A Painless Budget Cut: Fashion

Budgeting can be tricky! Especially when it’s time to cut back on spending a little bit. What needs to go first? Where can you save some money, just for a time?

Budget Bee has plenty of helpful tips and tricks on softening the blow.

This time, we’re talking about how you can cut back on clothing and fashion.

How much are Australians spending on fashion?

The last deep dive by the Australian Bureau of Statistics reported that in 2016, the average Australian household spent $44 on clothing and shoes a week. That’s $2,288 each year! And while some savvy savers manage to sit comfortably below that figure, plenty of people are blowing out their budgets by spending far more.

In 2012, Statista.com placed Australia as the number one in per capita apparel spending, sitting at $1,522, far above others in the same report. Another market report by Statista.com predicts Australia’s total fashion spend will be nearly $30 billion this year.

So it’s no surprise that some Australians are spending more than $400 per month on clothes.

Which means there’s plenty of room for improvement, or even just a bit of space to cut back when you need to tighten the belt.

What can cutting your fashion bill do for your savings goals?

Whether you’re spending $44 per week on clothes, or over $100, there’s room to tighten the belt.

If you reduced your spending from $100 to just $20 a week, you’d be able to save an additional $4,160 a year. Now that’s an incredible saving!

So, what can you do with an extra $4000 in your budget? You could get ahead on your home loan or put some money towards that dream car you’ve wanted.

After dealing with the effects of a long pandemic, it’s a great time to go on a well deserved holiday. And with overseas travel becoming available again, some extra money in your back pocket could get you there.

It’d be great to have the extra money in your budget, but how do you cut back on the clothes bill without feeling like you’re giving up too much?

Budget Bee has some great tips for you.

Impulse buys are a large contributor to overspending on fashion. Budget Bee had some excellent advice in our previous blog for avoiding the impulse purchasing that often causes a bloated bill.

Another big issue causing Australians to spend more than they should is the move to online shopping, especially for the younger generations. With our phones in our hands so often now, it’s easy to browse through racks of clothes without leaving the house. And the savings that it seems like you’re making don’t stack up when you consider all of the waste you’re generating.

The best way to save on clothes is to set yourself a monthly budget and be sure to cover your needs, like work uniforms or replacing old clothes. And if you have the opportunity, go shopping in the old brick and mortar shops to flick through the racks there. You’ll avoid the low-quality textiles you find online, so your clothes will last longer, and you’ll be supporting local South Australian businesses too!

Like all budgeting tips, the most important thing is to keep up to date with your changing situation. Talk to your financial advisor and make intelligent decisions based on your circumstances.

And that’s the buzz from Budget Bee!

If you have any great success stories of you saving on your bills, or you’d love to hear more financial tips from Budget Bee, pay him a visit on his Facebook page