How much should you spend on clothing? | Pete the Planner® (2024)

"You look like a million bucks!" - A friend of yours complimenting you on an outfit that you love.

Clothing, whether you like it or not, is a necessary evil. In order to walk out your front door, go to the grocery store, and go to your job, you need to hide your genitals. Laugh if you like, or stop reading if you are offended, but it's the truth. Clothing, from the very beginning, was to meant to cover your "areas." Some people feel compelled to do this with style and panache, while others choose to take a utilitarian approach. Neither approach is right or wrong; they are just different philosophies. This post is for those that enjoy looking nice. If you don't care, then you don't care. I'm not judging. You just don't care.

What you might not realize is that even if you care, you may not have the right to care. If you aren't in a financial position to care about clothing, then whether you actually care or not, is trumped by your inability to do anything about it. To some degree, this is the same way I feel about smoking, drinking, fine dining, or art. Arguably, they are all vices. Whereas clothing is more essential than tobacco usage and alcohol consumption, it's your financial stability, or lack thereof, that should truly guide your decisions on all accounts.

But I digress. Back to clothing.

Call me shallow and clueless, but I'm convinced that personal style is important. This doesn't mean that you have to spend like a moron to complete your look. I just think how you present yourself is very important, especially in a professional setting. Recently, Harris Interactive conducted a survey of more than 500 HR professionals. The survey revealed that 90% of HR pros believe being well groomed is key to making a strong first impression and setting yourself apart from less tidy competitors. When I see someone with cool shoes, cool glasses, or a nice dress, I don't think, "Wow, those are expensive." I think, "Wow, they care." I happen to think that your business/career wardrobe is an investment. But I think that you should plan your purchases wisely. This post will help you do that.

The Numbers

Pete the Planner's Ideal Household Budget allocates 5% of your household income to clothing. This is assuming that you live in a debt-free house. It's much much harder to allocate 5% of your income when you are still hypothetically paying for that great handbag that you bought last March. Here's what 5% of some different incomes looks like:

$40,000 gross is about $28,000 net. Clothing budget $1,400/yr

$60,000 gross is about $42,000 net. Clothing budget $2,100/yr

$100,000 gross is about $70,000 net. Clothing budget $3,500/yr

$150,000 gross is about $105,000 net. Clothing budget is $5,250/yr

How much should you spend on clothing? | Pete the Planner® (1)

How much should you spend on clothing? | Pete the Planner® (2)

What's included in the clothing budget?

Everything. Clothes for you. Clothes for your kids. Clothes for your spouse. Workout clothes. Work clothes. Casual clothes. Bridesmaid dresses. Rental tuxes. Dry cleaning. Clothing repairs. Shoes. Handbags. More shoes.

You may have been excited by the raw numbers, but the "what's included" section may have brought you back to earth. Like I was saying, this requires planning and forethought. The first step in my opinion? You MUST take care of your current clothing.

Tips for making clothing last longer

  1. Clean, polish, repair- Grandpa Dunn always said, "You will take care of your bike the way you take care of your car." He meant that you must take care of the things that you buy, no matter the cost.Do you launder your clothes correctly? Do you regularly clean shoes and bags? Do you repair shoes and clothes when they are broken? You should do all of these things. Don't treat your clothing poorly. You spend 5% of your budget on it!
  1. Add to your rotation- I used to have only one good suit. It was wearing out quickly because it was doing all the work. I bought another suit that helped split time with my original suit. This extended the shelf-life of the first suit and helped me maintain the new suit. I eventually added another suit, and so on and so forth. All of your suits don't have to be high end. Hell, none of them have to be high end. But you should probably read tip #3.
  1. Sometimes quality matters- Some clothes are crap. This isn't me being a jerk. This is me being a realist. Some clothes look great but are made poorly. They will get you by in a pinch. Sometimes it makes sense (when your budget calls for it) to buy business formalwear from a "warehouse" type store. However, I believe that you can get more use and better effect from a nice clothing store. I like to support the local designers in my town. One of my favorite places for high-quality clothing at great prices is J Benzal. (Check 'em out. They have a great online store.)

