What is Financial Planning?

Financial planning is the long-term process of wisely managing your finances so you can achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life. Remember, financial planning is a process, not a product. 

Create a Sound Financial Plan

Step 1

Establish Goals

Step 2

Gather Data

Step 3

Analyze & Evaluate Your Financial Status

Step 4

Develop a Plan

Step 5

Implement the Plan

Step 6

Monitor the Plan & Make Necessary Adjustments

Financial planning may mean different things to different people. For one person, it may meanplanning investments to provide security during retirement. For another, it may mean planningsavings and investments to provide money for a dependent's college education. Financialplanning may even involve making career-related decisions or choosing the right insurance products.
Many individuals choose to use the services of financial planners to help them reach their goals. A financial planner is a professional who provides advice and guidance for a wide spectrum of financial planning issues. Financial planners may or may not be certified and offer varied levels of experience.
Though a financial planner may make developing a financial plan easier, hiring one is not at all a necessity. There are many books, computer programs, and other resources available to help individuals with financial planning. Furthermore, there is a wealth of related information available on the Internet. The decision to hire a financial planner may depend on many things, including the financial worth of the individual, his or her goals for the future, and the amount of research the individual is willing to perform.
All too often, people delay planning for the future. They may feel such planning should take a back seat to staying financially afloat in the present. However, even those living from paycheck to paycheck can benefit from financial planning by creating a budget. A budget can be used to determine what is actually spent each month and find ways to trim or even eliminate unnecessary or out-of-control expenditures.