Challenge #3: Set a spending limit...and stick to it.

Tracking my spending is what opened my eyes to this mess in the first place, so it only seems appropriate that I look at my spending and make some changes. Up until this minute, I've had no specific clothing budget. I had a monthly spending budget, but I always ended up blowing it. Probably because I never watched my spending on clothing, and when real bills came I had to pay them, thus putting me over budget.

My first step was figuring out how much I should spend on clothes. So I did a little research (or "Goog-search") and was surprised to find no real definitive answer. I read everything from 2% of your salary to 8%, but nothing over 8%. I ended up finding a great tool for budgeting at The Washington Post. Pretty handy, and it uses the top of threshold which works for me. Last year I spent 18% of my salary on clothes. I can't go all the way down to 2%. That's a recipe for failure. So 8%....

I also did some other calculations. I'm supposed to be saving 10% of my salary and I'm not doing that. So I need to factor that in. Surprisingly, even though I live in New York, I was on target for my rent! So after crunching all of the relative numbers, I came up with $750 per month to spend on clothes.

Now to me, and I'm sure to most people, that's looks like a LOT of money. It's a hugely generous budget that allows for designer purchases. I am again floored by the fact I was spending more than TWICE that on average every month and have so little to show for it. I am mad at 2009 me. She's stupid.

So far this month I'm under my budget. I've spent $540 ($360 on the Lim top, and $180 on a Calvin Klein knee length down coat). That leaves me $210 left to spend. But I don't have to spend that. I need to keep reminding myself that $750 is the maximum I can spend, not the minimum I should spend.

Although I might get those Seychelles shoes...I'd still be under budget. Hee hee!

12 days to go this month...I wonder if I'll make it.