29g is a great size. I also started out with a 29g for my first tank/system. You also don't have to spend $8-9 per pound of rock, and you don't have to have 1lb per gallon. Sand beds also aren't required, if you don't like them, you don't have to have 'em. Start by figuring out what you want your tank to be, a reef, a fish only system, etc. From there you can build your system geared to what you want to keep.
Watch the buy-sell forums for great deals on drygoods, hardware, and even livegoods. Visit a few stores around town and see their prices before you buy. Even ordering from stores a little further away can also save you some money, and offer you a greater variety of products.
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