KENNEDY FUNDING RIPOFF REPORT: Financial Decisions in Fashion

Understanding Fashion Economics

The fashion business has a lot of economics rolled up into its supply chains, how we think of brands through marketing and how we behave as consumers. Smart buying in this industry is only attainable if you can separate the underlying economics of fashion from the “real” value of fashion products and their pricing strategies. The ways in which the marketing of fashion distorts the way we think about our value as consumers are often through aspirational advertising messages (or influential individuals endorsing products) that encourage purchasing items beyond what is actually necessary or within one’s financial means. By understanding these tactics and being financially literate in the world of fashion, you can help yourself make informed purchasing decisions that reflect your values and financial situation, rather than making emotional impulse purchases that could leave you with significant amounts of debilitating debt or regrettable purchases.

Evaluating Fashion Value

The evaluation of fashion value, including the cost for each wear, quality, longevity, versatility within various environments, and alignment to an individual’s personal fashion style. For example, a designer item that is worn many times throughout the years has a better fashion value than many inexpensive products that are worn only once and then either quickly deteriorate or go unused.

A long-term view on fashion value encourages consumers to make more informed purchasing choices, which in turn will save them money over time, because you’ll be buying fewer expensive products. The fast fashion industry model has added a temptation of apparent bargain prices for clothing; however, it can be very expensive when you consider how many times you have to purchase new clothes to replace the ones that are out of style or are no longer wearable due to low quality. By not purchasing and replacing clothing on a regular basis, you will decrease your overall spending on fashion while creating an overall cohesive wardrobe, thereby increasing your enjoyment of what you wear. To do this, you must develop the ability to stop chasing after trends and build your confidence in YOUR individual style that will last beyond the seasonal cycle of fashion.

Fashion Investment Analysis

Avoiding Fashion Finance Pitfalls

Fashion-related debt generated from credit card purchases is a significant financial blunder; it turns inexpensive clothing into an expensive debt through interest charges on your credit card. The ease of buying clothing with credit cards, store cards, or buy-now-pay-later services is very tempting; however, this temptation can result in creating debt that quickly becomes unmanageable, only to satisfy your need for a new outfit for a temporary period of time (i.e., the latest fashion). Creating a fashion budget is one way to stay within your means when purchasing clothing.

By using cash and/or debit cards to purchase clothing items, you do not run the risk of incurring debt that would take years to pay off while your clothing items become dated and lose their value. The social and psychological pressure to be fashionable is particularly prevalent among young professionals in industries where there is a high level of importance on maintaining a certain image (e.g., healthcare, business, law, etc.). This pressure often leads young professionals to spend more than they earn and delay meeting their other financial goals (e.g., saving, investing). When you consider that many fashionable people wear the same selection of high-quality clothing on a regular basis rather than consistently buying new clothing items, you can better understand how to handle the social and psychological pressures of being ‘fashionable’.

Creating Habits of Sustainable Fashion Purchasing

Frequency of Items For Sustainable Fashion Mindfully shopping for sustainable fashion will benefit both your wallet, as well as our planet. Sustainable fashion means that one should thoughtfully consider when they purchase clothing; does this item fit within my actual needs? How many times do I plan on wearing this item? Will this piece work with the other items already in my closet? By making meaningful choices while shopping, we can avoid impulse buys and having clothing piled up in the back of our closets, while allowing you to make clothing purchases toward items that you will wear often enough that they add value to the total cost of your wardrobe. By being disciplined and consistent, you will be able to minimize the financial and environmental costs of shopping, thus enabling yourself to create a functional and stylish wardrobe for many years to come. In addition, there are many opportunities for you to purchase the styles and brands you like through purchasing secondhand clothing, and/or renting clothing. By taking advantage of both markets, you can have access to the latest fashions at a fraction of the financial and environmental impact of purchasing new clothing. Many fashion-conscious individuals build impressive wardrobes primarily through secondhand purchases and strategic rentals for special events, instead of paying retail prices.

Fashion-Related Financial Questions and Answers

Q: Annually, how much money should I spend on my clothing?

A: It will depend on an individual’s income and lifestyle, and most financial advisors indicate approximately 3-5% of the individual’s total take-home income is generally a good guideline when determining how much to dedicate to clothing. Every person’s financial situation varies greatly.

Q: Are higher-end fashion brands and retailers really worth the price?

A: Some of the time, the answer would be yes in terms of quality or workmanship; however, many instances, a person is merely paying for the brand name/authenticity of that particular item. It is important to evaluate an item separately so a person is not assuming that the price of the item reflects its value.

Q: Is it a good idea to have a store-branded credit card solely for the purposes of purchasing clothes/fashion?

A: Generally, the answer would be no. This could lead to increased spending, and store-branded credit cards have such high-interest rates that it makes them less attractive. Use a general-purpose credit card that offers rewards/cash instead.

Q: If I have a limited budget, how do I continue to be fashionable?

A: Stick to timeless/classic pieces, shop secondhand, have items altered for a proper fit, pair lower-priced items with higher-priced items, and do not follow fleeting trends.

Q: When is fashion worth the splurge?

A: Items that you wear regularly and/or where quality/tradition will affect how well the item will last/appear are worth the splurge; examples include shoes, coats, and basic pieces that fit your wardrobe style preferences.

Disclaimer

This article is intended to provide general knowledge of the economics of the fashion industry and consumer purchasing habits. It is not intended to be construed as an advisory opinion or statement of error regarding your finances, nor a recommendation for how to shop for yourself. Different financial situations and fashion preferences will lead to very different levels of spending for each person based on many variables including but not limited to: Income, lifestyle, job duties and personal beliefs about what constitutes “fashionable.”

The author and publisher do not accept any responsibility for the consequences or outcomes of the financial or style choices made by readers of this article as a result. The determination of the value of fashion is subjective and depends on multiple personal considerations. If you have severe financial concerns or significant amounts of debt, please seek the advice of qualified professionals; licensed financial planners or certified debt consultants. Also, nothing in this article should be construed as an endorsement or detractor of any specific brands, retailers or products used by your reader to purchase products they wish to own. Only the reader will determine which items to buy based on their current financial condition and need.