How Much Should You Really Be Spending on Clothes?

I try to make good financial decisions, but I also really really love fashion. Achieving a balance between the two can be oh, so tricky. Luckily there are some pretty good guidelines that I recently came across — so good, that these are definitely worth sharing.

It may be my post-soviet childhood in Russia, but I have grown up with the notion of shopping as something that you only do out of need — you need a pair of jeans, so you go and buy a pair of jeans (and you do not even notice those cute tops next to the jeans).

My problem is that I love shopping, I love trying on new styles, I love finding and putting together looks, so I have always felt incredibly guilty experiencing shopping as a fun process and spending money on something that I enjoy so much. Let me tell you this — you do not make smart financial decisions out of guilt. Of course, fashion can be fun, but it is also a necessity. There are however some pretty useful guidelines for achieving the balanice between the two; you can both enjoy the process and maintain your financial intelligence.

So how much should you spend on clothes?

The general rule is that you should spend 5% according to Dunn of your income on fashion related purchases.

This number can obviously vary depending how much you earn, the climate you live in, what you do for a living and your lifestyle.

Say your annual income is $50K plus super, this means that you will take home roughly $960 per week after tax, etc. (if you are lucky enough to not have student debt), so you ”should” be spending roughly $50 per week or $210 per month on clothes, shoes, etc.

Now how you spend this money will depend on your personal preferences — you could save up and splurge on an expensive handbag or a pair of boots or you could do smaller, but more regular shopping trips. The bottom line is that you should set that 5% aside (I highly recommend opening a second savings account with your bank) and only use these funds for fashion related purchases.

How to get the most out of your budget

My favourite saying is “I am too poor to buy cheap”.

The older I get, the more I am sick and tired of having to repurchase the same(or very similar) item over and over again, because the quality just does not last (yes, I’m looking at you Zara and Uniqlo). These days I choose to save up and spend $200 -$300 on a pair of jeans that will last me 3 years (I’m a big fan of the cost per wear rationalization of many purchases).

If I can buy something second hand I will.

A good tip is once you’ve settled on the precise brand and style of an item that you are looking for, check if you can find it second hand instead — often people will sell barely worn clothes on places like Facebook Marketplace, eBay and DePop.

Finally, just because I can afford something doesn’t mean that you should buy it.

Focus on buying the pieces that you actually need that will have a longer lifespan and avoid buying on trend fast fashion that will end up in the landfill. Before buying I ask myself heather the purchase will actually benefit me in the long term and try to exercise self control if it will not.

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Lots of love,

Lena