran

I don't have much to spend from a really tight budget, just a bit of pin money to spend on anything for myself. I do keep track every month, but there isn't really much to keep track of. [On the bright side we never argue about money - after paying the bills and buying groceries there is nothing left to argue about ]

PalmFronds

Rachylou good question. I feel like although I try to keep running lists of " needs and wants" to budget for it comes down to stopping me from overspending. I want to get to where I do less of that and more of saving for the great blazers I would like, a great pair of premium denim jeans etc. Or save for an event like NAS-- I know Angie puts aside some of her budget specifically for that event.

Windchime

Veteran

I'm intrigued by Meredith's system, which has money allotted by season and also has the "wild card" pot. Last year I gave myself a set amount each month, but I'm starting to think budgeting per season makes more sense in my four-season climate. It would also make sense for me to spend more on winter since it's the longest season here. Hmmm...time to recrunch some numbers...

Meredith

Veteran

I'll mention that I am definitely still in the wardrobe building stage. I need volume, so I'm less concerned with aquiring than others on the forum who have more established closets. I think the reason my system works (for me) is that I took the time to identify my purchasing challenges/needs. I needed to buy more at the beginning of the season (because I didn't have enough from previous seasons for my wardrobe to be functional), and I wanted to build in a cushion to encourage pricier purchases and or allow me to pounce on a HEWI if I've already used the season's budget. If I wanted to minimize wardrobe churn or acquisition I might approach the process differently.

Anonymous

Have always done more of my shopping and budgeting seasonally in the past, but I've really tracked things the last year per wear, needs, etc and I think that I'm shifting to being more cognizant of what I need yearly in terms of wardrobe, shopping and budget. Cold winter items such as winter coats and boots are more expensive than other items and my clothing costs for then are higher. Some of my wardrobe is fairly consistent from year to year, eg: tee shirts, jeans and chinos, and in terms of cost, I'd just as soon catch some of the end of season sales to stock up on these items even if I don't get much wear out of them until the next year.

UmmLila (Lisa)

Veteran

No budget ... Hide receipts from spouse ... Hope accountant will think they are office supplies...

PalmFronds

Ha ha ha! Ummlila if you find a way to pass them off as office supplies please let me know so I can try it

Looks like many of us are still experimenting to find the best way, but I love hearing the various approaches. The hybrid approaches seem flexible enough to change up a bit if necessary.

I was thinking I would crunch the numbers and figure out the entire "pot", and start a wish-list with maybe some estimates of what I expect/want to pay for those items. If I can focus season-wise on those items then hopefully I will use that budget wiser than I have been. During my pregnancy I did pretty well, buying what I wanted on a list I made and using those items ALOT.I did still end up with a few items I did not use as much as I hoped, but not nearly as bad as my non-pregnant wardrobe. So maybe listmaking AND tracking AND seasonal budget will work. Saving for NAS might b another goal of mine htis year because everytime it comes up I find myself rationalizing and buying too much or passing stuff up because I didn't plan for them.not good either way!

DonnaF

Veteran

I think 2015 will be my final year of wardrobe building, and at this point I need to build very little since in 2013 I bought 45 items, and in 2014 it was 47 items. Something in me wants to fight against having a dollar limit, but I think Gaylene's approach of limiting numbers will work for me. My goal is 24, or an average of two items per month, but I think 30 (or gulp!) 36 is more realistic. My *list*, however, does not include as many as 24 things.

Today I returned a pair of boots that was not on my list, although they fit and were comfortable which I've never found in tall boots; I just had to remind myself that I don't really wear tall boots -- and had just spent nearly $200 (grrrr, full price) on tall boots for DS who lives near Chicago. Victory!!!! I bought them when I was shopping with DS -- which is when I tend to buy unneeded items. But this week I also bought two items actually on my list -- so no more shopping this month if the internet purchase works.

LynneS

I do a spreadsheet for an entire year at a glance, after making a list of what I hope to purchase that year. I Include a category in my overall budget each month for "miscellaneous spending" that can be tapped for special purchases. Otherwise, if I overspend my clothing amount for the month, I have to find the money elsewhere. (And yes, there are some items worth eating Ramen noodles for...) I have a rule that the credit card has to be paid in full each month. It's not fun, but it prevents me from overspending: who wants to be still be paying off a winter coat six months later?

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