There's no denying the fact that times have been especially hard recently. Everywhere we look it seems that there is more depressing news about the economy and the credit crunch, and we all know someone who has a scare story to tell about job cuts and redundancies. Yet whilst there may be very little weight we can pull when it comes to resolving the banking crisis, there are measures we can take to regain some of our own financial power. For those feeling the pinch, you will be pleased to know that there are a number of small things you can do easily and with little effort to make your money work more effectively for you.

First things first, while it may seem like an obvious point, one of the fastest ways to capitalize on your finances is to reduce your expenses. It's a fact, even small spending addsup, so start by identifying the differences between the things which you want and the things that you truly need. Be realistic and ruthless with yourself: are the things you are spending money on necessities or luxuries? Of course, this shouldn't mean you aren't allowed to treat yourself from time to time; it's just that you will really reap the rewards in the long run if you curb outgoings on useless frivolities.

From here you can draw up an inventory of all the areas of your life that you could potentially save money in. This works like a pyramid; start with the biggest expenditures and work your way up to those less damaging costs. The real money-guzzlers are going to be things like your mortgage, bills and house insurance, so make the most of all the comparison sites available to you to ensure you are getting the absolute best deal for your money. For the majority of families, one of their largest outlays will be their car, so consider if you are using yours in the most economical way possible. Could you downgrade to a smaller, less consumptive engine, or could you save money on petrol by taking the bus more frequently?

Now for the smaller expenditures. Here the rule of thumb is simple: spend less and use less. There are many areas of our lives that only take a quick review to make us realise how much money we are wasting. From switching off the electrical items we are not using, to shopping more wisely, or sacrificing that monthly magazine subscription, if we merely consume less, we will see the benefits of this almost instantly. For those smaller must-have items, consider alternative ways to go about acquiring them. Household items and baby clothes can be handed down from friends or picked up second hand, and similarly sold on Ebay once you are finished with them.

Above all, establish a personal budget that involves some element of saving. And whilst that penny jar really does add up, this means really saving. Decide on an amount you can realistically put aside each month and arrange for a direct debit transaction into a savings account on a monthly basis. While interest rates are still low, the good news is they are certainly recovering, so take a look at providers for competitive rates that will ensure your money grows. Santander, as one example, offers are range of instant access savings accounts, and ISA accounts that could help you reach your financial goals.