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Tip Think about the things you want to do in 10, 20, or 30 years, and what steps you would have to take to reach those goals.

Generally, the closer you stick to your budget, the more progress you will make on your financial plan. With a budget, you record your income and expenses on a weekly or monthly basis. With a financial plan, you typically track your progress on a quarterly or semi-annual basis. However, having a grasp on how much money to budget once your expenses are paid lets you know how much money can be put toward the goals defined in your financial plan.Ħ Financial Planning Long-term vs. tactics:Ĭreating a financial plan requires building a long-term strategy for getting you where you want to go, while building a budget means money management for the day-to-day. A good financial plan may address your income and expenses, taxes, insurance, estate planning, retirement, education needs, and other topics.ĥ Financial Planning Strategies vs. While a budget helps you map out your key expenses and plan for the weeks and months to come, a financial plan allows you to set a course toward funding financial goals that are 5, 10, or 20 years down the road. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.ģ Financial Planning Difference between budget and financial planĤ Financial Planning WHERE YOU’RE GOING VS.

Usually, a company creates a Financial Plan immediately after the vision and objectives have been set. Presentation on theme: "Financial Planning."- Presentation transcript:Ģ Financial Planning Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives.