Fashionistas who love budgets?
Can we love to shop and keep our eyes on our spending too? YES ABSOLUTELY!
I strongly believe in the beauty of having a well managed fashionista spending budget, because I’ve spent a load of years wobbling between loving investing and racking up credit card bills on stuff I don’t need. This handy little article shares some valuable things I’ve learned from that process, including:
- Buying too much stuff
- Being intimidated by money
- Ignoring pressure from society
- Wasting money buying things new
Below are ideas to address- and solutions to deal with- all of the above! Lets get to it.
1. Buying too much stuff gets frustrating.
First world problems, right? But think about how much you own? Do you really need all of it? Do any of us need/wear/use all the stuff we have? The answer is likely to be no. We don’t need so much stuff.
But we can keep digging little financial holes to buy more because we’re encouraged to do so – by advertising, culture, peers and life in general.
Sometimes it can even cause us stress – making us wish we could simplify our wardrobes or feel overwhelmed by all the stuff. Relief might feel as easy (but tough) as taking steps to clear out your wardrobe.
Ideally we elegantessa’s would dress like millionaires (even when on a budget) and make extremely efficient clothing choices like this 20 Item Wardrobe, but in reality our buying and budget can wobble a little (or a lot) while we master our money management.
This is simple to address but complex to unravel – ask what we truly get joy out of?
And what we could spend less on? Loving that morning starbucks is some peoples thing. Shoes or bags are others spending joy. Some people love fancy dinners, or travel or jewellery.
List items by joy priority and see if you’re spending accordingly.
You might be surprised to find you’re spending a lot on things you don’t love.
I’m personally obsessed with Loewe Amazona bags and was wasting cash on random bags until Mme. Birkin told me to stop it and start buying only my dream bags. I made a list and stuck to it, saving myself thousands in frittered spending despite the Amazona’s being more expensive!
Sometimes we leak our cash away in the small purchases, instead of exercising our discipline muscle and WAITING for the RIGHT purchases.
Let’s list our really big happy spending items and focus on whether we’re going to spend a dollar on our joy priorities, or waste it elsewhere?
One of my fave money mindset teachers is Dave Ramsey, who loves buying fun cars and making money management easy. Check him out if you want some steady guidance on escaping debt, building wealth, healthy boundaries and positive money ideas.
2. Being intimidated by money
It’s easy to feel scared of money and money management, trying to ignore it or hoping someone else will come along and do it for us. But this will only ever lead to stress and lack of confidence around money. You’ll hear this manifested most often in the deadly and helpless phrase :
“I’m not good with money.”
Actually that’s not true. What might be true is that you’re unsure how to deal with money, probably because you’ve never been taught. It’s not an innate skill like walking or eating. Some people still can’t ride bicycles or swim because they’ve never learned. It’s the same with money.
You’ll also hear :
I was always bad at math OR
I’m so bad with numbers.
If you say any of these terrible phrases, STOP IT.
Ask how the above video of counting money makes you feel? Nervous? Happy? Nothing? Does that reveal how you feel about money?
You might make bad choices with your money, but that doesn’t make you stuck in some bad money vortex for life. You don’t have to be an olympic athlete of numbers – you can count to 100 and that’s all you need!
These phrases are often an easy excuse for not learning how to control your money. Below is a little pie chart tip on how simple managing money can be. And again, Dave Ramsey offers good guidance for those who are a bit scared by money, so if that’s you then check him out.
You’d be surprised how fast you can improve money habits when you let go of being scared of them.
Often money can seem intimidating due to there being fewer conversations about basic money management than there is advertising to spend money, which baffles me because financial literacy is such an important area.
Below is a pie chart of simple monthly management technique that’s a great starting point for making sure you’re in the right zone before you start allocating part of your 30% splash cash on fashion (or what you love).
The word BUDGET is a BLESSING – giving you CONTROL of your life!!
Below is the simplest money management budget I’ve seen. Write all your numbers (roughly is ok) by either category of LIFE NECESSITY (essential water, food, shelter, survival basics) or WANT SPENDING (personal fun, activities, shopping, eating out, indulgences).
If your numbers don’t fit into the boxes, you can see you’re spending beyond your means, so consider changing mindset to downsize now so you can be wealthy later – probably sooner than you think. It’s very possible, but not if you spend it all on rubbish today. And this definitely needs to be done on paper or a spreadsheet if that’s your thing. I just scribble stuff on a notepad. Give it a try! Maybe you want that bag from a luxury reseller instead of Starbucks every morning… you can work it out with this 50/30/20 process below, and have savings and personal splash cash, stress free.
3. Ignoring society pressure
If you feel pressure to have more more more, that’s perfectly normal in our current society.
At some point business took over our streets and advertising with it – meaning everywhere we look, we see something to buy. Therefore the way to de-stress from the neediness is to take a breath, step back, and ask what you actually need and what you think you need because… bla bla bla.
Do you NEED it? Or is society telling you to think you do? Time to make your own choices…
Usually what you think you need has a reason attached to it, while necessities don’t. Most people won’t say ‘Oh we need to keep the water running because otherwise we won’t be able to shower…” or give reasons for replacing an appliance that has completely died or is dangerous, but they will list off reasons for why they need a shiny new microwave/pair of shoes/bigger fridge/nicer couch/evening out/party at friends/attend that wedding bla bla bla. If it’s got reasoning attached, it’s probably not a vital necessity. You may want to keep it around, but it doesn’t need to have the same importance that necessities do.
Society will make stuff seem way too glamorous. But it can weigh us down.
Not just in stress from a crowded wardrobe or clutter, but in potential consumer debt, a cycle of always feeling the need for more, compulsive shopping or spending unnecessarily.
Your brain feels pain when you part with actual cash for a reason – so make sure you pay in cash more often and cut back on the easy ways society (and credit cards/ loans/ apple pay/ financing etc) make it for us to waste cash on things they want us to buy… but we probably don’t need!! That’s your future wealth you’re spending! Choose yourself & your wealth over their sales pitch.
4. Wasting money buying things new
As you’ll hear Dave Ramsey repeatedly say, wealthy people don’t buy everything new because they know many items devalue as soon as they’re taken home. Especially cars! So if you’re buying fashion brand new, consider whether you might find better deals (and be a little more eco-friendly) buying pre-owed items from luxury resellers or ebay in great condition.
Or you can find companies that have recycling discounts – like H&M‘s global recycling program where you can bring any used clothing into H&M stores to receive 15% off your entire purchase. (You might need to check on this discount in your country!) and apparently if you return six empty product containers to MAC Cosmetics to be recycled, you will receive a free MAC lipstick of your choice. (Check this in your country too!)
As you see from the luxury reseller affiliate ads around the site (where designer goods are up to 90% off), I’m a big advocate of this concept – because I ADORE savings and I feel good knowing I’ve made a positive choice about where my money is going. Feeling a little more in control of money is really just made up of decisions like that.
Managing money is just a series of little decisions. And knowing why you’re making them.
Once you know what you’re spending, on which items and WHY, you’re in a great place to feel more confident and be able to allocate splash cash towards life or fashion, buying great quality items that you love – instead of feeling suffocated under stuff that might have become a bit of a burden.
Hopefully this has been helpful to fashionistas who are getting their finances in order, and I’ll have other fashion and finances articles on Cost Per Wear examples, the worlds best luxury resellers and why to avoid fast fashion. And of course some of my views on simple investing for fashionistas too, so subscribe for the monthly update!