I have an addiction, and the temptation to fall prey to it is all around me. Shiny, silky, stretchy, pleated, and bright—clothes. My name is What2Wear, and I am a shopaholic.
Unfortunately, my I-just-graduated-from-college budget does not go well with my need for new threads for every oh-so-special event that my social calendar is filled up with. So what’s a girl to do? Below I’ve outlined a plan of attack for all those women out there who suffer from this credit-crippling addiction.
Develop a fashion philosophy
Everyone wants to look stylish, but that comes at a price. What kind of fashionista do you wanna be?
Girl with many clothes…and maxed out credit cards: Women, take note. It’s great to go shopping frequently to look your best, but maxing out your credit cards is not the way to do it. You may look cute now, but you won’t when you see your credit score. Remember, you credit score affects everything you do. Here are a few examples:
Getting a job: some companies do a credit check on their job applicants
Getting a Car/Apartment/House: ’nuff said.
Dating/Getting Married: No one wants to be with someone in credit card debt, not a good look.
So before you take half your paycheck and head to the mall, take a minute to think about this:
1. Do you have enough savings to last you three to six months (if you were to lose your job or for general emergencies)?
2. Do you regularly invest for your retirement?
3. Do you owe any of your loved ones money?
I know this sounds crazy, but having good financial habits now is more important than getting those new Marc Jacob shoes.
Fashionista meets Suze Orman: This woman knows how to work her style savvy on a budget that she sticks to. So she’s got money in the bank and a trendy wardrobe, too. Sounds impossible? Not really. With a good budget and discipline, you too can be, as Lil Webbie put it, I-N-D-E-P-E-N-D-E-N-T.
I’m striving to be the fashionista/Suze Orman hybrid, and here are some things that have helped me so far:
Say NO to plastic: Most people have heard that people should not apply for or use store credit cards because of high interest rates, increased debt and lower credit scores as a result of frequent shopping trips.
I say people should not use ANY credit card to shop. In fact, if you are a true shopaholic like me, I suggest not even using a debit card to pay for clothes, because you might end up with an overdraft if you don’t budget properly. Save yourself pain and embarrassment by budgeting how much you will spend on clothes each week, and take only that amount of cash with you when you shop. That way, you can’t go over your budget, overdraw your account, and you’ll never have to worry about the extra $40 or so a month you waste paying interest on a credit card.
Learn and follow the art of budgeting:
When you notice that something you want is one sale, do you:
a) rush in and buy it, and another sale item, too
b) quickly check how much you have left on your credit card, then rush in and buy it
c) borrow money from your friend to buy it
d) realize it’s not in your budget and move on
Clearly, d. is the answer to the question, but very few of us can actually walk away from a good sale. So my advice is…don’t. That’s right, DO NOT walk away from a sale, buy what you want, BUT, here’s how you do it:
1. Depending on your salary, take a few weeks or months to save money specifically for shopping during sales or emergency needs, like a shirt you like that’s 50% off, or a new dress for a date.
2. During this time, decrease the budget for shopping by at least 70% (so, if your normal budget put aside $100 for biweekly shopping, you now can only spend $30).
3. After you get a good amount of money in there (I’d say at least in the hundreds range), keep the money in a separate account and ONLY during a random sale, at your discretion. And continue to a lot a part of your budget for shopping, apart from this separate account, so that you have this for-emergencies-only shopping account in reserve.
Get your staples
I just graduated from college. I’m about to start working, and I realized that I need all of these new clothes and accessories to transition into the new, grown-up world. I also have to save up to move into a new apartment. My solution? Get the staples for my wardrobe, and the rest later.
Staples are usually more expensive than your everyday shopping run. Some examples of my wish list staples include this Longchamp bag, for the essential work purse, and these sunglasses, which I can wear on a daily basis.
Staples will last you years, but can put a serious dent in your wallet. I suggest working on getting most of your staples before moving on to more frivolous buys.
Try making a prioritized list of all the staples you need, and make a long-term budget to make sure you get most of the items on your list by a pre-determined deadline. Then, and only then, should you go back to random weekend shopping.
Shop Alone/Call on a friend
Whenever I’m tempted to go over my fashion budget, I call one of my friends for advice. Not the ones who have the same shopaholic tendencies I have, but the ones who are financially responsible and secure. After talking with one of those friends, it’s hard to pick up that cute dress when they are reminding you of the last time you overdrew your account because of random shopping.
If you don’t like to put your business out there, try shopping alone. This tactic is great for people who have friends with the same bad financial habits.
Happy shopping…and saving!