That $30 dress seems like a good idea … but H&M, Forever 21 and other cheap clothing stores are actually costing you lots of money.
We’ve broken away from the seasonal cycle of clothing. You no longer see new clothing lines two to four times a year; you’re seeing them every week. The problem is that consumers are hooked on a cycle of buying and tossing clothes—or keeping them but not getting a lot of use out of them.
We’re spending the smallest percentage of our income on clothing that we’ve ever spent. But we’re essentially throwing that money away—$20 here, $20 there. It’s not a lot, but if you’re only going to wear an item once or twice, whatever you’re spending on clothes goes down the drain. That’s the psychology of cheap: We don’t value things we pay little for.