Financial Planning is a series of steps or goals used by an individual or business to accomplish a financial goal or set of circumstances, e.g. debt elimination, retirement planning. This often includes a budget which organises an individual or business’s finances and includes a series of steps or specific goals for spending and future saving.
This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance, a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.