UTF-8 has been brought up here. I strongly encourage you to read below article before going that route. I.e., if you need to go outside your collation's normal character set and it is space saving you are after, then use Unicode and some compression option.
One nasty aspect, as Erland mentioned, is that you might think that varchar(20) means 20 characters. But it doesn't. And with UTF-8, you are far far more likely to encounter characters that requires more storage than what your length defined. Like räksmörgås using 13 bytes and won't fit in varchar(10). So, make sure you read below before venturing into the scary land of UTF-8: