So Ramit is having a Save $1000 in 30 days challenge. I started reading the tips he had and so far I really don’t see how I will be saving according to his rules. I think this is set up for people who have not already been frugal in their lives since if you were already doing the things he writes about then you would not be saving any addtional money.
I was already doing the things he talked about so far BEFORE reading his posts.
Here is a list of what he has so far.
Tip #1: Pack lunches for the rest of the week
I already do this so no savings here for me. This is a tip that everyone keeps repeating but so many people seem to not follow. What really amazes me is the number of people who have commented saying that they are saving hundreds already.
Really?
You guys have been spending over a hundred dollars a week on eating at restaurants? Wow that is really amazing.
Tip #2: Turn your thermostat down 3 degrees
Moot. I don’t run the air conditioning during summer since I prefer to open the windows and run the fans in the room that I am spending the most time.
I use a space heater during the winter and wear socks and long sleeves.
Tip #3: Sell something on eBay today
Been there done that. It is not as easy as some people think to sell things on eBay. Sometimes you can list items and have them sit without selling for a long time. Then you are out the listing fee and you still have the item.
In other cases you can sell something within a very short time of listing. I think it takes more luck to sell on eBay right now.
Tip #4: Involve your friends in your savings challenge
For the most part my real friends are not interested. Baz has picked up on couponing and the ING thing but the rest of my friends just don’t get it.
Tip #5: Optimize your cellphone bill
We have been optimized. Baz and I share a plan and we got unlimited text messaging for $5.
We were lucky to get that because text messaging has increased in price and we get text messages, video messages and picture messages all included.
We are NEVER changing that plan because we don’t know of ANY other plan that gives you unlimited (all kinds of) messaging for that price!!!!!!
Tip #6: Use gas prices to become your own hedge fund
With this tip Rammit is saying that you should budget a certain amount and even if the actual amount you spend is less then you still pretend to pay that amount and transfer the difference to a savings account.
This is not hedging in the true sense of the word because when prices go back up you are still going to pay the actual price.
If we were truly hedging, then we would have locked in a price and you would pay the lower price when gas prices did go up.
What you are actually doing is simply saving for gas…not hedging according to the definition of the word.
Tip #7: Create a “No Spending” day once a week
Here he is saying that you should pick a day where you do not spend any extra money. Well in between packing my lunch and not going shopping I am already having five no spend days a week.
I go to CVS and Walmart on Sunday and then go to Walmart again on Wednesday sometimes.
Tip #8: Implement the A La Carte Method
This tip states that you should pay for things as you use them instead of having a bulk subscription where you barely utilize the service. This works in general but in some cases it is better to have the subscription. I used to go to WalMart every Sunday and pay $2 for a newspaper…but decided it is better to pay $7.5 for the monthly subscription.
I know that I will make full use of the paper subscription because I faithfully cut my coupons every Sunday. Okay, I actually get my students to cut them for me now on Mondays for extra points (and then go to CVS on Monday after schoool but that is another story).
Tip #9: Only buy new things when replacing something old.
Sometimes this is not entirely possible. I put on a bit of weight so I had to get some new clothes for work. Now I know you can say I should exercise to lose the weight…but I didn’t. So there.
I also don’t wait to run out of toilet paper before I go buying a new pack. I prefer to have extra toilet paper on hand than to need and not have enough.
Oh and what about times you have a little bit of cereal left in the box…it is not quite enough to make a meal so you need to buy a new box to combine with that one. It is not enough to eat the small amount so you just have to bite the bullet and get some more.
Tip #10: Use the free rewards from your credit card, car insurance, and workplace
I use the rewards from my Chase card and Discover card. I love them because between the two cards I can pay for EVERYTHING that I need and get cash back for those purchases.
My workplace does not offer any rewards unless you count the Friday lunches where someone always brings hot dogs (which I do not eat).
Tip #11: Never pay full retail price for clothes or eyeglasses again
Been there, done that. I got my glasses (before I got LASIK ) from an online source which made them in Hong Kong. It took a couple of weeks to get the glasses but they were so much cheaper than getting them from an optical place in the US.
I wait for clothes to go on sale and look for coupons if available at a store.
Tip #12: How I’m saving $2,000+ on eating out in 2009
I have not seen anything spectacular thus far that will help me to save more than what I already save. I am sorry that he was spending over $2000 eating out instead of preparing meals at home.
This tip goes along with bringing lunch to work so it really should not even be a separate tip.
In general I have not seen anything awe inspiring about the tips to save money here as they are already being implemented in my life.
I am glad that some people have found them useful but for me there is nothing new here.
I agree, if you’re already frugal tips like this are meaningless. Even before I became frugal I always brought my lunch, eating out is expensive! The problem with money saving tips for the already frugal is they tend to be extreme. I’m not splitting my two ply toilet paper into single ply or washing paper towels to reuse, I have my limits.
