I was listening to a presentation recently that mentioned the U.S. savings rate in October 2011 was 3.5%. Not too impressive, when you consider that many other countries – think China and Japan – save over 20% of their income annually. So why don’t we?

First, Americans haven’t historically been incented to save. For example, the IRS allows us to deduct qualified loan interest, which is an incentive to borrow — not to save. Second, a strong economy (remember that?), meant that, economically, things just got better and better, so saving wasn’t critical.

With national deficits at record highs, it’s time for each of us to ramp up our personal savings efforts. Here are three things you can do to get started on the right foot.

1. Set a Goal

It doesn’t matter that you may not have decided exactly what you want your life goal to be. What is important is that you choose a specific amount you want to have tucked away and then purposefully put some of each paycheck aside to help you get there. As your balance grows, so will your peace of mind, because you’re building a war chest to protect you from life’s ‘unforeseen’ circumstances. Start small if you need to, and work up to 10% of your income.

2. Open (or add to) a Roth IRA

When thinking about your long-term savings, think about a Roth IRA. It’s different than a traditional IRA because even though your contributions are not tax-deferred, your withdrawals can be taken tax-free. And, if income-tax rates rise, some tax-free retirement income could make a big difference! In 2011, singles can contribute to a Roth IRA if their annual income does not exceed $120,000, or $177,000 if they’re married. In 2012, the amounts are $125,000 and $183,000 respectively. (Visit with your tax advisor to discuss your tax situation.)

3. Plan for your Retirement on Your First Day of Work

Paying off debt is always a smart strategy, but don’t forget your long-term savings goal. If your employer offers a 401(k) plan and matches a percentage of what you contribute, try to save at least enough to capture the match, otherwise, you’re walking away from free money! And, don’t forget … it’s ok to start small, say 3% of your gross salary, and increase your contributions when you can. Compounding will do the rest.

Are you currently saving? Please stop in and visit with us … we have the tools to get you started on the right track for success.