DAY 1

The Challenge: Track Your Spending



For the next month, here’s your assignment: Record where every cent goes. Save receipts, credit card slips, canceled checks, and write everything else down on a pad of paper. Or you can go all-digital with a site like mint.com that tracks every credit and debit card purchase. Whatever your preference, here’s the key: Let no donut go unrecorded. You’ll be surprised at just how much those $4 Dunkin’ runs add up. Often just seeing your spending pattern will point out ways to save.



DAY 2

The Challenge: Save in Your Sleep



Most of us think too much when we save. What do we mean? Big goals like your dream car, a vacation home by the lake, and your kids’ college education are huge and uncertain. If you wait until you know the exact cost and when it’ll strike, you’ll never save anything.



So start today. Instead of thinking about how much you’ll need to reach your goal, estimate the maximum amount you could possibly save each month, says Dan Ariely, Ph.D., author of Predictably Irrational and a professor of psychology and behavioral economics at Duke University.



Then set up automatic payments from your paycheck toward your goal. If you find you need more spending cash during the month, you can always adjust—but in the meantime, you’re stashing dough toward the day Junior gets into Yale.



Why It Works: Automatic payments don’t just make saving easier—they make spending less tempting. How? Money—spending it or even thinking about spending it—causes a dopamine rush in your brain. Then you’re relying on your willpower to resist handing over your VISA. That’s a battle you’ll lose, says Chip Heath, Ph.D., a professor of organizational behavior at Stanford University. “You can’t advise people to ‘spend less,’” he says. “You’re creating a willpower struggle that will have to be fought on a day-to-day, week-to-week basis.” So remove as many of those decisions as you can through automatic bill pay and savings withdrawals.



DAY 3

The Challenge: Transfer Your Savings to a Money-Making Account



Don’t stow extra cash in your checking account—you’re letting your money be lazy. “Having more than what’s required to avoid minimum-balance fees is a waste, because it’s not earning interest,” says Dan Candura, a certified financial planner at Massachusetts-based PennyTree Advisers. Stash a month’s worth of expenses in checking. Then put the rest of your emergency stash—experts now recommend a 6- to 9-month buffer—in a high-yield savings account. Compare rates at bankingmyway.com.



While You’re At It: If you’re always in the black at the end of each month, schedule a recurring automatic transfer to a mutual fund, Candura says.

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DAY 4

The Challenge: Bulk Up Your Emergency Fund



In this volatile economy, you should save at least 6 months’ worth of expenses in case you get laid off. To start, save much as you can once you’ve paid the bills, experts say. If you must insist on a number, start by putting 10 percent of your paycheck toward the emergency fund. Once you have 6 months’ worth of income saved, tackle your debt. (You might hear debt first, savings later, but the safety net is important to have in case layoffs hit.) “Setting aside cash is as important as avoiding interest, so be aggressive about both,” says Ray Harrison, the founder and CEO of Harrison Financial Group.



DAY 5

The Challenge: Balance Your Budget



Call it a “spending plan” or “financial strategy” if you can’t stand the b-word. Point is, you need to know where your money’s going if you want to save more of it. Use the five categories listed below, and within them list all the expenses you pay online from your checking account. (Put rent under housing, car payment under living expenses, etc.) Add a line for cash under living expenses.



Recommended budget allocations:



Renting

Housing 35%

Living expenses 40%

Emergency/insurance 2%

Pleasure/personal 15%

Savings 8%



Single with home

Housing 45%

Living expenses 25%

Emergency/insurance 6%

Pleasure/personal 14%

Savings 10%



Married with home

Housing 37%

Living expenses 25%

Emergency/insurance 8%

Pleasure/personal 20%

Savings 10%



Household with kids

Housing 37%

Living expenses 30%

Emergency/insurance 10%

Pleasure/personal 15%

Savings 8%



While You’re At It: Stay humble. People who lack financial confidence often make the best money decisions. In one study, when people were told that budgeting was difficult, they estimated their expenses more accurately than people who were told it was simple.

