My budget and closet are too small to buy and/or keep clothes around that don't fit. The only exception is my wedding gown (which is now too big, but I'm not keeping it to wear, so that doesn't matter).
I don't use too-small clothing as a motivator. It wasn't that it couldn't be an effective dangling carrot, but it always seemed that when I did it seemed like "cheating" to buy clothes that fit NOW, so I only ever had "too big" and "too small" clothing in my closet. And by the time the motivation clothing did fit, the excitement of it fitting was pretty short-lived (not enough bang for the buck, so to speak).
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