balance your wardobe with your wallet

I admit it... this month I went a little shopping crazy. Although I have started a new rule for myself, I've decided to set a clothing budget so that I don't overspend with these awesome seasonal deals. (My new rule is a piece of clothing out of my closet for every new piece I buy). Although shopping the clearance racks, using coupons, and waiting for sales will get you more for your money, it's important to actually set a budget for yourself because you can still overspend. There are tons of reasons for setting a budget for yourself in general, but I think probably one of the most important reasons to set a monthly limit on fashion is that it eliminates buyers remorse. Having a finite amount of money to spend on clothing will also force you to make purchases that are necessary and that you really love.

Before you can set your spending limit, you need to figure out how much money you net monthly and how much your reoccurring expenses are. Once you have subtracted your expense from your monthly earning, see if you have a reasonable amount of money to be shopping :) Make sure to evaluate this against your financial goals, what you consider valuable to spend your money on (i.e. traveling), and your shopping habits. Most financial advisers recommend allocating about 4-6% of your salary to clothing because this is a necessity, but for me realistically it's about 10% my salary split seasonally.

The most important thing about setting a budget is keeping it! You will be happier with your purchase and your wallet will be happier. Here are some tips:

• Keep yourself accountable by logging your purchases or using something like mint.com
• Just because you have a budget doesn't mean you have to use all of it. If you have leftover, carry it over to your next shopping trip or put it in your savings account
• Return overages or take it out of the next shopping budget