DAY 6

The Challenge: Lower Your Credit Card’s Interest Rate



First, transfer all of your balances to the card with the lowest interest rate. Right after you make a payment, call one of the companies you owe and tell them you want to close the account because you’ve found a better rate. (Head to bankrate.com to size up their competition.) They’ll often negotiate with you right then and there.



Another option: If your home is worth more than you paid for it, refinance your mortgage and take out the equity to pay off your credit debt. The interest rate on your mortgage will be significantly lower—and the interest is usually tax-deductible. (Remember to figure in refinance costs like points and fees.)



While You’re At It: Go on a credit and debit fast for 2 weeks; only pay with greenbacks. “Studies show that buying something with a credit card doesn’t register with your brain the way it does when you pay cash,” says Chip Health, Ph.D., a professor of organizational behavior at Stanford University. Converting to cash will make you sense the sting of forking over every penny—which is exactly what you should feel.



DAY 7

The Challenge: Save Money on Your Gym Membership



Before you fork down cash for a full month, ask if you can pay per visit. Gymgoers with monthly plans pay 70 percent more than those on pay-per-use plans based on usage, says Stefano DellaVigna, Ph.D., who studied more than 7,000 gym members over 3 years. Not sure where you fall? Use this formula:



A. Write down the cost of a monthly plan

B. Find out how much a single visit costs at your gym

C. Estimate the number of days you plan to visit next month



IF A / (C/2) > B



Then use a pay-per-visit plan. If not, consider an annual plan for deeper savings—as long as you’ll actually go all year, of course.



While You’re At It: Consider skipping the gym altogether. You can build a complete home gym with $1,000—which is about what you’d pay for a full year’s membership anyway. Here’s what you need:



TRX Pro Pack

$190, trxtraining.com



Swiss exercise ball

$40, theragear.com



York adjustable bench

$400, performbetter.com



Perfect Pullup Basic Bar

$20, perfectonline.com



Bowflex SelectTech 552 dumbbells

$400, bowflexselecttech.com



DAY 8

The Challenge: Clean Up Your Grooming Habits



If you’re wasting your shower products, you’re—you guessed it—throwing money down the drain. Not just that, using too much is bad for your skin. Because of the way skin-care products are formulated, you’re doing more harm then good by slathering on lotion, says Manhattan dermatologist Francesca Fusco, M.D. Here’s how big your dollop should be.



Gel: Penny

Excess gel can aggravate your skin, leaving you prone to acne around your hairline.



Shampoo: Nickel

Squirting on too much shampoo causes flaking and itchiness because your hair is stripped of its natural oils.



Conditioner: Dime

Excess conditioner clogs hair follicles, creating product buildup and causing flat hair.



Shaving cream: Half-dollar

Lay it on too thick and you’ll require multiple passes of the razor, which irritates skin.



Body wash: Quarter

Use too much and you risk dry, itchy, irritated skin.

DAY 9

The Challenge: Cut Your Prescription Bill in Half



Ask your doctor if your drugs can safely be split in half and if he’d double the dosage. Regardless of the dose, drug companies charge the about same price. Use a pill splitter, which will run you less than $10. One study found that splitting is as effective as swallowing a whole lower-dose pill.



While You’re At It: Ask your pharmacist if there’s a generic version of your prescription.



DAY 10

The Challenge: Enroll in a Roth IRA



If you’re eligible for a Roth IRA but don’t have one, today’s your day to sign up. With a Roth, you pay taxes now on the money you’re putting toward retirement. The perk: Once you’re kicking back in Boca, you don’t pay a dime to cash out. It’s a small tax hit today, yes—but a huge tax break when you retire. Enroll if you’re single and earn less than $120,000 a year (or married and filing jointly and earn less than $177,000).



Already have a retirement account? You can convert your traditional IRA into a Roth IRA. “The amount you convert will be taxed, but you can spread the bill over 3 years,” says Paul Burkemper, president of the Burkemper Group in St. Louis.



