Oprah has decided to hold an Ebay auction to sell through 250 items from her closet. You are probably thinking, okay and… ? And, well that means that you should too. She is cleaning out her closet with proceeds to go to The Oprah Winfrey Leadership Academy for Girls. I am not saying you have to do the same, but when was the last time you went through your clothes or household items and asked yourself, do I really need this?
The real question I am sure you are pondering is, what does this have to do with finance? Our spending attributes to roughly 95% of our finances. We spend on housing, clothes, food, vacations, just about everything.
You want to buy the latest top, but do you have a system in place to keep you from buying too many new tops? For me, twice a year, I start fresh with my closet and make sure that I wear every piece of clothing. I decided whether or not I like the clothing item or not and either pitch or donate it.
We buy so much “stuff” that we think we need now, but after a year, the true test of whether or not we need an item. People keep items for sentimental value or because they think they will be able to use it in the future. Be realistic. Will you?
Donate, Pitch, or Sell It
Take the plunge and open your closet doors and see what you have inside? Do you still have a dress that still has its tags on? Use apps like ThredUp which is online consignment shop to make some money off of your gently used clothes.
Shop smarter if you admire someone else style. Try the app Poshmark where you can see outfits from someone else’s closet. Copious is a good app if you want to keep your item within your circle of friends. Snap a picture, add a description and invite friends to check it out.
Build Spending into Your Budget
If you like to buy clothes or have a hobby, have you built that into your budget?
Keep some spending categories funded if you know that it is spring season and you might want the latest trendy top. If it’s a friend’s birthday that you always celebrate, set aside $25 for a present and $50 for dinner out.
I challenge you to look in your closet today and find things that you don’t need and make some room in your financial life.
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