What could you do with an extra $20, $60 or $100 a month? Now, $20 may not seem like a lot of money to some, but if you tuck that $20 away it adds up to $240 a year. Now were talking about some substantial money.

Here are 5 ways you can reduce spending and easily save $20 a month.

1. Trim 1 trip out for lunch a week. The cost of a value/combo meal at most fast food restaurants will run you $5 to $7 each. By bringing a bag lunch 1 day a week you can easily save $5 a week or $20 a month. The key is to bring leftovers or something already on hand from home.

2. Use cloth napkins and dish clothes instead of paper towels. Not only is this better for the environment, but it’s also better for your wallet. Paper towels can run anywhere from $1 for one roll to $12 for 8 rolls. Ouch!

3. Shave off $5 a week in gas. Some ways to cut down on gasoline usage are to car pool to work or kids activities, run multiple errands instead of one each day, and obviously stay home more often.

4. Cut out your $5 movie rental each week. Start utilizing your local library – many offer free dvd rentals. Another way to save is to trade movies with friends. Just make sure you return them to avoid fees at the library and damaging relationships with friends. Another option is to rent a movie at any RedBox location. The dvds are only $1 a night and many include newly released dvds.

5. It may be difficult in this trying economy, but pay your bills on time. Some companies charge $35 a month in late fees. Also, by paying your bills on time, you will have a better credit score and that will help you qualify for better interest rates saving you money.

Some of these tips are easy and some more difficult, but all are worth the effort to save you money each month. $5 a week may not sound like much, but that adds up for $240 a year for just one of the ways listed. How many more ways can you think of?

-By: Kimberly Shavatt

Kimberly Shavatt is the owner of HelpingMomsAtHome.com and Helping Moms @ Home Blog. She offers lots of hints, tips, time saving, and money saving ideas and resources for moms.