Many Americans are finding themselves in a precarious financial situation because they are not saving enough to retire comfortably or to reach other financial goals. If you find yourself in this situation, the only solution is to take charge of your financial future by saving more money. The effort and sacrifice you make now may be well worth the effort years down the road.

Many people assume that they can rely on Social Security to fund the bulk of their retirement needs. In fact, your Social Security benefits will probably be in the range of 20 to 40 percent of your pre-retirement wages. In other words, unless you can get by on 20 to 40 percent of your current paycheck during retirement, you need to save more money.

How can you save more money? One of the best ways is to have a set amount of money taken from every paycheck and automatically invested into a retirement account or savings account. Tax-deferred retirement accounts offer a smart way for you to save money for retirement. If your employer offers a 401 (k) or SIMPLE retirement plan, contribute the maximum amount allowed. In addition, contribute to your individual retirement account. The money you contribute to a retirement account can reduce your taxable income and grow tax-free until withdrawn.

To give your savings purpose, set specific financial goals. For example, it’s advisable to have an emergency fund of approximately six months’ worth of living expenses to cover any cash outlays that may catch you by surprise. Nothing can derail your financial plans faster than a series of mishaps that force you to take drastic financial measures. Other savings goals may include a college savings fund, vacation fund, or a fund for major purchases.

You should be saving 10 percent of your earnings. Seem impossible? If you took a new job at 10 percent less pay, you would get by.

Bertrand Labonte is an accountant with Ouellette, Labonte, Roberge & Allen Professional Association.