Ever since I started making my own money, I was always more cautious of how much I spent on just one item. I remember turning 16 and getting $500 as a birthday gift to go on a shopping spree with. CHA-CHING!
I remember entering the mall feeling like all of my hearts desires were finally within my reach. Literally within a few hours my $500 was gone and to be honest, I didn't have much to show for it. Give me $500 to go shopping with now and I'll load up my car with new favorite pieces to add to my wardrobe.
One of my best girlfriends bought me The Shopaholic's Daily Calendar for 2011 and I just love its daily tips, quotes and fashion blog/website suggestions. Today's tip is definitely one of the most helpful when fighting those urges on whether or not to splurge for that Milly lime green cashmere sweater you (er, I) have been dreaming about at night that is taunting you on Ebay. Do you up your bid or let that precious piece go to save yourself from emptying your life's savings and probably regretting it later?
The cost-per-wear formula is my new go to tool when I am trying to figure out what I should and shouldn’t splurge on. According to the formula, items with high cost-per-wear’s, such as a formal party dress and other formal stuff that you only wear every-so-often are actually more impractical to splurge on than slightly more expensive items that you will wear/use on a more regular basis.
Here’s the magic formula. Commit it to memory immediately!
Cost Per Wear = $ Cost of Garment / Number of times you’ll wear it.
Here’s a look at the formula in action: For example, if you buy a cheap top for $20 and wear it twice before it goes out of style or falls apart, that top cost you $10 per wear. If you buy an amazing pair of Rag and Bone jeans that flatter your figure, and wear them just twice a week for a year, the formula is $165 / 104, and the jeans cost you just $1.58 per wear! See the difference? Although on my budget, I still can't imagine myself buying a pair of jeans for $165, but that's just me.
So put the cost-per-wear formula to work for you every time you aren’t sure if an item is worth its price, but the true key to this success is being honest with yourself! It will help you see the real value of everything you buy.