DAY 11

The Challenge: Prioritize Your Debt



Don’t assume that “bad” debt like a car loan has to be paid off before “good” debt like your mortgage. Let’s assume you have a 30-year, $250,000 mortgage at 6.5 percent interest. You also have a 5-year car loan for $25,000 at 8 percent interest. If you have an extra $1,000 to put toward the principle, pay down your mortgage. Because the loan amount is higher, you’ll save $5,890 over the life of the loan vs. only saving $470 in interest on the car loan.

To avoid other common money mistakes, learn The Truth About Money.



DAY 12

The Challenge: Hone Your Negotiation Skills



Start by choosing the right store to stage a negotiation. A low-volume boutique store will be more likely to have some leeway than a high-volume big box. Low margins correlate with lower prices and high volumes, so the megamart has less price padding.



1) Arrive armed with info—an ad showing another company’s deal, prices from other stores or venders. This reminds the salesman that you can take your money elsewhere.

2) Don’t compete. Start with, “I like this, but what can we do about the price,” advises Holly Schroth, Ph.D., of the University of California at Berkeley Hass School of Business.

3) Make it sound like a good deal to them. Offer to buy in bulk for a discount. They sell more product, and you save—as long as you’ll actually use it.

4) Carry a wad of bills. Then ask if there’s a cash discount. You might get around 10 percent off. Sure, the guy might not be completely frank with the IRS about your deal, but that’s his business, not yours, right?

5) If you’re at an impasse, thank him for his time, give him your phone number, and tell him to call you if anything changes. Walk away. You might receive a good offer on your way out or a call the next day.



DAY 13

The Challenge: Talk Down Your Cell Phone or Cable Bill



Follow this step-by-step plan to lower this monthly money-suck.

1) Research how long you’ve been a customer with the company and how much you’ve spent. Mention that when you call customer service. Then say you’d love to stay a loyal shopper.

2) Don’t demand a discount. Instead, show vulnerability. “For some people, confessing a bit of uncertainty can be disarming and more persuasive,” says Zakary Tormala, Ph.D., of Stanford University.

3) Avoid “you must”—he might assert his freedom by refusing. Stay friendly. Use the rep’s name.

4) If he still says no, ask for a manager. Make the request before you really annoy the rep, or else the manager could start talking with you on the defensive.

5) Threaten to cancel. The manager might lower your bill or throw in upgrades.



DAY 14

The Challenge: Learn Where to Spot a Deal—Anywhere



Shop smart to save big. Here’s how to hunt down the best deals—no coupon clipping required.



At a restaurant

Order an appetizer. Restaurants like Olive Garden and Applebee’s supersize their portions to create the perception of value. Many now offer as a starter what was once considered an entrée, explains Collin Payne, acting director of the Cornell University Food and Brand Lab. By ordering an app, you’ll reduce your calorie intake and still feel full—while cutting costs.



At the electronics store

Browse around the front of the store, right inside the main door. That’s where big-box tech stores like Best Buy showcase their deals.



At the clothing store

Cut to the corners. Retailers place the items with the greatest discounts in the rear far corners of the store.



At the supermarket

The best bargains start above your head and below your waist, says Paco Underhill, the founder of Envirosell and author of Why We Buy: The Science of Shopping. Avoid the display cases at the ends of the aisles. The position says savings, but these products are rarely discounted.

DAY 15

The Challenge: Raise Your Rates



Employees have to ask for a raise to get paid more. But the self-employed often forget that. If you work for yourself, raise your rates if you haven’t done so in the past 6 months. Write a letter to each of your contacts. Just blame it on the increased cost of doing business. Half won’t blink an eye. Another quarter will try to negotiate; reach a compromise with these folks. The remainder could threaten to leave you. Try to compromise, express your desire to keep them as customers, but don’t back down. They’ll stay on board if they’ve been happy with your service and product.



DAY 16

The Challenge: Recruit Your Team



When you were younger, an off-the-rack suit was acceptable. But by the age you have a professional tailor your suits, you need a team of professionals helping you manage your money. Here’s who you want on your side.



