Financial planning refers to this decision making process. Financial planning is the continuing process of decision making about obtaining, protecting, and using financial resources throughout life. Financial planning means developing and implementing plans to meet defined financial goals and objectives. Financial goals are general, broad ideas of what you want to achieve with financial resources. An example of a financial goal is to send a child to college.
Financial objectives are more specific statements and stated for a shorter time period.
Financial planning is not a one-time endeavor or piecemeal approach to financial decision making. It is an ongoing, continuous process that looks at the total financial situation, and makes adjustments that are appropriate for the changes in life. Just as businesses need strong financial plans to thrive, people can use a similar systematic approach to managing personal and household financial affairs. Planning financial resources puts you more in control of your financial situation. Look at your plan as a blueprint or guide for action that will give you more control over financial resources.