Ramit Sethi from I Will Teach You to Be Rich introduced his new project today. The Scrooge Strategy is an extension of his recent 30-Day Challenge, during which he urged readers to make meaningful changes to their financial lives.
“I hate most frugality tips,” Sethi writes. Instead, he wants to save big:
Many frugality tips focus on things like saving $10 per month for a huge amount of effort. That’s just not worth it. If I’m going to spend time to change my lifestyle — and eliminate the things I’ve been enjoying for years — I want to save thousands, not a few dollars.
Although Sethi and I disagree on the value of frugality — I think it’s an important part of personal finance — we do agree that bigger is better. If spending $1,000 and eighteen months at night classes can net you an $18,000 salary bump (as I suggest in my contribution to The Scrooge Strategy), that will make a bigger difference to your budget than saving a few cents on your cocoa. Both are good, but one offers a bigger payoff.
The Scrooge Strategy is an experiment for Sethi. It’s a paid subscription-based newsletter offering one new tip per week. “These are tactical tips,” Sethi told me in a phone interview last night. “They’re detailed ways for people to really save money.” To prove his point, Sethi forwarded his first four tips to me:
- Focus on two savings projects at once.
- Conduct a “savings interview” to learn how the successful save money. (I love this idea!)
- Be smart when making big-ticket purchases.
- Practice simple strategies to save money in restaurants.
Although I’ve summarized these tips in a sentence apiece, Sethi’s actual articles offer extensive background on each technique. I have to admit, I’m impressed. These tips are exactly as promised: detailed, tactical, and productive. They’ll help readers save money. I may have to sign up for The Scrooge Strategy myself!