Ramit’s IWillTeachYouToBeRich.com Series — Tip #23: Go cash-only for 15-30 days — NMBankruptcyBlog.com

This is a link to the twenty-third in an ongoing series billed as 30 Day Challenge to save $1,000 by Ramit Sethi at IWillTeachYouToBeRich.com, his blog on personal finance (banking, saving, budgeting, and investing) and personal entrepreneurship. His series outlines the various ways we can keep money in our pockets.

Tip #23: Go cash-only for 15-30 days

No, this is not an unusual tip, but I’m going to try to add some nuance to it besides “CREDIT CARDS ARE BAD!!!!!”

Ramit overviews the pros and cons of using credit cards — the pros, as he says, are that, used carefully and wisely, they can offer excellent consumer protection, substantial bonuses, financial automation, and an interest-free loan if you pay them off in time. Again, used well, they also help build your credit rating.

But it’s very easy to overspend with credit cards, and his tip is to experiment with going cash only for two weeks as an experiment.  Ramit’s credit card had been stolen and he used cash only for two weeks while getting a replacement card operational.  He found that he spent approximately 18% less because he was much more conscious of his purchases — the money was out of hand immediately.

For the rest of the post click here.

For previous tips: 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, Tip #4: Involve your friends in your savings challenge, Tip #5: Optimize your cellphone bill, Tip #6: Use gas prices to become your own hedge fund, Tip #7: Create a “No Spending” day once a week, Tip #8: Implement the A La Carte Method, Tip #9: Only buy new things when replacing something old, Tip #10: Use the free rewards from your credit card, car insurance, and workplace, Tip #11: Never pay full retail price for clothes (or eyeglasses) again, Tip #12: How I’m saving $2,000 on eating out in 2009, Tip #13: How to negotiate your car insurance, Tip #14: Use self-persuasion to share how much you’ve saved so far, Tip #15: Forget going to a bar — ask people over for dinner, Tip #16: Cancel any large purchases this month, Tip #17: Buy generic for the stuff you don’t care about, Tip #18: No Christmas gifts this year, Tip #19: Save Money, Eat Well, and Look Hot in Less Than an Hour, Tip #20: Change the date of Christmas, Tip #21: Save thousands by pre-paying your debt, Tip #23: Analyze your progress in the 30 Day Challenge

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