Practical tips to help you stop spending too much money on clothes

It is human nature to desire beautiful things, and for many, clothing plays an important role in expressing their identity. According to a report by the Bureau of Labor Statistics, the average American spends about 3.8% of their income on clothing. But there’s a fine line between what we need and what we overspend on. If you often spend more on clothes than you can afford, here are eight practical tips to help you keep this habit in check.

The first tip is to set up a budget specifically for clothing. The 50/30/20 rule, coined by Elizabeth Warren, states that you should spend 50% of your income on necessities, 30% on wants, and save the remaining 20%. This rule could be a good starting point. Applying this rule to your after-tax income will give you a clear idea of how much you should spend on clothing (which is included in the 30% for necessities) without compromising your basic expenses and savings.

Secondly, consider buying second-hand or from discount stores. This approach not only reduces your clothing expenses, but also contributes to sustainable fashion by giving second-hand clothing a new lease of life. “Buy less, choose well, make it last,” as British fashion designer Vivienne Westwood said, underscores the importance of making conscious decisions when shopping. With the rise of online stores for secondhand clothing such as Depop, ThredUp, and The RealReal, secondhand shopping has become easier and more affordable than ever before.

Thirdly, unsubscribe from fashion newsletters. Retailers often entice their customers with newsletters showcasing new collections, sales, and exclusive offers. This marketing tactic can lead you to buy clothes you don’t necessarily need. If you stop receiving these newsletters, you won’t be tempted to make impulse purchases.

Finally, create a versatile wardrobe. A wardrobe full of clothes that can be mixed and matched will save you the trouble of buying new clothes for different occasions. Investing in timeless, high-quality pieces will save you money in the long run. As the famous fashion icon Coco Chanel once said, “Fashion changes, but style remains.”

How to apply these tips in practice

Understanding the theory is one thing, but putting these tips into practice can be challenging. Successfully curbing excessive spending on clothing requires conscious effort and discipline.

Start by tracking your ongoing clothing expenses. You can use an app or simply a spreadsheet to record your spending. This process will help you understand your shopping habits and identify areas where you tend to overspend. Once you know where your money is going, it will be easier to make the necessary adjustments.

Once you have tracked your spending, use the 50/30/20 rule to set a budget for clothing expenses. It is important to set a realistic budget. Remember that the goal is not to completely restrict clothing spending, but to manage it so that it does not jeopardize your financial health.

Next, you should check out second-hand stores or discount stores. It may take a while to get used to this shopping habit, but the savings you make and the unique pieces you find can be very rewarding. To avoid temptation, you should also take the time to unsubscribe from fashion newsletters from brands you frequently shop at.

Finally, you should build a versatile wardrobe. Choose basic items that can serve as the foundation of your wardrobe, such as a good pair of jeans, a black blazer, or a white shirt. Once you have these basics, you can add a few trendy pieces to keep your wardrobe fresh.

Applying these tips will not lead to change overnight, but with time and consistency, you will notice a positive change in your spending habits and your account balance.