Financial Planning Definition

Financial planning is the act of establishing a roadmap to deliberate financial improvement by using or investing assets in a way likely to maximize returns. Financial planning entails: setting financial goals; developing plans by which these goals can be achieved; developing a budget to execute the pan; and periodic review and adjustment. Financial planning can be accomplished by an individual or can involve professional financial planners with sophisticated techniques and options. Professional financial planning often provides better outcomes than do-it-yourself approaches, but does involve costs.