| It's a question that I receive from time-to-time | | | | clothe goesup, the amount to spend per body |
| frompeople trying to get a handle on their | | | | goes down. |
| clothingexpenses. Whether you have a lot to | | | | Now while your teenager (or pre-teen) will no |
| spend or a wholelot less than you'd like, there are | | | | doubtargue that she should be allocated the bulk |
| a couple of waysto go about figuring how much | | | | of thebudget to buy the status symbols of her |
| of your budget youshould be allocating to clothes. | | | | peer group,don't do it; the distribution should be |
| 1. The Historical Method | | | | based on eachperson's lifestyle requirements. Look |
| If you typically keep track of all of your | | | | at the wageearners' needs first, then work your |
| expenses byhand or by computer, you can | | | | way through eachperson in the family. |
| usually find this numberwith very little effort. | | | | So if Dad does computer programming for a |
| Simply tally the amountyou've spent by year for | | | | hospital,for example, Mom sells diamonds to |
| the last few years and seehow they compare to | | | | socialites, Junioris heavily involved in sports, and |
| each other. | | | | little Susie is thescholarly type who prefers books |
| If your spending habits are pretty predictable, | | | | to friends, then theallocation might goes as |
| theamounts will probably be similar for each year. | | | | follows: |
| Ifyou've had a job change that impacted your | | | | *Mom should spend the most (sells a high dollar |
| wardroberequirements (got a promotion, went to | | | | product) |
| uniforms, left | | | | *Then Junior (school clothes, sports gear and |
| Wall Street to start a goat farm in Vermont)-or | | | | uniforms) |
| had ateenager enter or exit your midst-you'll no | | | | *Then Dad (casual, low-profile work environment) |
| doubt seethe impact in your clothing expense | | | | *Then Susie (school clothes, a few casual clothes) |
| history. | | | | Make sense? Determine the needs per person, |
| Simply determine how long the impact will be felt | | | | thenallocate accordingly. |
| (from here on out, for three more years, etc.) | | | | Whatever you do, don't scrimp on your own |
| andadjust the rest of your budget accordingly. If | | | | wardrobe todress your kids "to the nines." While |
| thenumber seems high or low in proportion to the | | | | this is commonpractice in a lot of families, it's |
| rest ofyour income and expenses, you may need | | | | counterproductive:the most money goes for the |
| to adjust yourspending habits to meet your | | | | clothes that are worn theleast and that have |
| business and image goals. | | | | fleeting impact, while the leastamount goes for |
| 2. The Percentage Method | | | | the clothes that are worn the longestand need to |
| For those of you who don't typically keep records | | | | have the greatest impact. |
| orwho want a more definitive answer, you may | | | | So knowing that the more polished you are, the |
| want tolook at the percentage method. | | | | moremoney you make and the less polished you |
| The percentage method is where you allocate a | | | | are, the lessmoney you make, don't sacrifice your |
| certainpercentage of your income to specific | | | | own image goalsto buy expensive clothes for |
| expenses. | | | | your kids that they'lloutgrow in six months. |
| Because these can vary wildly depending on | | | | Instead, put your own needs asthe wage earner |
| yourmarital and dependent status, work | | | | first, increase your income, andyou'll have more |
| environment, localcost of living, etc., use these AS | | | | money to spend on clothes foreveryone. Make |
| GUIDELINES forforming your budget, then adjust | | | | sense? |
| as necessary for yourparticular situation: | | | | 3. Your Existing Debt Load |
| Housing: 20-35% | | | | Now this whole spending plan assumes that you |
| Taxes: 15-35% | | | | operateyour household on a cash basis, meaning |
| Food: 15-35% | | | | NO DEBT. Ifyou're carrying a lot of debt-or even |
| Clothing: 3-10% | | | | a little-beyondyour mortgage or car note, then |
| Transportation: 6-20% | | | | you need to reduceyour expenses to bare-bones |
| Entertainment: 2-6% | | | | minimum until you'vesatisfied your creditors first. |
| Savings: 5-9% | | | | So if you're still paying off last year's fallwardrobe |
| Miscellaneous: varies | | | | or that spending spree you went on after |
| Now before you use this as a permission slip of | | | | youbroke up with Mr. Wrong, don't add to your |
| sortsto head to your favorite store to spend | | | | strappedfinances by assuming that these spending |
| 10% of thisyear's salary on clothes, there are a | | | | percentagesare etched in stone. They're not. |
| couple of thingsyou need to keep in mind: | | | | Spend low while youpound away at the debt, then |
| 1. Your Lifestyle | | | | re-adjust as necessaryonce you're back in the |
| If you wear a uniform to work, work at home or | | | | black. |
| in acasual environment, are retired or are getting | | | | So what's the bottom line? |
| readyto retire, you can probably get by on a | | | | If you commit yourself to staying within your |
| 3-5% clothingbudget (or less). | | | | budget,you'll spend less, make wiser clothing |
| If you are regularly photographed, are a | | | | purchases,teach your kids how to handle money |
| publicofficial, speak, consult, or charge a lot of | | | | appropriately, ANDbe able to sufficiently fund your |
| money foryour products or services, you will | | | | retirement to dresswell for years to come. |
| need to spend moreon your wardrobe, typically | | | | So how much money should you be spending on |
| 7-10%. | | | | clothes? |
| 2. The Needs of Each Dependent | | | | Enough to help you look good, feel good, boost |
| If you are married and raising children, you'll | | | | yourincome, and meet your financial goals. No |
| needto spread the budget between everyone in | | | | more, noless. |
| thehousehold. So as the number of bodies to | | | | |