1) Accountant. Insist on a CPA, not a part-time preparer. He should provide you with client worksheets and must be willing to represent you before the IRS. A messy office is a deal-breaker—you don’t need any help losing your receipts.



2) Lawyer. A good lawyer should cost around $200 to $300 per hour (less if you’re in a rural area, more if you’re in a big city) and will charge in 15-minute increments. If he uses value billing, which means he decides each job’s worth, run the other way. Look for this key trait: When you ask a question, does he answer it precisely? Lawyers need to be good listeners.



3) Financial advisor. Financial advisors are the life coaches of the money world: few have legitimate credentials, even though plenty of them claim the profession. Pick a money mentor from a field that has licensing requirements and a clear code of conduct. Think: lawyer, CPA, or security broker. He should offer flat-fee advice, ask you lots of questions, and speak in terms you can understand.



DAY 17

The Challenge: Learn to Resist Impulse Purchases



You’re hard-wired to want stuff—and to want it now. Anticipating a purchase triggers a larger release of the feel-good hormone dopamine than actually receiving your new toy, brain studies show. To resist this instinct, don’t make an important choice when you’re tense or fatigued. You’ll be more likely to make a rash decision, says executive coach David Krueger, M.D., author of The Secret Language of Money. And give yourself time on big purchases—for example, a rule that you’ll wait at least a weekend to buy anything more than $100.



DAY 18

The Challenge: Take out Your Calendar and Circle a Day to Ask for a Raise



Asking for a raise isn’t the easiest way to earn more money, but it’s certainly an obvious one. If you’re a valuable employee who’s been so busy working that you haven’t had time to form a salary strategy, you’re probably being under-funded. Time to make a plan.



Why It’ll Work: Because you’ll have a plan. Every man thinks that his contributions to the company are apparent, but the truth is, your boss has likely forgotten. It’s up to you to remind him. Make a specific, detailed list of your accomplishments, focusing on how you’ve boosted the top line while cutting the costs of doing business. Remember to also focus on how you’ve helped grow the business, develop new projects, or implement new strategies.



While You’re At It: It also never hurts to do some research to find out the industrywide salary ranges for your position—and hey, you can always spin the numbers to wind up on the low end. This serves two purposes: it shows what other companies are willing to pay you if you leave, and also gives your boss some idea of what he’d have to do to replace you.



DAY 19

The Challenge: Stow Your Money in a Savings Account



There’s no point in leaving more cash than you what you need to use every month in your checking account. "You’re letting your money be lazy," says Dan Candura, a certified financial planner at PennyTree Advisers, in Braintree, Massachusetts.



Why It’ll Work: By putting 3 to 6 months’ worth of emergency funds in a high-yield savings account (such as those from ING Direct, Capital One, or HSBC), your money will have a chance to earn interest. But by keeping a month’s worth of expenses in your checking account, you’ll ensure that you’ll have enough that’s required to avoid minimum-balance fees



While You’re At It: If you’re always in the black at the end of each month, consider scheduling a recurring automatic transfer to a mutual fund.

DAY 20

The Challenge: Refinance Your Home



Yes, it’s a big step, but it could pay off: Interest rates are at an all-time low, so you’ll want to lock in a fixed number for as long as you can.



Why It’ll Work: Lenders recognize that interest rates can’t drop much lower, so they’re betting that they’ll go up in the future. Choosing either a 15- or 30-year plan will guarantee that your rates don’t increase years later, says Jay Suktis, assistant professor of business administration at the University of Pittsburgh. Both have their advantages: With a 15-year mortgage, you’ll not only own your house earlier, but you’ll also be paying more towards your home equity (and if you ever need to borrow money for another big purchase, you can take out a home equity line of credit). The 30-year plan allows you to keep your interest rates low—which can provide you security in case you or your spouse loses a job. You can always pay it off early; banks no longer penalize homeowners for doing so.



While You’re At It: Rethink the adjustable-rate mortgage—you might save money in the short term with an ARM, but you’ll probably lose money when the housing market rebounds.