Starting from scratch can be intimidating

Let's say that you are starting your first job. Or better yet, let's say that you decide that you want to kick up your style a notch. How should you get started? Can a person making $40,000 actually build a wardrobe? It takes strategy. That's why I'm called Pete the Planner. I plan EVERYTHING.

Cheap, good looking stuff is the key. Some of my favorite stores, for men and/or women, are Uniqlo, H&M, and Gilt. Make a list of things that you need, and then use sales to your advantage. Buying things on sale is great when you actually need what you are buying. For gents, you need one or two suits, five dress shirts, five to seven ties, a pair of khakis, a pair of black pants, a pair of brown shoes, a pair of black shoes, a brown belt, and a black belt. That's it. That's all you need to get your wardrobe started. Ladies....I'm not even going there. However, I would love for you to leave comments on what you find to be the equivalent of the men's list above. What are the essentials?

The bottom line is that you need to plan your clothing purchases. If you need to spend more than 5% of your take-home pay, then cool. Just spend less on some other budget category.

Final thoughts and tips

How much should you spend on clothing? | Pete the Planner® (3)

I spoke with Nikki Sutton (left), interior designer and fashion advocate, she is easily one of the most stylish people that I know. But while her look is distinct and powerful, it doesn't scream "I just dropped thousands of dollars on clothes."

She feels quite strongly about clothing's role in her career, "My outfits influence how I feel about myself, how others perceive me and most importantly, provide me a daily opportunity to be creative, to succeed and to fail. I think of my clothing purchases as investments in my personal brand."

She's right. Caring about how you look is important. It's not vain. And it's not stupid if you do it within your budget. Nikki shops on a budget, "That sweater may have only cost $20 however, by NOT buying it, I mentally reserve that $20 to put towards a pair of bada$$ shoes I simply can not live without. Actually, I weigh everything I buy against the latest pair of shoes I can't afford: If I don't go out to eat tonight, that's $30 I could put towards something I have been wanting." That's just smart. The Pete the Planner Ideal Household Budget encourages you to move the pie pieces around. Make choices. Don't just say yes to everything.

Bonus tip: Buy clothes that fit. A well-fitting, tailored suit, shirt or pair of pants can make all the difference in the world. Clothes that fit don't cost you more money. And if you can't find something that fits the way it should, then find a good tailor. Many dry cleaning places will tailor your clothing for a reasonable price.

The main takeaway is simple: don't ignore this seemingly simple budget category. Although clothing should only account for about 5% of your budget, it's quite a challenging process to make sure that you arrive at that 5% safely.

How much should you spend on clothing? | Pete the Planner® (2024)

FAQs

How much should you spend on clothing? | Pete the Planner®? ›

Although clothing should only account for about 5% of your budget, it's quite a challenging process to make sure that you arrive at that 5% safely.

How much should you spend for clothing? ›

How Much Should You Spend on Clothes? Most financial experts say to keep clothing spend to around 5% of your take-home pay for the entire family. So, take whatever your monthly pay is and multiply it by . 05 and that is the MAX you should spend in a given month.

How much does the average family of 4 spend on clothes? ›

Average Monthly Cost Clothing For Various Family Size
1$67.08
2$135.58
3$189.25
4$213.92
4 more rows

How do you determine your budget for clothes? ›

According to Dunn, you should spend 5% of your monthly income on clothing. To find the exact dollar amount you should be spending per month, multiply your take-home pay by 0.05. For example, if your monthly take-home pay is $3000, you should spend around $150 per month on clothing.

