had created a financial plan. Some survey respondents did so on their own, while others used the services of a financial planner. Though some might be intimidated or even scared to institute their own financial plans, it can be done. For those who are especially hesitant to develop their own financial plans, financial planners can help you define your goals and make those goals a reality. The benefits of financial planning are numerous, helping men and women build better financial futures. • A financial plan forces you to define your goals. One of the biggest advantages to financial planning is it forces men and women to define their financial goals. An effective financial plan should consider both short- and long-term goals. If you hope to one day own a home, a financial plan can help you figure out how quickly you will own that home. A good financial plan also can help you map out a course for retirement. Ambiguity with respect to your finances is potentially dangerous. Saying you want to retire at 60 and developing a plan to make that happen are two very different things, but the latter can make it happen while the former won’t get you anywhere unless you take action. Be as specific as possible when defining your goals, and recognize that, depending on when you are making your financial plan, you might need to reassess those goals if they are not realistic. • A financial plan can help you curtail your spending. With a financial plan in place, you’re less likely to waste your money on frivolous things. Without a plan, you’re more likely to treat money as disposable, putting your financial future in jeopardy as a result. A careful examination of your financial situation can shed light on areas where your spending is excessive. A negative cash flow, which occurs when there is more money going out than coming in, has never been a part of a successful financial plan. Correcting such a situation, which is often accomplished when people establish a financial plan that trims excessive spending, can go a long way toward securing your financial fu- 8==FI;89C< DFIK>8>< =IFD G8>< (( their credit cards, and financial experts recommend using less than 20 percent of available credit to maintain a strong credit rating. • Don’t bluff on loan applications. Some borrowers might be tempted to inflate their earnings on home loan applications, including counting overtime or bonuses they haven’t yet earned when listing their annual income. Borrowers can expect lenders to request documentation of any extra income, including bonuses, so applicants should avoid including additional income on their applications unless they can prove it. Applicants also must avoid hiding K<:? GLI:?8J< (* products are usually covered by very good manufacturers’ warranties. Products like PCs, smartphones and tablets usually have a very long life. There’s a better chance that new software will come out or a newer generation of your 8LKFDF9@C< =IFD G8>< (, • Buy a used car. Buying a used car may not give buyers the initial excitement of driving off a car lot behind the wheel of a brand new vehicle, but it might prove quite exciting for your bank account. Revisiting a study they conducted in 2001, in 2013 experts at automotive Web site Edmunds.com examined three different financing methods and the cost of each over a six-year period, which the global market intelligence firm Polk estimates is the average car ownership period. The study examined the costs, including interest rates and fees, of leasing or buying a 2013 Honda Accord EX and buying a used 2010 Accord EX. The total cost of buying used after six years was $20,960, while the cost of leasing was $24,768 and the cost of buying new was $28,330. Buying used even saves buyers money when past issues on their applications. Banks performing their due diligence will eventually discover any past problems, so applicants should be straightforward from the start. Applicants concerned about their earnings should know that it’s acceptable to include information about assets such as retirement plans and savings even if those funds don’t figure to be used to pay the mortgage. • Make a substantial down payment. Lenders look fondly on borrowers who can afford hefty down payments, feeling that such borrowers are less likely to default on their loans. In addition, the larger the down payment, the less the monthly mortgage payment will be, saving borrowers a significant amount of interest fees over the course of the loan. — Metro current item arrives before the one you own breaks down. • Sell your own used stuff. You can offset the cost of buying a new device by clearing out your own outdated merchandise. Companies like Gazelle will buy used phones and other electronics. While you may not make a fortune, a few dollars here and there can help fund upcoming purchases. — Metro factoring in equity. Of course, leasing saves drivers the cost of maintenance and repairs, which can be considerable when buying used vehicles. However, an older used car won’t cost as much to insure as a vehicle that is being leased or financed. • Drive less. Of course, the easiest way for automobile owners to trim the costs of owning their vehicles is to drive less. Though vehicle manufacturers have improved fuel economy in recent years, driving less will save money on fuel, the cost of which hinges on a host of factors, including petroleum demand and economic conditions. Such factors may cause a dip in fuel prices one day, but a sharp increase in price the next day. Regardless of those fluctuations in fuel prices, drivers who can cut back on their driving are certain to save money. The cost of vehicle ownership is on the rise. But motorists who rely on their vehicles can still find ways to save money. — Metro G8>< )* =IFD G8>< ) ture. • A financial plan can be motivational. Another significant and often overlooked benefit to financial planning is how such planning can act as a motivator. A good financial plan will include certain measuring sticks, such as having debt paid off by a particular date or a certain day by which you hope to deposit a certain amount of money into your savings. These measuring sticks often motivate men and women to be more responsible with their money, and many people find living up to short-term financial goals to be very rewarding. • A financial plan makes better use of your money. Even if you don’t have any negative spending habits, a financial plan can help you make better use of the money you do have. A closer examination of your finances can often yield a host of ways to grow your money or save it. For example, you might have multiple insurance policies, some of which offer duplicate coverage. Examining each policy and removing duplicate coverage can save you money and help you spend that money in better ways. You wouldn’t pay for the same slice of pizza twice, so why pay for the same coverage twice? But unless you make a financial plan, you are unlikely to find those areas where you’re wasting money or discover the numerous ways in which your money can be better spent. • A financial plan helps you grow your money. Even if you are worried about investing or especially skittish when it comes to risk, you will need to find ways to grow your money, and a financial plan can help you do just that. The concept of inflation dictates that the dollar you have today won’t be worth as much next year, meaning you will need to take steps to grow your money if you hope to have enough to get by in retirement. A financial plan can help everyone, whether they’re risk-averse or not, grow their money. Something as simple as opening an interest-bearing account will grow your money more than if you were to put that money under the mattress. Without a financial plan that includes ways to grow your money, the money you have will only lessen in value as time goes on. — Metro Dfe\p DXkk\ij s N\[e\j[Xp# =\YilXip )-# )'(+ 9