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Financial planning is the process of meeting your life
goals through the proper management of your finances. Life
goals can include buying a home, saving for your child’s
education, or planning for retirement. The process
involves gathering relevant financial information, setting
life goals, examining your current financial status, and
developing a plan or strategy for how you can obtain your
goals given your current situation and future plans.
Financial planning provides direction and meaning to your
financial decisions. It allows you to understand
how each financial decision you make affects other areas
of your finances. For example, buying new furniture
for your living room using a credit card may enhance the
value of your belongings, but it may cost you more in the
long run due to the finance charges. By viewing each
financial decision as part of a whole, you can consider
its short-term and long-term effects on your life goals.
For additional resources on personal financial planning,
please visit the following links:
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