What do people do when the economy is down? They start looking for ways to save money.

It’s important to point out that tactic works well for everyone these days regardless of income. After watching so many people lose jobs, watch investments decline alarmingly in value and observing the general lack of consumer confidence, being frugal is just a good move these days. Yes, a good number of us are making out just fine, but we should all be aware that can change in a hurry.

For both people looking to save cash immediately and those who just want to reduce expenses and save money for that rainy day that could come in the future, reducing expenses on more common items is a good move. Think about it for a second. Yes, it is very possible to refinance that mortgage or perhaps even reduce car payments by refinancing those loans or trading for less expensive vehicles, but we’re talking about going through a long, involved process to reach either of those goals.

It makes a lot more sense to start small – to take simple steps to reduce how much money we spend on more common items. A few small, simple steps can result in immediate savings, after all, so why not start there? If you want to reduce those mortgage and car payments, those are great long term goals and should be treated as such. Reaching those goals can take some time, but cutting smaller expenses can be done quickly.

Want proof? Just click the following link to watch what you spend on coffee. Just head to that site and you’ll find coupons and other ways to reduce your expenses in that area. You won’t give up a thing and you’ll save a buck or two. How’s that for a deal? Once you start to take a look at the smaller items such as coffee, you can reap the benefits immediately and then make those long range plans that will get you closer to your goal of cutting your expenses.

Starting with small ways to save money can also be a good psychological trick. Think about it – cutting expenses on large, expensive items is more than a bit daunting and complicated. It would be far too easy to get involved in such a project and then give up on the whole notion of economizing completely once realizing the work involved. Human beings, see, like to see immediate progress when they start a project. Taking care of the little things provides that progress, thus encouraging people to take on larger, more complex projects and save even more money.

Makes sense, doesn’t it?