If I told you I could teach you to be rich, would you give it a try?

A new Web site tells consumers there are two levels to control when it comes to money: making more (revenue) and spending less (costs). Most Americans only think about cutting costs, resulting in frugality websites that frantically try to out-do each other with the most inane and meaningless tips of all. (Kiran Sood/ MEDILL)

BY KIRAN SOOD- MEDILL NEWS SERVICE

With the sea of money saving tips and tricks out there, it is not hard to find advice on how to stretch your dollar these days. How do you distinguish between the tips that are guaranteed to fail and tips that will actually do the trick?

Ramit Sethi, author of personal finance blog iwillteachyoutoberich.com, offers what he calls an innovative new money saving method – the “CEO” method.

The biggest difference between his personal financial advice and others is that he acknowledges right away a common fear among consumers – telling people that saving money does not mean depriving oneself, nor does it mean stopping all spending.

The process is as follows:

Cut costs (what makes up most frugality tips)

Earn more (the author says anyone can do this)

Optimizing your existing spending (for example, by negotiating your car insurance)

Disgruntled with typical money saving tips, Sethi asks consumers to think like an Indian would. For those that don’t know, that means being somewhat of a scrooge with your money.

“I hate most frugality tips. I hate frugality because most Americans [are terrible] at frugality. We spend more than we make,” Sethi says. “We’re terrible at deferring our immediate wants and investing for the long term.”

Sethi’s approach targets the psychology behind spending, aiming to create a lasting behavioral change. Frugality is not enough to create a lasting impact or a real savings difference. The key is conscious spending – making a plan on how you want to spend money. When you spend consciously, you won’t feel guilty when you go out, as it is an explicit part of your goals.

For a monthly price of what you would pay for lunch today, all these tips and techniques can be yours. The site promises to pay back big time in savings, or your money back, guaranteed.

Tags: personal finance, recession, saving