For the latest research into health, nutrition, fitness and sex, visit Men's Health News every day.



DAY 21

The Challenge: Think of a Killer Concept for Your Blog



It’s not always easy to make supplemental income these days, but if you have a blog, you have a chance to make some extra (and easy) cash. But here’s the catch: You need a conceit that will attract advertisers, preferably one makes people laugh and involves them in some way.



Why It’ll Work: Advertisers love concepts that go viral—so your best bet is to skew funny. You don’t need to post every day to maintain a following, either. Instead, you can create an entry with links to other sites that may return the favor. Once you build up a million uniques, you can pitch advertisers directly. And when promoting your blog through social media, don’t just shout, “New blog post!” Instead, encourage clicks with teaser heads, like, “You’ve got to see this!”



While You’re At It: Once you have a core audience, you can start marketing T-shirts or mugs with funny images or phrases that come from your blog.



DAY 22

The Challenge: Invest in the Stock Market



Why It’ll Work: For people who are a decade or more away from retirement, investing in the stock market has proved to be the best way to grow wealth. But most investors can't match the market's performance. Why? Because sell-offs freak them out. They tend to sell on the dips and then miss out on the climbs. A 2005 University of Michigan study found that if you'd invested $1,000 in an index fund in the beginning of 1963 and sold at the end of 2004, your money would have grown to $74,000. If you'd missed the 10 best days for the market over those 42 years, you'd have only $44,000. And had you sat out the best 90 trading days—just 0.85 percent of the total—you'd have only $2,700. Indeed, the market may feel like a yo-yo if you follow it day to day. But imagine that a boy is playing with that yo-yo as he climbs a steep hill. That metaphor best captures how the market has performed over the years, says Ric Edelman, the author of The Truth About Money. The gains have tended to be longer—and larger—than the dips. Edelman's koan: "Focus on the hill, not the string." In other words, stiffen your spine and keep buying through those dips. That's the only way to make the most of the climb.



DAY 23

The Challenge: Do Your Own Taxes



Why It’ll Work: Nearly two-thirds of Americans pay a professional to do their taxes. But most could just as easily—and less expensively—do it as well themselves, says Bryan Camp, J.D., a professor of tax law at Texas Tech. In a 2006 experiment, government auditors posed as ordinary taxpayers at 19 tax-prep outlets. The preparers, they found, screwed up every return. "The IRS goes after the taxpayer if there are errors," says Cindy Hockenberry, a spokeswoman for the National Association of Tax Professionals. Software like TurboTax and TaxCut makes tax preparation a cinch. You answer a few questions, hit "send" to file electronically, and wait for your refund. If you own a home or trade equities outside of a retirement fund, you'll have to drop $75 for a premium version of the software. If your financial life is still E-Z, you can use TurboTax to figure and file your federal taxes for free.



While You’re At It: Use this time to take a close look at your finances. Doing your own taxes will give you real insight into your savings and spending habits, especially if you itemize.



DAY 24

The Challenge: Schedule a Meeting With Your Boss Two Weeks in Advance



Why It’ll Work: This will give him plenty of time to pencil you in—read: he won’t be able to duck out with claims of being too busy. Your best bet is to schedule it in the middle of the week. (Mondays are too busy, and Fridays are practically weekends.) The best time to meet with him is before working hours. It lifts the meeting out of the normal routine and underlines it’s importance.



While You’re At It: Start polishing yourself up—and that goes for your appearance and attitude. Spruce up, shine, trim, and sharpen your creases. Your goal is to look better than all the rest of the schmoes in your office. Bonus: Wear a subtle-but-engaged expression—one that shows you’re a serious man working at full throttle and are committed to your goals.



DAY 25

The Challenge: Resist the Urge to Buy Something When You’re Feeling Depressed



Why It’ll Work: Shopping to make yourself feel better is often called ‘retail therapy,’ says psychiatrist Lorrin Koran, M.D., director of the obsessive-compulsive disorder clinic at Stanford University medical center. "The problem is, retail therapy doesn't work. Most of the people we see in our studies say that as soon as they get home with the item, the depression, anxiety, or sadness they're trying to alleviate returns, often worse than before."



