What is financial planning?

[niyati]

’m new to corporate finance and trying to understand the core functions handled by CFOs and finance teams. Can someone explain what financial planning really means in a business context? Also, why is it considered such a critical part of a company’s success?

 

[danisjohn]

Financial planning is the process of setting and managing financial goals through budgeting, saving, investing, and risk management. It involves assessing current financial situations, creating strategies for future needs, and making decisions to achieve long-term financial security. It helps individuals or businesses allocate resources efficiently to meet objectives.

 

[Gsusangrey]

Financial planning is the process of managing your money to achieve your life goals. It involves assessing your current finances, setting objectives, creating strategies for saving and investing, and regularly reviewing your plan.

 

[Mayank]

Financial planning is the process of managing your finances by setting goals, creating budgets, and developing strategies for saving, investing, and managing debt to achieve long-term financial stability and security.

 

[Olivia]

Financial planning is thinking ahead about your money—how much you have, what you need, and how to use it wisely to reach your goals, like buying a home, saving for school, or retiring comfortably.