Financial Planning-What Is It?

The term "financial planning" often intimidates people, especially those who think financial planning is for the high-income earner and the rich.

But is this true? If not, what is it actually? Generally, financial planning involves taking a broad view of one's financial affairs covering many areas of wealth management, and then going through a step-by-step process to solve financial problems and achieve financial goals.

What is Included in Financial Planning?Here are some core elements of financial planning:
Cash flow management, involving: assessing your current financial net worth (what you own minus what you owe).

This will generally tell you whether you are on your way to financial freedom or financial disaster
-budgeting

-eliminating debts

-building savings.

-Investment planning

once you have determined the amount of money you would like to save, you should consider where to put your savings with the aim of receiving a higher return than your normal savings account.

An investment strategy has to be mapped out so that you will have greater success in meeting your stated financial goals.