While You’re At It: Try exercising instead. Research shows that regular visits to the weight room can lift your spirits. To find out more about how weights combat the blues, read: Curl Away Depression.

For the latest research into health, nutrition, fitness and sex, visit Men's Health News every day.

DAY 26

The Challenge: Consider Scrapping Your Plans to Save for College



College is crazy expensive, but don't go overboard saving for it, says Raymond Loewe, the owner of College Money, a college financial-

planning firm based in Marlton, New Jersey. Retirement should come first: "You can secure financial aid for college, but I haven't found anyone who gives financial aid for retirement."



Why It’ll Work: If your family income is below $75,000, Loewe suggests focusing your savings on retirement and finding as much financial aid as you can from schools. If you make more than $75,000 (or expect you will by the time your kid reaches college), aim to save at least a third of all college costs (tuition plus room and board) by the time Junior enrolls. The second third can usually be covered by current income; the last third can come from loans.



While You’re At It: For more tips on how to retire rich, read Millions Made Simple—5 money rules from Ben Stein.



DAY 27

The Challenge: Try to Appear Taller



The link between taller people and higher income levels has been well established. If you’re unlikely to grow any more, try faking it.



Why It’ll Work: Researchers at the University of Florida and the University of North Caroline have found that the vertically-gifted can make an extra $800 an inch every year. Stand when your boss is sitting (especially when you're talking); wear a long, thin, pointy tie that falls below your belt line; and raise your office chair when you have guests, says Marc Salem, Men’s Health’s mental manipulator.



While You’re At It: Wear low-collared shirts. The more of your neck people see, the taller you'll seem.



DAY 28

The Challenge: Consider Seeking a Certification



To make your résumé pop, try becoming certified. In such industries as accounting, health care, and IT, taking a few not-so-demanding night classes can boost your salary by several grand, says Lena Bottos, compensation director for Salary.com. A certification almost always pays off more quickly than an advanced degree, says Nemko.



Why It’ll Work: Everyone has unique skills, but some are more useful than others. Ask yourself: Are you a hard-core techie who plays well with others? Are you a salesperson with a head for spreadsheets? Find your niche, then start building your special skills. The money should follow.



DAY 29

The Challenge: When You’re Tempted to Sell Your Stocks, Buy Them Up Instead



When stocks are in the tank, your gut will tell you to bail, to move your money into less-volatile investments like bonds or money-market funds. It's human nature. It's also a huge mistake. When the market plunges—over days, months, and years—there are opportunities to make real money.



Why It’ll Work: Warren Buffett explained it years ago in an annual report, says Ben Stein. Whether a stock is priced low or high, he said, it's ownership in the same company. So when the stock market puts a company on sale, that's the best time to buy. The inverse is also true: When the market is reaching new highs, you'll be tempted to jump in with both feet. Don't. This isn't necessarily a time to sell, but assuming you're investing on your own in taxable accounts, you'll want to be buying less. Important note: If you do all your investing within a tax-sheltered 401(k) or IRA, maintain or increase your contribution level no matter which way the market's moving.

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DAY 30

The Challenge: Assess the Damage



Now that you’ve been tracking your money all month—right?—look where it went. If you notice you tend to waste money on non-necessities, there could be a hidden reason:



A 2011 study in the journal Social Psychology and Personality Science shows that people use credit cards to boost their self-esteem. In addition, research from clinical psychologist Sara Wedeman, Ph.D., found that people without money felt shame, while people with money felt pride. “So going into debt can be, at its core, an attempt to buy pride,” Wedeman says. Take a look at any nonessential purchases this month and ask yourself this question: What were you really trying to buy? Access to privilege? Acceptance of your wealthy friends?



While You’re At It: Lose your early adopter status. Sure it felt cool to be the first guy in your circle to have Siri. But by picking up the previous generation technology right after the new models hit, you can save up to 25 percent since stores are trying to clear out their inventory.

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