Planning is actually the process, wherein you decide how you’ll be able to achieve your goal and work accordingly to achieve the same. Financial planning is the same, only it involves your money, and goals are rather more personal.
In general, financial planning is a series of steps taken to achieve your goals both personal and financial through the implementation of a comprehensive financial plan. It implies giving direction to your accumulated resources so that you can accomplish your goals in a pre-defined time frame – along the way making adjustments if any. Financial planning isn’t a one-time thing – it’s a dynamic process. It is modified over the years so as to entwine the changing financial need and reducing the timeline of the goals. It encompasses a 360-degree view of your financial life.
How comprehensive financial planning can help?
A financial plan will help you by creating a schedule for you to follow for your goals. It helps you focus the way you manage your money and your time on reaching your financial goals so that you can do the things you want to in your life.
A comprehensive financial plan involves:
- A thorough review of your current financial situation.
- A discussion and understanding of your long-term, financial goals.
- The development of a plan including all financial products needed to take you from where you are today to where you need to be in the future.