Can you save $1000 in 30 days?

"First things first, but not necessarily in that order" - Doctor Who in Meglos

There are two guaranteed ways to have more money: you can earn more money or cut costs. The blog, I Will Teach You To Be Rich, usually focuses on the first method - increasing your earnings. However, during the month of November, Ramit Sethi will be giving daily tips on how to cut costs with the Save $1,000 in 30 Days Challenge

As Ramit puts it, "You’ll notice that I haven’t written a lot about frugality ...
That’s because Americans suck at frugality. We spend more than we make. We’re terrible at deferring our immediate wants and investing for the long term. We go into debt. And we blame everyone but ourselves."

Then he read this article, 8 out of 10 Americans stressed because of economy and realized that, "everyone I’ve been talking to has been worrying about their money" and "the people I’ve talked to want to know how to save money right now." This inspired Ramit to launch his challenge to Save $1,000 in 30 Days. "I’m not trying to save $1 or even $10 per week, because it’s not worth changing your behavior for that kind of money." No "retarded suggestions like 'Start a garden' or 'Buy day-old food from bakeries.' ”

Bottom Line

It's not too late to join the challenge. In fact you can start anytime you want. The first three tips are:

Tip #1: Pack lunches for the rest of the week
Tip #2: Turn your thermostat down 3 degrees
Tip #3: Sell something on eBay today

I'm now following Tip #1 with the start of a new job. When unemployed and reviewing expenses for the year, I realized how much money I was burning up with breakfast and lunch out in NYC every workday. Tip #2 has been followed for many, many years. My wife keeps the thermostat VERY low. I would consider Tip #3 if I needed to raise cash fast. Instead my wife uses eBay to buy items cheap. She is much better than I at walking away from an auction when the price climbs too high. She will track items for months and place limited bids until she wins at the price she wants. I use eBay or Half.com to buy used text books at bargain prices.

One final recommendation if you are having money issues. Read this article from consumerist.com: Reader Pays Off $14,330 In 20 Months. A loyal consumerist reader tells how she changed her life in order to pay off $14,330 in credit card debt and even saved some money in the bank.