Pema Bakshi* shares her secrets on how to save money when you really, really like to shop.
For a long time, I had resigned myself to the idea that I would never be great with money.
Why? Because I like shopping too much.
I even remember watching Confessions of a Shopaholic and thinking I could relate despite having zero credit card debt, let alone the amount Rebecca Bloomwood had.
And it’s not just us fashion tragics that feel the pressure to cut down drastically on our spending in order to be deemed ‘good with money’.
Looking through financial columns and money-saving tips, most of what we see doesn’t even account for the spending habits of regular people, let alone those of us who’d happily save up and splash out upwards of $1,000 on a designer item.
But personal finance is exactly that: personal.
It’s about managing what you earn and ensuring that your hard-earned dollars are spent wisely.
Not living as frugally as possible to maximise savings, but budgeting for your lifestyle.
Shopping isn’t inherently wicked, but you might need to actively account for your predilections when budgeting.
There is such a thing as healthy spending, and it’s a good idea to shift your thinking to be more realistic, so you can avoid any impulse buys or the dreaded ‘withdrawer’s guilt’.
Ultimately, shopping and spending aren’t mutually exclusive, and being ‘good with money’ means something different to everyone.
As someone who relishes in a new purchase, I know that cutting out spending altogether isn’t realistic for me, but that doesn’t make me financially unfit, nor does it mean I’ll never be able to own property one day (well, maybe not in this economy but you get the idea).
Click through for the best shopping advice we’ve heard, to ensure that our shopping doesn’t spiral into Bloomwood territory.
Resell, resell, resell
If you’re someone that’s always ready to welcome things into your wardrobe, you should also be prepared to let go of some of them.
Not in a one-and-done kind of way, but that top you once loved that you haven’t touched in a couple of years is only going down in value (or even growing mould) in the back of your wardrobe, when it could be making someone else happy — and making you money!
The key here is to take good care of your items, always thinking about their potential resale value.
With sites like TheRealReal, eBay and Vestiare Collective making it all too easy, it’s a great way to ensure that your consumption is contributing to the circular fashion movement.
Say hello to a ‘joy’ bucket
We all have different salaries and expenses, but one thing we’ve learned from years of tearing ourselves down over our spending is that trying to over-save is a thing.
And it usually results in plenty of transferring between accounts, losing track, and, ultimately, guilt.
The reality is that if you’re someone who enjoys shopping, this needs to be accounted for when you’re budgeting.
The amount will vary depending on pay/lifestyle factors, but a general rule of thumb here is to put aside a portion, around 5-10 per cent of your take-home pay, towards a ‘joy’ bucket — a pool of savings that you dip into for those unnecessary (but also very necessary) purchases.
It’s important to set a specific amount that you are comfortable spending on clothes, etc.
And when we say ‘comfortable’ we do mean within the confines of your overall expenses.
This way, if you’re after a particular investment item, you may not have to hesitate to buy it as long as you’re prepared to not purchase any smaller-ticket items that month.
Or, vice versa.
Naturally, as with any type of budget, the key is to actually stick with it, so if you’re not honest with yourself, it’s not going to work.
Even if you’re someone that’s keen on budgeting, it’s essential to note how much money you have regularly coming in and out.
There is a stark difference between how much money you have and what you can afford.
You may have $1,000 in your bank account but that doesn’t mean you can afford $900 shoes.
It sounds simple, but drilling this into your mind is important.
Only after rent, bills, groceries, entertainment and other expenses are accounted for can you really get a picture of just how much of your income is disposable.
Cheaper isn’t always cheaper
How many of us have blown through small fortunes on similar-but-not-quite-the-same items when we would’ve been happier (and financially better off) with the higher-quality version?
The old adage, ‘buy once, buy well’ holds true for many things, but particularly pieces you know will have longevity and higher cost per wear.
Plus, investment pieces can also have higher resale potential.
