Importance of Financial Planning

Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as-

1. Adequate funds have to be ensured.

2. Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.

3. Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning.

4. Financial Planning helps in making growth and expansion programmes which helps in long-run survival of the company.

How to plan your finance?

Hopefully, you’re now convinced that you definitely need a piece of the action. What next? When you actually get right down to it, financial planning consists of a series of steps. This section examines each of these steps in detail.

1. Identify your current financial situation

2. Identify your goals

3. Identify financial gaps

4. Prepare your personal financial plan

5. Implement your financial plan

6. Periodically review your plan

Description

Financial planning is a roadmap for your financial journey such as buying a house, car, education for children, wealth creation and so on. Plan & analyse your personal finance with Recipe tools and find the best suggestions.

Url:- https://recipe.finology.in/financial-planning