The clothes that (may) make the (wo)man
How often do you create a lifestyle around your clothes? Especially for the women, it’s about looking the best or just right for the occasion etc.
What you need to think is what is the actual cost of this and how can you minimize the cost to your bank account (Or Credit Debt)
I often wonder how many women can afford new clothes, the hairdresser, shoes and the makeup.
Men and women have a different way of looking at what clothes they wear when they are at home, work and goofing off.
Yet, many people will judge a book by their cover.
Walking around the streets and shopping centers it is amazing to see the ratio of men to women’s shops. And of course, there is the online stores
Men seem to have a set of clothes which seem to be worn more than once and not often will people say look, he is wearing that again.
Yet Women Clothes are so different
TV is a real eye opener along with magazines, as they talk about women’s clothes, what the fashion is and what is coming next season.
Then the Clothes Sales
Amazing to watch how many women go and buy and use the credit card and get the latest designer clothes or the person who goes to Walmart, Kmart etc and get the copy or something that suit them.
Yet, how often do you see someone pay Cash?
Well, there are 3 different ways which you need to consider. Let us check them out
The Money Trap of Spending
This is a bit of a concern. As if you are on a budget and you see some amazing dress or suit you must have, AND it is on sale what will you do? Many will go and buy it, after all, it is 20% or even 50% discount on the original price. Oh wow, how can you go past that?
So you pull out the credit card and hand it over and next thing you have a new debt on your card or even a top up to an existing debt.
There are two options. When the money is due you pay it off in full and woohoo no interest. Or you think, you will pay some now and the remainder next month or over several months.
That’s fine. What you need to figure out is this. If you pay it off. What is the interest and have you added up the interest and added the total interest to the original purchase price? Go figure it out now. If you paid $100 for a $150 dress and decided to pay it off your card.
The first month is probably free like most cards. Then you could get hit by interest. Imagine over 4 months you paid that dress off at 20% interest. Chances are depending on your interest rate. The dress actually cost you more money once you add up the interest.
This is an amazing card. First, a debit card is like a bank savings account. Now, you can only buy on it what you have on the card. You see to use this card you must actually transfer money from your bank account to your card. So when you go to the shop. You
When you go to the shop. You may buy only what you have on that card. So if you have $500 on the card you pay the $100 for that dress in the above example and there is no interest. It’s paid for it is yours and you don’t need to worry about what you have to pay off in 28-days etc. They also have different rewards programs so you benefit on gaining points for different things like holidays etc.
Virgin Airlines Card is a great example. Not only do you buy what you can afford, You also gain points to fly cheaper on their airlines.
Bonus of a Debit Card
- No credit debt
- Bonus Flight/accommodation points
This is very much the same as a Debit Card you only pay for what you can afford and you have paid 100% of the purchase price.
The Due Date
Big problems can arise from continually using a credit card.
First: you have to keep an eye on what your spending and what you are paying off your card. Especially if you do not pay it off in full each month.
Secondly: you have to be aware what if something goes wrong?
- Car breaks down
- Washing machine breaks down
- You become ill or have an accident
- Loss of job
These are 4 things you must be aware of when you are using a Credit Card.
When buying clothes or anything, it is important to have a backup. This is why you should consider having a Credit Card for Emergencies only.
Many people these days spend what they don’t have. A lot of people will think or hope that nothing will happen which will put them in a position where they cannot pay off their card.
Yet, if you have a Debit Card or a Bank account card you will only have spent what you can afford and have a credit card which you can fall back on.
Real Case Scenario
- Utility Bills
- Credit Card Debt
- Car Loan
- Othe expenses.
How would you survive getting through the above?
This actually happened and it was not a good place to be. After all like you are thinking. “It won’t happen to me“
Married with a son, a mortgage etc. It was a back-breaking position to be in. With no real future expected at the time.
Think of your position right now and it’s like an insurance. You never know if you need it. But, you will be so happy if something went wrong you don’t have so much DEBT.
This is a good reason to first when thinking of spending money on clothes or anything that you have a plan for the unexpected.
These people had that same thought. It won’t happen to me