Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. It is a process of planning and managing your money (current finances) to meet your life/future goals. Your current finances would mean everything that constitutes your money today—income, expenses, savings, assets and liabilities. Your life goals could be buying a car, anniversaries, attaining higher education, buying a house, planning for retirement, saving for marriage/child’s education.
Financial planning is a step-by-step approach to meet one’s life goals. A financial plan acts as a guide as you go through life’s journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.