There is no doubt we are living in times of unprecedented economic chaos. One response to this situation is take action today to protect our economic viabilty in the future. So what can be done? The answer is simple: increase cashflow and decrease expenditure. In today's economy, saving money is more important than ever. This article suggests 5 effective strategies for paying down debt and increasing your cashflow.

1. With all the money you're saving you're likely to want to go on holiday or buy something, so don't forget - EVERYTHING is negotiable; from whiteware, holidays, to vehicles, credit card and mortgage interest rates to moblie pay plans. Don't be embarrasssed to ask. What's the worst that can happen? They say no. Big deal. Make it a habit to ask if there is a discount. You'll be surprised at how this quickly becomes fun.

2. What habits do you have at home that are secretly costing you money? Do you have energy efficient appliances? Do you maintain them properly? Vacuum your refrigerator coils. Keep your oven clean. Keep the lint trap on your dryer clean. Don't let fabric softener clog up your washing machine. All these things will reduce the chance of appliances breaking. How often do you run the dishwasher?The washing machine. And is it fully loaded? What about your light bulbs? Energy efficent ones can save you literally thousands on your electricity bill each year. As your old light bulbs blow, replace them with energy efficient ones. And don't forget to turn off lights in empty rooms. What about aircon? Setting your AC temperature at 78 to 80 degrees can save 7 to 10% from your bill.

3. Do you really need to drive in to work? How much is petrol costing you each week? Wear and tear on your car? Is it possible to car pool or take public transport? This could significantly reduce your transport costs each week. Just imagine, you'd save on parking ($10 per day) and petrol. I know I personally reduced my transport costs by 30% by taking the bus just twice a week. This resulted in an extra $30 in my pocket. If you really must take your car are you running it fuel efficiently? Check your tire pressure once a month. This simple maintenance check can add up savings at the gas pump! Drive at the speed limit.Speeding 10 mph over the speed limit could cost you 18% more in gas. Even better though, if you car pool and reduce your use of your car the planet will love it too.

4. Ask yourself, what daily habits do you have that cost you money unconsciously? For example, do you really need that Starbucks coffee? How many do you have a day? 1 or 2? Do you read the newspaper or buy a magazine each day? Why not start reading it online? What about that can of coke or chocolate bar or the deli lunch? Does your husband or wife have similiar habits? These 'habits' actually cost most couples anywhere from $6-$25 every day. That's upto $125 per week or $6500 per year. I'm not saying to become a miser, but a bit of personal organisation - such as making lunch instead of buying it, choosing the filter coffee over the Starbucks can really add up. What about your entertainment habits? Try entertaining at home as opposed to going out to restaurants, pubs and cafes. It's way cheaper and you could save yourself around $30 per week. Finally, do you smoke? How about quitting or cutting back?...

5. What about your fixed costs? Mortgage, rent, banking fees, insurances? Are you using the most efficient structures , companies and accounts? You can avoid costly transaction fees by only making transfers under your personal bank. These $1.50 fees add up quickly and are easily avoidable. It is absolutely amazing how small savings on individual aspects of your finances can add up. For example, what if you could save just $5 per week from each fixed cost area? That amounts to around $20 per week or an extra $1000 per year. Not bad for those hidden costs.

With all the money you'll save, you can invest it or count it obsessively. It's amazing what you can save with a little bit of thought, and a lot of imagination and taking action. Being frugal does not mean being cheap! It means being economical and avoiding waste. So, protect and consolidate your financial position and you'll reap the benefits for many years to come.