what percentage of your income goes to clothes?

[Beckwith]

My two cents. I use credit as leverage against home appreciation, and other investments. I have a charge card that is paid off every month, and most of my credit card debt is interest free or low APR as i work for a bank. I think $5,000 for a college student is a bit high, and agree with the sentiment here that it will be years before that is paid off, all while trying to match the extensive shoe collection of Aportnoy. I don't think credit is as bad as people say it is on this board, as long as you have the means to pay more than the minimum each month.

 

[NewYorkBuck]

A real life example -

I only have carried a credit card balance for two months of my life - when I started my first job and had zero clothes. Two months of bare sustainance consumption and I had them back to zero again. Never have carried another balance since. Even before this, I was very careful in college to never rack up any balance I couldnt pay at the end of the month.

Conversely, my best friend looked at things somewhat differently. He went to school at UNC, and did his best to have a great time there. As a student, he would routinely go to the NCAAs and stay in the best hotels. He would buy nice clothes and eat at fine restaurants. His rationale was that "He's only a student once, he should have a good time now." Granted, he started slow, but once the ball go rolling, he just rationalize more. Low and behold, he graduated with over $30,000 in debt, not including school loans, and this was in 1994. Now, 12 years later, he has a good job as a lawyer in NC and has his own house, but funny thing is, that $30 grand is still not fully paid off. I shudder to think of how much went to interest over the last 12 years. Something to keep in mind for those thinking of "short term" splurges.

 

[Ambulance Chaser]

I was planning on answering "zero," but the whole cold turkey thing is working out as I planned. I don't keep track of what percentage of income my clothing expenditures constitute. Instead, I lump clothing purchases in with dining out, bar tabs, and other entertainment expenses in a "discretionary spending" category. I aim to limit discretionary spending to the point that I am able to save 10% of my after-tax, after-401(k) contributions, after-necessities income. If I spend more on clothing one month, I'll dine out less often (or at cheaper restaurants) and vice versa.

In light of what is happening this Monday, looks like I'll be eating a lot of ramen this month.

 

[nerdykarim]

Originally Posted by Ambulance Chaser

In light of what is happening this Monday, looks like I'll be eating a lot of ramen this month.

This thread gave me the willpower I needed to restrain myself from the only shoe tempting me today. Thanks guys!

 

[Stu]

Originally Posted by NewYorkBuck

You need to read sources not provided by cc companies then. Your credit score is determined by the Fair Issacs model, or FICO. This model uses almost exclusively 5 inputs to arrive at the score. They are, in decreasing order of importance - Credit/payment history, amounts owed, duration of credit history, new credit lines (credit checks as well), and types of credit in use. Using and paying off each month a cc balance will help many of these. Carrying a balance will not.

True that, but isn't it seen as negative if you have a card with say a 20k limit and 0 on it? They look at that as something you could go quick fill up as soon as you get approved for your home loan.

 

[demeis]

I would probibly say 75%. I'ma student who works but i don't really have a balance right now. I just love clothes and i have an income i can spend and no loans. However i never want to carry a credit balance.

 

[thinman]

Originally Posted by Stu

True that, but isn't it seen as negative if you have a card with say a 20k limit and 0 on it? They look at that as something you could go quick fill up as soon as you get approved for your home loan.

Nope. Available credit, as long as you haven't recently applied for a major credit increase, improves your FICO score. I was told this when I applied for a mortgage and I've done the experiment. A card with a 20K limit and $0 on it means "responsible", as long as your other credit history looks good.

 

[Demeter]

I'll have to agree with everyone talking about staying out of credit card debt. I'm a student, myself, and avoid it like the plague. The way I figure, student loans are more than enough for me. Instead what I do is when I need something, I work a bit to save up money and buy it like that. That's how I bought my car, that's how I wine and dine my lady, and that's how I pay for my clothes.

This way I can splurge every once in a while on a nice pair of Canali slacks, or a Samuelsohn suit, or a pair of C&Js. And this is with having very little income. I'm independent from my parents save for their roof and food, I'm a full-time student and I'm running my fledgeling business full-time. I just do my best to make smart decisions with the money that I *do* have. Keeping this up, I'm sure that in a few of years I'll be able to upgrade to Oxxford and EG, and trade in the Baume for a nice Lange or Patek.

I don't mean to brag, I'm just saying that this little hobby of ours? If it's within reach for a starving student like myself (

), then I don't see why it should be impossible for someone else... sans credit card debt.

 

[Demeter]

Originally Posted by demeis

I would probibly say 75%. I'ma student who works but i don't really have a balance right now. I just love clothes and i have an income i can spend and no loans. However i never want to carry a credit balance.

You're a rock star. I'm glad to see I'm not the only one that's this un-hip (according to my friends).

 

[denning]

I'm yet another student who spends a majority of my disposable income on clothes. I don't know percentage wise what I spend as I am not working while in law school. I have student loans and credit lines that I live off of. I have a monthly budget and whatever I am under for that month can go towards clothes. I usually go on 3 big shopping sprees per year where I will spend between $1000 and $1500. Although, these sprees are at Holt Renfrew's Last Call store and over the last few years I have averaged 90-3% off retail. So I may purchase $4500 a year but get close to $40,000 out of it. After doing this for the last couple of years I don't really need all that much more, just a piece or two here or there that is judiciously selected.

 

[Aaron]

I should be studying for a final at the moment but I thought I'd post. I'm a student as well and the amounts of credit card debt I see some of my friends getting into is shocking. Some of them expect to maintain the same lifestyle when they graduate and I don't see how they are going to do it. I had to ask my parents for money once in 1st year because I didn't budget at all (not CC debt, just no money), I promised myself I would never do that again.

Anyways, I work for the mortgage department of a major bank. Part of my job is to look at debt load and the client's ability to service it. The product I deal with is for higher income earners (You would be amazed at the debt load of some people earning 250-300k/yr). Noctone, 5k is an acceptable CC debt load for someone earning 2-3x what you earn. You've said that what you've spent is an anomly but from what I've seen CC debt is especially easy to get into and hard to get out of (just a caution).

A.

P.S.>Not trying to attack you but I think your income calculations are a little bit off too. But I really need to get back to studying, so that will have to wait.

 

[poorsod]

Originally Posted by nerdykarim

This thread gave me the willpower I needed to restrain myself from the only shoe tempting me today. Thanks guys!

Fortunately for me, the 9.5's were almost bought out in 15 minutes.

Made resisting much easier.

 

[Horace]

Very little. Not because my income is so large, but because my spending is so low. Very few things that I want. Save a few pairs of shoes or a shirt now and again.

 

[LabelKing]

I'm actually with you there, Horace. Perhaps I'll buy four or five items a season, maybe a unique piece from a collection or something.

Although I am a fan of accessories and small objects like lighters, and things.

But as they say, one can never have enough shoes.

 

[Lloyd]

A quick tally reveals I spend around 10% of a megre govt. grant, supplimented with a bit of tutoring work, on clothes.

When I was a student I made a load of expensive but overpriced impulse purchases which I regret, but, thanks to SF in part, I've managed to avoid such behaviour recently. I cringe when I think about those full price Church's, or that MTM suit not even fully canvassed, and the less said about the cravatte fetish the better.