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In general usage, a financial plan can be a budget, a plan Financial planning can be an investment planning also. You
for spending or a saving for future. This plan distributes invest a portion of your savings into assets.Careful invest-
future income to various types of expenses, such as rent or ment planning makes sure these assets increase your money.
utilities, and also reserves some income for short-term and There are various investment options in the form of assets:
long-term savings. It can also be an investment plan, which stocks, shares, mutual funds, etc. Financial planning allows
distributes savings to various assets or projects expected to you to make major purchases in your life. You cannot buy a
generate future income, such as a new business or product house or a car without proper investment planning, and the
line, shares in an existing business, or real estate. right investment options will allow you to enjoy your retire-
ment.
In business, a financial plan refers to three primary finan-
cial statements (balance sheet, income statement, and cash Financial planning is not something that happens by itself.
flow statement) created within a business plan. Financial It needs focus and discipline. Lots of people think that the
forecast plan can also refer to an annual projection of in- future will take care of itself. Good financial planning means
come and expenses for a company, division or department. that your dream house/car will not be a dream, but a real-
A financial plan can also be an estimation of cash needs and ity. Investment planning signifies that you can take care of
a decision on how to raise the cash, such as through bor- your family in future; by exploring your best investment
rowing, issuing additional shares in a company, etc. options to give them everything you want in life. Financial
planning denotes that you take care of your future.
Financial planning is a plan to save and spend your future
income so it must be carefully budgeted. When you do your Financial planning for your retirement must start at an
investment planning, you should budget for both big and early age. Many people think that their job or children will
small spends. Financial planning needs to account for ex- take care in their pension stage, but this is not true in all
penses like rent, food, and utilities per month. While pre- the cases. Make sure that your retirement is a relaxed one
paring a financial planning, you should think about short- by making clever investment plans, so you can continue a
term and long-term savings. After expenses, you must set lifestyle in your retirement that you enjoyed throughout
aside a portion of your income for savings every month. your life. While a financial plan refers to estimating future
Most people who are going for financial planning believe in income, expenses and assets, a financial plan usually refers
setting aside an average 20% of monthly income towards to the means by which money will be acquired to cover
savings. For long-term savings, the best investment options future expenses, for example through earning, borrowing,
must be explored. using saved cash, etc.
A financial planner or personal financial planner is a prac-
ticing professional who helps people to deal with various
personal financial issues through proper planning, which in-
cludes but is not limited to these major areas: cash flow
management, education planning, retirement planning,
investment planning, risk management and insurance plan-
ning, tax planning, estate / property planning and business
succession planning (for business owners).
The work engaged in this profession is commonly known as
personal financial planning. In carrying out the planning func-
tion, he is guided by the financial planning process to create
a financial plan; a detailed strategy tailored to a client's spe-
cific situation, for meeting a client's specific goals.
"The history of PR is… a history of a battle for what is reality and how people will see and understand reality."
6 PR COMMUNICATION AGE January 2016
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