How do I make a budget for clothes?

To make a budget for clothes, analyze how much you are currently spending on clothing, then review your income and other expenses to determine whether you need to set a lower limit or if you can afford to spend more. Once you settle on an amount, review your spending regularly to ensure you are staying within budget.

Households spend an average of 2.6% of their income every year on clothing, according to the U.S. Bureau of Labor Statistics. That’s almost $150 per month. However, the amount you spend on clothes may differ based on factors such as your preferences, income, and other expenses. A clothes budget can help ensure you are not spending more than you can afford on apparel.

How to Make a Clothing Budget

1. Analyze your current spending.

Review your bank and credit card statements and add up how much you have spent on clothes in the past year. Divide that number by 12 to see the monthly average. You might not spend the same amount every month on clothes, so it’s a good idea to review at least a year’s worth of your statements to get an accurate picture.

2. Review your income and other expenses.

Add up all your monthly expenses, such as rent, food, gas, utilities, subscriptions, contributions to savings, and what you currently spend on clothes, and subtract the total amount from your income. If you still have money left over, you could decide that the amount you are currently spending is sufficient and use your monthly average as your clothing budget, or you could spend a bit more on clothing than you have been recently.  

If the total amount of your expenses exceeds your income, you may need to reduce the amount you spend on clothes.

3. Determine what items to include in your clothing budget.

Figure out whether your clothing budget will just be for apparel, such as pants, shirts, dresses and undergarments, or whether you will also include things like jewelry, shoes, and other accessories in the budget. What you choose to include or exclude can help you decide how much money to set aside. 

4. Allocate money to clothes in your budget.

To figure out the right amount to spend on clothes, you should add up all your essential expenses, such as rent, groceries, gas, and utilities, and subtract that amount from your income. The money you have left over after covering your necessary expenses and contributing to savings can be used for non-essential items, such as clothing.

To determine how much of your discretionary income to allocate to clothing, consider how much you value new clothes compared to your other non-essential expenses. For example, if you value traveling more than buying new clothes, you can allocate more of your discretionary income to traveling rather than clothing.

Once you have settled on an amount, add a line to your monthly household budget for clothes and enter that amount. This way, you can make sure you are setting aside enough money from your income for clothes.

5. Track your spending.

Keep track of how much you spend on clothes. Tracking your spending allows you to easily see if you are going over your clothing budget. You can use a spreadsheet or a budget app, like the WalletHub app.

Budgeting apps can be more convenient to use than spreadsheets since some apps allow you to sync your financial accounts to have your transactions automatically tracked. You may also be able to set up alerts to notify you when you are approaching your spending limit.

6. Review your budget regularly.

Set up time weekly or monthly to review your clothing budget to make sure you are not spending more than your allotted amount. If you are consistently spending more than you planned, you may want to consider increasing how much of your income you allocate to clothes in your budget or reducing how much you spend on clothes. You can do things like shop less often, buy clothes from thrift stores, and look for discounts or sales at clothing shops to save money.

Additional Clothing Budget Tips

Consider a separate bank account for your clothing budget. It may be worthwhile to set up a separate bank account just for your clothing budget, especially if you tend to overspend on clothing. It can help prevent overspending and stop you from using money that you have set aside for necessary expenses. Alternatively, you can get an account that allows you to set up buckets for different savings goals.

Prioritize quality over price. You may want to invest in some high-quality, timeless outfits that can last longer than cheaper or quick-trend clothing. This can reduce the need for you to constantly spend money replacing worn out clothes or clothes that will go out of style. However, if you are not someone who takes great care of clothing, buying cheaper clothes more often may be better for your budget.

Sell old clothes. Take an inventory of your closet and sell anything in good condition that you haven’t worn in a year. You can add the money from the sale to your clothes budget to increase your spending power.   

Rent outfits for special occasions. If you are going to a wedding, gala, or any other special event, consider renting your outfit. The cost of renting an outfit will have a lower impact on your budget compared to purchasing a brand new outfit that you will only wear once. 

To learn more, check out WalletHub’s guides on how to budget and how much to budget for clothes.