Today America is a nation of spenders. And unlike the perceived ideal of the house with a white picket fence, which is a broad generalization, the idea that we are a nation of spenders is not conjecture but truth. In fact, in just the two decades spanning from 1982 to 2002, the annual percent of personal savings by Americans fell from 10.9 percent of income to 3.7 percent of income. This is a startling statistic. It is startling, because it reveals that many American families will not have the income from savings that is needed to enrich their lives, and the lives of their dependents, in the future.

This problem is only compounded by tax codes that many financial observers say favor consumption over investment and saving, as well as the ease of obtaining credit.

However, all hope for a financially secure future is not lost. If the tax code and easy credit feed a national appetite for immediate gratification, the antidote is planning and controlling your spending based on discipline and restraint and establishing priorities. In fact, increasing savings and finding ways to limit spending should top any list of financial management improvements. To do so, you should annually review and prioritize your obligations and opportunities in the following order:

1. Maximize savings for retirement. This means not only setting aside the maximum possible but also taking optimum advantage of employer-based tax-deferred plans such as 401(k)s and 403(b)s. These efficient plans don’t require us to allocate funds physically.
2. Accumulate regularly planned short-term savings. Saving even a small amount—such as $25 per pay period—accumulates with gratifying speed in savings accounts or money market accounts.
3. Prioritize prompt payment of your home mortgage and real estate taxes. Mortgage rates have stabilized, so perhaps opportunities to save through refinancing have receded. However, paying early, if this can be done without penalty, will ultimately save on interest.
4. Prioritize payment of other debt, such as auto loans and credit cards. Early payment of auto loans, if penalty free, will save on interest, as will payment of more than the minimum due on credit cards. In addition, reducing credit card debt by paying off completely those accounts with the highest interest will save.
5. Live within your means. Adopting these procedures to manage both savings and spending will enable you to understand the level of your discretionary funds and make informed decisions on how to use them.

The key to formulating and following a successful financial management plan is achieving a balance that suits your personality and achieves your objective. Savers are simply those who take care of saving first, while spenders concentrate on the consumption side of the balance sheet.

The power of saving, however, should be paramount in your planning.

Tax laws allow such useful savings tools as tax-deferred retirement savings plans, education savings plans, medical savings plans and others.

Also, it is never too late to assess your current financial condition. Record and safeguard information on the location and numbers of safe deposit boxes and bank accounts, as well as the whereabouts of statements, credit card numbers and issuing company information. Inventory pertinent information for stock certificates, bonds, notes, bills, mutual funds, annuities and other investments. Include in this inventory any money expected from an employer, insurance companies, Social Security and other sources.

This asset inventory should also include real estate, with the initial buying price of residences, information on home improvements and the location of legal documents (such as the statement of closing, title insurance, deed and land survey), also vehicles and personal property. Use video or photographs to support information on these holdings and safeguard these visual materials with paperwork in your safe deposit box.

In the end, like with all financial planning, the initiative that works best for you is unique to you and your goals. Rest assured, though, that few things in life have broader economic implications for you and your family than your ability to save and plan for the future. And few things provide more significant rewards and satisfaction for your future—even if that future is a century removed from the house with a white picket fence ideal.