In a time of recession such as we are all undergoing, it is important to use whatever limited cash resources you have in the wisest way possible.  It may be that things will go even worse.  It also may last longer than the experts are predicting.  The wise course is to be ready for whatever comes.

An important factor is to make sure that you are getting the maximum bang for your buck.  It is worth looking carefully at even small improvements.  An old British saying is relevant here:

Take care of the pence and the pounds will take care of themselves.

The same sentiment is expressed in a Scottish version:

Many a mickle maks a muckle.

A CNN article this week is worth reviewing since it offers 20 money-savers that add up.  They are all worth considering but here are four that particularly caught my eye:

• The leak: Paying bills by snail mail.
• The fix: Save time and money by signing up with the billers’ customer-service departments to have your bills paid by credit card or automatic debit; payments will be documented on your monthly bank statement.
• The leak: Paying the minimum on credit cards.
• The fix: Savings accounts earn little to no interest, so dip into them to pay off your balance. If you don’t have savings, pay double the minimum and slowly increase your payments each month.  Pay off higher-interest credit cards first, and never skip a payment, which can result in a late fee of $35 or more and an increased rate on all your credit cards.
• The leak: A cell-phone plan that doesn’t match your needs.
• The fix: On average, according to the consumer research firm J.D. Power & Associates, cell-phone subscribers use only 64 percent of the minutes they pay for.  If you’re still under contract, call your cell-phone company and ask it to analyze your usage.
• The leak: Letting the water run.
• The fix: Turn off the tap while you’re brushing your teeth or shaving — every minute the water flows wastes up to 2 1/2 gallons, according to the Environmental Protection Agency.  Run full loads in washing machines and dishwashers.

Perhaps you should do a similar review of what you do each day to make sure that you are not inadvertently allowing dollars to leak away without you getting appropriate value for them.  It is not a question of being a Scrooge.  It is just avoiding needless ways your money may be working less effectively than it could.

By the way, if you are a student then we would recommend Use Your Cash Wisely: 10 Major Money Tips.  It’s another good check list of what is important in handling your cash resources well.

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