Last year, we all tightened our belts and crossed our fingers that the economy would improve. But it's 2012 and, despite negligible falls in inflation and energy prices, times are just as tough.

Household bills are still cripplingly high, while base rate remains in cryogenic sleep. So if you're going to make the most of your money this year, it's going to take more than just being frugal - it's time to get savvy with your cash.

Restructure your spending

How much interest does your current account earn you? Many banks pay 0% on credit balances, yet we continue to pay in our entire annual wage getting absolutely nothing in return.

But just by reorganising day-to-day finances like these, you could generate an extra £450 a year, according to MoneySupermarket research - on exactly the same salary.

Let's say you earn £1,500 a month, after tax. Using Santander's Preferred Current Account, which pays 5% AER on credit balances, would earn you £75 in interest during 2012.

Next, and this isn't as tricky as it sounds, leave that £1,500 in the Santander account and make all your purchases on an American Express cash back card. The card pays 2.5% cashback for the first three months (on spend up to £100) and 1.25% after that.

If you used up to the maximum £100 over the first three months then spent £1,500 a month on the card over the remaining nine months (at a rate of 1.25%), you could earn yourself a further £243.75.

This brings your total to £318.75 but there are further benefits too.

When you switch from your existing bank to Santander's Preferred Current Account, you'll be welcomed with £100 cash back. Do it through MoneySupermarket and you'll get an additional £30 as an Amazon Gift certificate. This extra £130 brings your total to a whopping £448.75.

Of course, it's important to remember that this arrangement only works if you ensure you pay off the card balance every month and always keep your current account in credit, warns Kevin Mountford, MoneySupermarket's head of banking.

He said: "Anyone thinking of doing this will have to be fully aware of the terms and conditions. Not paying in the minimum amount to a current account, or making a late or missed payment on a credit card balance would lead to interest being charged, effectively cancelling out any cash back benefit you have earned."

Do your homework and find the lowest price

Whether you are buying DVDs or tyres for your car, the chances are the first place you look won't be the cheapest. But the age of the internet allows us to compare prices from a range of retailers in just a couple of clicks - so there's no excuse for not shopping around for purchases.

Visit our shopping channel and start saving today.

For example, a Sharp 32" LCD television could be as much as £60 cheaper by going for the lowest price.

According to web analysts Experian Hitwise, around 2.18billion web users visited online retailers in December 2011, so you'll be in good company.

Look for further discounts

Even when you uncover the lowest price for what you are looking for, don't buy it yet! First, find out if you can get it even cheaper.

Vouchers and discount codes have exploded in the last few years, with retailers falling over themselves to give us money off, or throw in other extras to fight for our business.

Check our vouchers channel to see if you can get a discount on what you're buying. For example, you can currently get 40% off when you spend £35 online at Domino's Pizza. If you spend £35, that's a saving of £14.

It's also worth signing up for your favourite retailers' mailing lists to get first word on any promotional discounts they might be offering.

If all else fails, go into the store and find out what discounts you can get with a bit of haggling.

If discount-hunting is good enough for Duchess of Cambridge, Kate Middleton (spotted grabbing some bargains in Chelsea during this year's January sales) it's good enough for the rest of us!

Keep tax to a minimum

Be sure to make full use of all tax-free allowances you are entitled to. If you don't already have one, this means opening an ISA for your savings.

Each tax year, the government lets you invest a certain amount of money into an ISA (Individual Savings Account) and will not charge tax on the interest earned. For the current tax year (April 2011 to April 2012), you can stash away up to £10,680.

You can choose to put this whole allowance into a stocks and shares ISA or up to half of it (£5,340) into a cash ISA, and the rest in stocks and shares.

For the next tax year (April 2012 to April 2013), you will be able to invest a greater £11,280 in a stocks and shares ISA - half of which (£5,640) can be held as cash.

For existing customers, Nationwide is offering a market-leading Online ISA, issue 2, which pays an impressive 3.10% interest, tax-free. This includes an initial 12-month 2.10% bonus, but your cash isn't locked in. This means, at the end of the year you can shop around for a better-paying ISA, so long as the provider accepts transfers in.

Alternatively look at Virgin Money's Cash E-ISA which offers a variable rate of 2.85% tax-free with no upfront bonus.

Read more in Jessica Bown's article about how cash ISA's work.

Slash your fuel bills

This year, cut your energy bills down to size by making sure you're on the very cheapest deal. Ofgem says that most people have never switched energy supplier and, according to MoneySupermarket research, this oversight is costing us Brits a collective £3.5billion - or £282 a year per household.

Find out how much you could save by visiting our gas and electricity comparison channel.

Getting your gas and electricity from the same supplier will earn you a dual-fuel discount. Managing your bills online with an online energy tariff will also save you money, as will paying by direct debit.

So, if you are sitting reading this with your room heated by one company, your computer powered by another, you are paying monthly on a standard tariff and not managing your bills online - you've got some work to do.

Take what's rightfully yours

Sometimes it's not a matter of getting discounts, but getting what you are entitled to.

For example, free bus passes are available from the age of 60 (if you were born before April 6, 1950). If you were born after this, you will qualify when you reach pensionable age.

Pensioners may also be eligible for the tax-free Winter Fuel Payment to help towards the cost of energy bills during the colder months, which could save up to £400 a year. To find out if you qualify, click here.

If you're a first-time buyer, the stamp duty concession (which ends March 24 this year) means you don't have to pay the 1% levy on the purchase of property up to £250,000. With the average UK house price at £241,261 that could mean a saving of as much as £2,414.

The best things in life are freebies

And finally, have a look what people are just giving away for free. Once again the web is a great resource here. Check out websites like tasterlab.com, which points you in the direction of free activities you can try for free as a trial.

And you wouldn't believe some of the stuff people are willing to give away for free, just because they want rid of it. On freecycle.org you'll find everything from pianos to sofas in great condition that you can drive and collect for a handshake.

The banks are offering freebies too in the battle to win our current accounts. Halifax is offering £100 to anyone who switches to one of its current accounts before February 19 and First Direct is offering £125 to customers who switch to its 1st Account.

Take action now!

So there you have it - you can save hundreds of pounds this year, just by making a few small changes to your spending and saving. With the web at your fingertips, there's no reason why you can't get started today and begin making your cash stretch as far as possible in 2012.

Please note: Any rates or deals mentioned in this article were available at the time of writing.