Financial Plan

A financial plan is a comprehensive strategy that outlines an individual’s or company’s financial goals, along with the steps needed to achieve them. It typically includes budgeting, investment planning, retirement planning, tax strategies, and risk management. Financial planning helps in setting clear objectives, monitoring financial progress, and adjusting strategies as needed. For businesses, a financial plan also involves cash flow projections, capital needs, and funding strategies.

Example

An individual creates a financial plan to save for retirement, pay off debts, and invest in a diversified portfolio to achieve long-term financial security.