Budget Clothing Spending

Video Transcript

"Hello, I'm Melissa Schenk and on behalf of Expert Village, today we're going to be learning how to organize your closet. In our final clip let's talk about considering your future spending. Now that you have organized your closet, you've gone through your clothes, you've perhaps taken some clothes, you've given them away, you've donated them, or you put them into consignment. Think about your future spending. Now, the rule of thumb is that we're suppose to be spending 5% of our income on clothes. Kind of the rule of thumb. Yet again you don't have to follow this, you might be above or below this, or you might not spend a lot on your clothing. You might love what you got in your closet. That's just sort of rule of thumb. But, something to keep in mind when you are assessing your clothes and the amount of money that you're spending on your clothes, think about this for a moment; if you let's say have a jacket and you've spent $400 on this jacket, but you're thinking wow, it was $400. Think about how many times you're going to wear that jacket. Is it for business? Is it for work? If you indeed spent $400 on that jacket, but you wear it 5 times a month, 12 months of the year, well if you divide that up and do the math, really you're making an investment of it costing about $6.60 per time that you've worn it. So you're really making a good use of that piece of clothing and it was a good investment. So sometimes those really expensive items are a very good investment. You have to think about that when you're buying that item. Something else, rather it be let's say a really expensive dress, but you're only going to wear it 2 times, you're not getting the same kind of investment as you were on that $400 jacket. So just a couple of things to think about in your future spending."