Miss M’s last blog post..Creating a Financial Inventory
Washing paper towels is right up there for me with washing straws…gross to the max.
I have my limits too……………I am gagging just thinking about the paper towel thing.
It’s really hard to find articles on how to save money when you’ve already been cutting back for so long. I”m in the same boat as you with packing lunches, having non-spending days, etc. What I want is a savings guide for people who are already frugal. Give me some serious tips!
Sarcasta-Mom’s last blog post..The Progress
I don’t think there are any more new ways to save money out there for people like us. I think all we can do is extend the ways we already save….like if you bring your lunch to work, then use the office ketchup instead of your own or something like that.
Tip #6: Use gas prices to become your own hedge fund
So I was looking into this and saw petrofix.com. I did this instead because “trading” was making me a little nervous. I am happy so far and half way to $1000 saved using all of his tips!
Well Maria,
I am glad that you were able to newly implement the tips above and save money…but for those of us already using them we saw no savings.
I do most of this already. I have recently added what I call ‘Spartan Wednesdays’ which is where I spend 0 dollars for the day, I even go so far as packing the cheapest lunch possible for work. A bologna sandwich.
Norm’s last blog post..My immediate plan for additional income
It is good that you have Spartan Wednesday. I just hope that you do not negate the effects by overspending a few days later. 🙂
Tip #4 about involving your friends is terrible! It’s one thing to b*tch about the state of your IRA and 401K, but people will at best think you’re boring and at worst think you’re weirdly obsessive if you go on about double coupon week at the supermarket and cutting dryer sheets in half.
MoneyMateKate’s last blog post..What would you NOT buy at a dollar store?
I only have one friend right now who thinks about saving money. The rest of them are blissfully ignorant of where their money goes. I doubt if any of them know what a debt snowball is and they would not really care anyway.
I have declined nights out because they don’t fit into my budget…only to be told “Oh but you just got paid last week”. I guess they don’t understand that it does not matter if I got paid last week or this morning…the money just was not in my budget!!!!
I am very curious to see what you bring for lunch. What is the actual costs for your lunch? How do you plan it out? Do you buy a week in advance? I have always debated bringing my lunch but there are so many places that are so affordable like Trader Joes, they have a $2.99 salad. Maybe your next post could be something about this.
I had just been bringing left overs from the weekend cooking or a cheese sandwich and some fruit.
I never calculated the cost of bringing my lunch to work but since a 6 inch sub fills me up and a cheese sandwich and a banana fill me up just the same I am guessing about $2.79 for the meal. 🙂
I have recently started a meal plan that I think I will implement in February that will make better use of the food that I already have at home. I will not be calculating cost per meal or anything like that….I am just doing it so that I don’t eat so many cheese sandwiches for lunch.
I always get engaged with posts like this. Saving money requires very strong will power especially if you’ve never had a reason to before.
Tip #1: Pack lunches for the rest of the week – This is a must-do if you want to see a significant amount of savings weekly.
One good thing that your posts always brings is sincerity and realistic tips. Mon
I agree with you. The main thing is to build up the willpower and then you can really take charge of your finances.
A very good point! Amy D of Tightwad Gazette fame said that it’s misleading to talk about what you save. That is, it’s better to spend, say, $1000 on restaurants than to say,” I used to spend $5000 on restaurants and now I pay $2000 so I SAVED $3000.”
I looked at those tips too and had done most of them (at least the ones I wanted to). the same for a list of tips in the Wall Street Journal.
frugalscholar’s last blog post..But that’s not frugal!
There are a few ideas here that I like, but as you said, if you are already frugal, there really isn’t much you can cut back on.
I have been turning my thermostat (heat) completely off at night, as I like to sleep with cool air and this helps to save money at the same time. Only thing is, its really cold when I wake up hah.
I have actually had a lot of success with stuff on eBay. The key for me is to price the stuff low enough to attract attention and make it worth the buyer’s time.
I am with you, most of my friends don’t get the big picture about saving either. You can only try to help them so much.
I could probably cut some out of my cell phone bill, but I use it a lot and doing so would likely cost me even more money in overage fees.
Shawn Knight’s last blog post..Two Year Anniversary
I agree — I don’t think you even have to be frugal to so much as just watching your unnecessary expenses to accomplish everything on that list. No new info there.
Tip #9 is actually a terrible idea. If you wait until you need something to buy it, it might not be on sale. Buy stuff you use when it is on sale, then you aren’t stuck paying full price when you are desparate.
Tip#8 I love that you have your students cut your coupons for you. That’s awesome.
Tip #2 You really need to get a programmable thermostat that can be set to go down when you are sleeping, or at work. Huge money savings!
Considering we are living off $2,200 every month, saving an additional $1000 would be quite an accomplishment. They must be new to this frugal living thing.
Staci at NoIwasn’t sleeping’s last blog post..2. Living Debt Free