Financial Planning, Explained Step by Step
A financial plan is a written summary of where your money stands, what you want it to do, and when. Most plans cover cash flow, a cash buffer, debt, protection, growth, taxes, and a review date.
How is financial planning different from budgeting?
Budgeting looks at one month. Planning looks at years and uses your monthly numbers as inputs.
How often should a financial plan be reviewed?
Planning material usually suggests once a year. It also suggests a check after big life changes like a move or a new job.