STOP buying paper napkins and paper towels. I'm not kidding here.... by far one of the easiest way to save money in your kitchen is to use cloth. I do a load of laundry at least every other day (sometimes every day!)... at the end of the day you just toss all the dirtied cloths or napkins into whatever load you are doing. They are small so they don't take up much extra space or detergent.
Take a trip to your local Goodwill, Gabriel Brothers, Target, etc... pick up some cheap dish cloths, put a basket in a handy spot and use them for everything you would a paper towel. Plus some of them you can use more than once... wipe up a split glass of water... ring it out and use it again. We do have a hook on the wall by the sink where we hang the ones we use for our kids face and hands to avoid spreading germs or bacteria.
And while you're shopping pick up some cloth napkins. Fancy ones if you want your family to feel special :) Once again - they last longer, you're only using one per person at dinner (not 20 paper napkins if you're having BBQ ribs), and at the end of dinner just throw them in with your next load of laundry. Super easy and super cheap!
It's sorta like cloth diapering... you'll have that initial investment but once you get that post cost there is no additional cost until you need to replace.
Here's just a couple deals I found on Amazon:
Hemstitch Dinner Napkins White 1 Dozen- $23
Lilypad LunchMates Set of 5 Reusable Cloth Napkins - $11.95
Excello Waffle Weave Dish Cloth, Natural and Black Plaid, Set of 12 - $7.99
World's Best Dish Cloths - Set of 12 - Assorted Colors - $8.95
And if you're talented you could probably make these yourself even cheaper :)