 TITLE: What Is Financial Planning and How Can it Help Me? CONTENT: The Benefits of Having a Financial Plan\n---------------------------------------\nUnderstanding where you stand with your money and creating a plan for your financial goals is critical to your financial success. While it's possible to achieve some money goals without a financial plan, it's a lot easier when you have a clear path forward. Having a plan in place serves as helpful guidance when questions of how much to spend and how much to save come up.\nHere are some of the more significant benefits of personal financial planning:\n*   **You'll better understand your current situation.** If you don't budget or keep track of where your money goes, it's hard to know what kind of financial shape you're in. With a financial plan, you'll always have a pulse on your financial health and know what you're capable of doing.\n*   **You'll have a handle on risk management.** Having an emergency fund is essential because you never know when you'll need it. What's more, knowing which types of insurance you need—such as health, life and disability—and how much can provide some protection when things go seriously wrong. With a good strategy, you'll be able to plan for these risk management tools and fit them in your budget.\n*   **You can eliminate debt faster.** If paying off debt is important to you, part of your financial plan can include specific actions you can take to accomplish that goal as fast as possible.\n*   **You can boost other savings goals.** Depending on your goals, you may want to set aside cash for a home down payment, house renovations, a vacation and more. A financial plan can help you map out how you'll meet each of your savings goals, and give you the motivation to do it.\n*   **You'll be ahead on long-term goals.** Whether you're saving for retirement, a vacation or a child's college education, financial planning can help you understand exactly how much you need to accomplish your goal and what you need to be doing now to get there. The sooner you start this process, the easier it will be to get ahead.\nFinally, financial planning can improve your chances of achieving financial freedom. While that term can mean different things to different people, it generally means having a feeling of security and empowerment with your money. END