Why should you spend money on clothes? ›

You'll Get More Use Out of Them

You'll also spend less time wondering what to wear. Having a core wardrobe on hand is the key to looking great. If you've ever noticed models and fashion editors' wardrobes, I think you'd find that, for the most part, they all stick to fairly simple, but quality pieces.

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What is a reasonable amount of clothing? ›

Research on How Many Clothes We Need

According to a report referenced by Vogue in 2022 that leans on sustainability goals, “The researchers found that a “sufficient” wardrobe consists of 74 garments and 20 outfits in total.

How many clothes does the average person own? ›

People own an average of 148 pieces

Most survey respondents seem to have between 77 to 155 pieces in their wardrobe with a few outliers in the 300+ range.

How much does the average girl spend on clothes a year? ›

According to the research, women and girls spend an average of $545 per year on clothing, while men and boys spend just $326. Footwear costs the average household $314, while clothes for children under two comes in at $68. That comes to a total of $1,434 each year on clothes -- or about $120 a month.

How much do low income families spend on clothes? ›

The lowest income households spend about $850 per year on clothing, or about 3.9% of total annual expenditures. Likewise, the amount spent on clothing and apparel does not differ much for married couples with children (3.6%) compared to single-adult households (3.5%).

How do I calculate my clothing cost? ›

For example, you start with a cost price of the garment which is the sum of all of your manufacturing costs. You then multiply this by 2 to get your wholesale price. Then you multiply the wholesale price by 2 (and up to 2.5 to cover taxes) to get your retail price.

How to use cheap clothes look expensive? ›

How to make your outfit look more expensive
  1. Get it tailored. Raymond Hall//Getty Images. ...
  2. Wear a belt for polish. Daniel Zuchnik//Getty Images. ...
  3. Add gold accessories. ...
  4. Dress in tonal colours, like all white or all black. ...
  5. Keep handbags shiny and clean. ...
  6. Layer up. ...
  7. Dress up your denim. ...
  8. Buy timeless outerwear.
Jan 18, 2023

How to track cost per wear? ›

To calculate the cost per wear of an item, divide its price tag by the number of times you're planning to wear it/you've worn it. For example, one year ago you purchased our smart chinos for €120, and you've worn them 30 times.

What is a good amount to spend on clothes? ›

The main takeaway is simple: don't ignore this seemingly simple budget category. Although clothing should only account for about 5% of your budget, it's quite a challenging process to make sure that you arrive at that 5% safely.

Should I buy cheap or expensive clothes? ›

With fabrics, you generally get what you pay for. Cheap fabric will lose its shape more quickly and twist, shrink excessively, stretch out, or pill up if you wash or wear it a few times. Fabric has a big effect on the fit of a garment and if the fabric quality, look, and feel don't hold up, the fit will change.

How do I not spend all my money on clothes? ›

Try using these tips to save more money on clothes every year!
  1. Only buy items that fill a gap in your wardrobe. ...
  2. Follow the 1 in, 1 out rule. ...
  3. Shop at thrift stores. ...
  4. Buy quality over quantity. ...
  5. Swap with friends, family or community. ...
  6. Repair Your Clothes. ...
  7. Do Your Laundry Properly. ...
  8. Buy Off-Season.
Sep 9, 2023

How much does the average person own in clothing? ›

Most survey respondents seem to have between 77 to 155 pieces in their wardrobe with a few outliers in the 300+ range. Again, I believe the survey data I collected skews a bit lower than what the 'true' average is for most people. Total number of clothing and shoes people own based on survey data collected.

How much should I take off for clothes? ›

The authors concluded that women can subtract 1.75 pounds and men can subtract 2.5 pounds for their clothing (without shoes). So next time you're getting weighed in a clinical setting, be sure to mention to whomever weighed you to subtract 1.75 pounds for your apparel.

What is the average amount of clothes bought? ›

On average, we buy 53 new items of clothing per year — four times as much as in the year 2000. Most people don't need more clothes today than they did two decades ago, so what's driving this rise in consumption?

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