• Give every $20 bill a second look. Before you pull out that next Jackson, think about whether you need that compact disc, flashy lipstick, bargain sweater or dinner out.

Imagine saving $20 each week for 25 years. You’d have $39,055 if you were able to get a 3 percent return each year. Or $70,384 if you were able to get 7 percent each year.

• Stick to a new car loan of four years or less. Before you take a seven-year car loan, ask yourself whether you’ll still be driving that clunker in seven years. If not, you might still owe more than the car is worth when you go to sell it.
• Shovel your snow. Cut your lawn. Clean your house. Last summer, I talked with Dave Bergman, who played with the Detroit Tigers team that won the World Series in 1984. And what was Bergman — now a financial planner — going to do after our interview? Go home and cut the grass. Great exercise, he said. And it’s also a good way to cut extra expenses, if you’re healthy enough to do the work.
• Plan for higher mortgage rates. The rates are likely to climb higher, as soon as this year. Doug Duncan, senior vice president and chief economist for the Mortgage Bankers Assn., said he expected the 30-year, fixed-rate mortgage to hit 6.5 percent or 6.7 percent by late next year. It’s now about 6 percent.

So if you haven’t refinanced yet, don’t drag your feet.

• Be extra careful with an adjustable-rate mortgage — or an interest-only mortgage.

Sure, it’s tempting to get a low monthly payment on a big house. But if the Federal Reserve pushes up short-term rates, as expected next summer, watch out.

As an example, Greg McBride, senior financial analyst for Bankrate.com in North Palm Beach, Fla., said, take a loan amount of $165,000. Assume a 4 percent initial rate on a one-year adjustable mortgage.

If short-term rates go up, it’s possible that your monthly payment could jump nearly 25 percent a year from now. We’d be talking about writing a mortgage check for $984 a month, not $788.

If rates continued to go up, you’d owe even more money. A worst-case scenario for this example: By the fourth year, the mortgage could be $1,416 a month.

“What’s the guarantee that you’re going to be able to afford that payment?” McBride asked.

The payment if you took a 30-year fixed rate now would be $981 a month.

An interest-only loan also has an adjustable-rate feature that could drive up your payments when interest rates go up.

• Pay your bills on time. Many credit cards charge late payment fees of $35 or so. Late payments hurt your credit score and lead to higher interest rates on your credit cards.
• Get an emergency plan. What would you do if you lost your job? Or what happens after a divorce or death? Don’t overlook health insurance, life insurance or disability insurance.
• Use the Internet. One bride told me that she could have paid $1,200 for her wedding dress, but she found the same dress on the Internet for $900.

Shop around for everything.

• Don’t expect miracles. It’s tough to change bad habits. So bag your lunch twice a week if you don’t think you can do it every day. You can save money with small steps, too.
• Don’t borrow to the max. Just because someone is willing to lend you the money doesn’t mean that you can afford the loan.

The more you borrow, the tougher it is to pay back.

• Shop carefully before you consolidate your debt. Stay away from costly upfront fees.

Visit www.ftc.gov for more information on choosing a credit counselor, understanding a credit report and knowing the rules of fair debt collection practices.

• Don’t spend this year’s raise. Save it in a 401(k). Or buy U.S. savings bonds through payroll deduction. And, please don’t spend what you think you’ll get for your next three raises.