| To plan means charting your future course of action | | | | advance how much to spend, and what to spend on, |
| in advance and organizing activities and individual and | | | | based on the funds at his/her disposal. This includes |
| group efforts to work towards the achievement of | | | | tax planning, investment planning, insurance planning, |
| goals. Financial planning involves the managing of | | | | mortgage planning, retirement planning, and savings |
| financial affairs of a business or an individual. | | | | planning .There are a wide range of investment |
| Financial planning means creating and employing plans | | | | opportunities available to the public. People are often |
| to meet defined financial objectives. The firm must | | | | confused as to which is the best choice to suit their |
| decide in advance how it will arrange funds for its | | | | budget. The funds available must be prudently |
| working capital requirements and for investment in | | | | invested. One has to consider the profitability, |
| long term assets. This process of estimating the fund | | | | liquidity, and safety of the various investment |
| requirements of a business and determining the | | | | opportunities before investing in them. Investment of |
| sources of funds are an important part of financial | | | | funds in fixed assets has long term implications as the |
| planning. Financial planning takes into consideration the | | | | funds would be blocked for a long duration and their |
| growth, performance, investments, and requirements | | | | benefits could not be realized in near future. The |
| of funds for the business for a given period of time. | | | | planning of an individual?s finance involves a careful |
| It provides a detailed plan of action for reducing | | | | study of the current economic conditions. This |
| uncertainty and for the proper direction of individual | | | | enables them to plan their financial matters efficiently |
| and group efforts. | | | | and achieve their financial goals successfully. |
| For an individual, financial planning means deciding in | | | | |