How much should you spend on clothing?
When it comes to clothes and shoes, it can be hard to gauge if you’re spending too much. Knowing the appropriate amount to spend for new apparels can help you get your finances in order and save more.
Most financial experts recommend setting aside 5 per cent of your income for a clothing budget. For example, if your annual take-home income amounts to $60,000, you can spend up to $250 on clothes every month or $3,000 for the whole year.
However, this number may vary depending on your lifestyle or priorities. Lauren Bowling of the Financial Diet recommends evaluating your finances, and going below 5 per cent if you are paying off your debts or have limited income. Once you are back in the black, indulging in shopping will be less of an issue.
Your love of fashion does not have to break the bank, either. According to Anuschka Rees, author of The Curated Closet, you can replace your habits of adding new items to your closet with other, equally satisfying activities. This may include doing clothes swap with friends and families, finding new ways to mix and match the clothes you already have, learning to sew your own clothes, trying out creative hobbies and more.
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