While Americans want to pay off debt and save for retirement, they are not doing enough to ensure their future comfort.

In a survey of 1,000 Americans by the Million Dollar Round Table (MDRT), 30 percent identified paying off debt as their top financial priority. Yet only half of them would use extra income to reduce that debt. Further, 76 percent say they feel comfortable with their knowledge of retirement saving, but an alarming 35 percent aren't contributing to 401k's, IRAs, or any other form of retirement investing.

"Financially speaking, Americans are living with a false sense of security," contends John Putnam, a financial planner and member of MDRT. "Despite the knowledge and will, Americans are jeopardizing their futures by focusing primarily on the short term."

The survey revealed that more than a third (38%) of those whose top priority is paying back debt believe they will always be in debt. Still, 72 percent of those who foresee continual debt predict improved financial situations in 10 years.

"Americans carry $1.7 trillion in consumer debt with more than $700 billion of that on plastic," says Putnam. "This says that we have accepted debt as a way of life. We give into our immediate spending desires too easily, and that certainly will come back to haunt us if we don't take control of our finances."

A survey conducted by Prudential Financial, Inc. in 2003 found that 79 percent of pre-retirees are not as financially "fit" as they should be at a critical stage of preparing for a secure retirement.

"Too many of those polled are not financially ready to retire comfortably," said Judy Rice, president of Prudential Investments. "In fact, when rating their financial health, a mere 21 percent are considered to be in 'excellent' shape. The rest are not as fit as they should be, including a significant 34 percent in outright 'frail' financial health."

The study, using a 16-question behavioral assessment tool, revealed other worrisome trends, including:

• 76% of pre-retirees have either not established or not updated a formal investment plan.
• Half of those polled have not set clear goals on how much they will need to save to retire comfortably.
• Slightly more than one in four pre-retirees between the ages of 50 and 54 do not contribute regularly to retirement savings programs.
• Almost half of those polled worry they may have to work at least part-time during retirement to make ends meet.
• Nearly two-thirds find today's investment information confusing and often contradictory, and 45 percent admitted that they feel less comfortable making investment decisions in today's market than a few years ago.

If this all sounds like where you are at, here are some tips to help you match your actions with your ambitions:

• Make a plan. The first step to financial control is a plan. Be aware of what you own and what you owe.
• Maintain both a short-term and long-term vision. The goal of a sound financial plan should be long-lasting security, not instant gratification. Short-term goals need to be part of the long-term plan.
• Put your money where your mouth is. A plan, to be successful, requires action. A plan without action is a dream. Action without a plan is confusion. A good plan combined with action equals success.
• Understand the difference between good and bad debt. If you can eat it, drink it or wear it, it's bad debt. If it adds to your financial worth (such as a home or higher education), it's good debt. Paying down bad debt should be the top priority.
• Learn to say no. The most important step to paying off debt is not to create more. The goal is to eliminate, not accumulate.
• Don't say no to free money. If your company offers a retirement plan, contribute the maximum. Not only will this lower your taxable income, but also many companies have a matching program. Retirement should be a part of every American's financial plan regardless of age.
• Consider a coach. Don't be afraid to consult a financial planner. The economy has many people paralyzed in fear, and a financial planner can be a valuable resource.

When it comes to retirement savings;

• Know your retirement needs. Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income-lower earners, 90% or more - to maintain your standard of living when you stop working. Understand your financial future.
• Don't touch your savings. Don't dip into your retirement savings. You'll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan.
• Start now, set goals, and stick to them. Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement saving a high priority. Devise a plan, stick to it, and set goals for yourself. Remember, it's never too late to start. Start saving now, whatever your age.

Perhaps the most important step one can take: Don't be intimidated. Financial freedom represents a journey that requires education and patience.

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