Take a little trip into the archives of consignment shops to suss out the resell value of different brands and styles to understand how investment purchases can maintain their value — or even make you money over time.
Sit. On. It.
The common advice you hate to hear but it really is worthwhile.
This doesn’t just apply to bigger purchases, either.
Sure, smaller items may sell out faster, but we’re firm believers in taking at least 24 hours to think about a purchase before biting the bullet.
In those hours, we recommend picturing how the item sits with the rest of your wardrobe — yes, those metallic pants looked incredible on that blogger, but do they suit your otherwise minimal wardrobe, and do you have occasion to wear them? If the only place you’re going right now is to the shops and back, your money may be better spent on non-club attire.
Another point to take into consideration is how often you can picture wearing an item.
Versatile shoes and bags are a bit easier to justify, but clothes can be a bit trickier.
For everyday items of clothing, the golden number is 30.
Are you happy to wear the item at least 30 times? If so, it has the potential to be a new love.
For occasional wear, we’re all for including a few dressy pieces into a modern capsule wardrobe, but you may want to spend a little extra time on this so that you can be certain it’s not just a trend you’ll be over after just a couple of wears.
Mates’ rates
This isn’t for everyone, and definitely not on the cards while we’re in lockdown, but borrowing clothes can be particularly useful when planning for events.
After all, how many of us have scrambled last minute for a formal dress the day before an event, only to splash out on express shipping for a pricey dress we’ll never get the mileage we want out of?
And, since we all have events that were disrupted by the pandemic, there’s likely an array of stunning looks that are waiting to get their day in the sun.
It should be noted that there’s a host of politics and etiquette surrounding borrowing, and it’s important to always be a mindful borrower.
Take care of the item, be careful with food and drink spills, dry clean if possible, and return promptly with a dinner voucher for their trouble.
Also, even your closest friend may not be comfortable lending out their favourite dress and that’s completely fair.
Accept the rejection gracefully, as it’s probably not a personal indictment of your inability to take care of a cactus, let alone a one-of-a-kind dress.
Thrift, but with caution
We’re suckers for a thrift find.
But while thrifting is a great way to spend sustainably, if we’re consuming exorbitant amounts of items just because they’re cheaper, those prices not only start to rack up considerably, but we kind of miss the point of circular fashion altogether.
Remember: You’re still looking for what you need, not just what’s cheap and may be useful if you ever get around to hosting that very belated Gatsby-themed soirée.
Stretch your funds elsewhere
If you know that spending less on clothes and beauty products just isn’t going to happen, look for other ways to save.
There are plenty of small cost-cutting methods that add up and make a difference in the long run.
Some of our go-tos for both saving and earning more include splitting the bill for streaming and food delivery services with friends and family, cheap meal prepping, cutting down on rideshare services, and even looking at ways to invest our funds so that they essentially help to cancel out our spending — that makes sense, right?
Take advantage of sales, don’t let sales take advantage of you
It goes without saying that savvy shoppers know how to hunt down a bargain.
Our editors make sure to stay on top of reduced items by marking our calendars for major sales days, particularly around clearances like EOFY and Boxing Day that can see us save up to 75 per cent off of items that are usually out of our price range.
Sites like The Outnet and The Archive Place are also great to keep track of designer fashion at a bargain.
And if you’re not someone that has the time to keep up with these sites or wait for sales, there are also apps like Honey that quietly scour the Internet for working promo codes.
With over 28,000 merchants attached to the service, it takes the legwork out of sourcing discounts.
That said, it’s easy to get swept up in the urgency of a sale and the barrage of emails that come with it.
Word to the wise: bulk sales, the kind where the savings go up as you spend (e.g. ‘Spend $100, save 10 per cent, spend $200, save 15 per cent) and other packages like minimum spend for free shipping can all too easily fool us into buying more than we need, ultimately defeating the point of saving through sales.
*Pema Bakshi is a contributor at Refinery29.
This article first appeared at refinery29.com.
