Financial Planning: what, why, and how to create a financial plan

Financial planning might sound boring. Yet what it can do for your financial future is anything but dull.

A financial plan is a guide for reaching your goals and dreams-it gives you a picture of where you’re at, where you want to go, and how to get there.

The good news is, financial planning helps anyone, no matter their financial situation. And creating a plan is easier than ever.

You most likely have access to the resources, tools, and information necessary to get started.

Below, we’ll cover the various parts of financial planning and discuss how to create a plan.

Whether you develop your own or hire a financial planner, the important thing is to have a strategy to reach your goals.

What is financial planning?

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Financial planning starts by looking at your financial situation right now. It ends with specific strategies to reach your financial goals.

Broadly, it consists of strategizing for:

Through the process of financial planning, you’ll take stock of where you are currently, define your money goals, and create a plan for carrying them out.

You can do financial planning on your own or hire a professional to help you. But…