Financial planning is the process of identifying an individual's financial goals and objectives, evaluating their current financial situation, and developing a comprehensive plan to achieve those goals. It involves analyzing an individual's income, expenses, assets, and liabilities, as well as their risk tolerance, time horizon, and financial constraints.
The primary goal of financial planning is to help individuals achieve their long-term financial goals, such as retirement, education, buying a home, or starting a business. A financial plan typically includes strategies for saving, investing, managing debt, and protecting assets.
Financial planning is important because it helps individuals make informed decisions about their finances, and ensures that they are on track to achieve their long-term financial goals. It also helps individuals manage financial risks and make the most of their financial resources.
Financial planning can be done on one's own, but it is often beneficial to work with a financial planner or advisor who can provide expert guidance and help develop a personalized plan based on an individual's unique financial situation and goals.