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Financial planning: meaning, definitions and examples

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financial planning

[ fɪˈnænʃəl ˈplænɪŋ ]

Noun

^{Context #1 | Noun}

personal finance

Financial planning is the process of setting short-term and long-term financial goals and creating a plan to achieve them. It involves assessing your current financial situation, identifying areas for improvement, and making strategic decisions about saving, investing, and spending.

Synonyms

budgeting, financial management, investment planning.

Which Synonym Should You Choose?

Word	Description / Examples
financial planning	This term is used when talking about the overall strategy for managing an individual's or organization's financial future. It includes setting goals, analyzing current resources, and creating a plan to achieve financial objectives. We are working on our financial planning to ensure we can afford to buy a new house in the next five years. John hired a professional for financial planning to secure his retirement.
financial management	This term is generally used in a business or organizational context and involves planning, organizing, directing, and controlling financial activities. It is broader and can include both budgeting and financial planning. Effective financial management is crucial for the success of any large company. The new CFO is implementing a new financial management strategy to improve the company's profitability.
budgeting	This term refers to the process of creating a plan to spend your money. It helps to outline where the money will go and ensures that there are resources for necessities, savings, and other financial goals. We need to start budgeting better to save for our vacation. She uses an app for budgeting to keep track of her expenses and income.
investment planning	This term is used when specifically focusing on how to allocate resources in various investment options to achieve particular financial goals. It often involves assessing risk tolerance and setting long-term investment strategies. He is looking into investment planning to grow his wealth over the long term. They sought advice on investment planning to ensure their portfolio is well-diversified.

Examples of usage

Financial planning can help individuals achieve financial security and build wealth over time.
Many people seek the help of financial planners to create a comprehensive financial plan.
Effective financial planning requires budgeting, setting financial goals, and monitoring progress regularly.

Translations

Translations of the word "financial planning" in other languages:

🇵🇹 planejamento financeiro

🇮🇳 वित्तीय योजना

🇩🇪 Finanzplanung

🇮🇩 perencanaan keuangan

🇺🇦 фінансове планування

🇵🇱 planowanie finansowe

🇯🇵 財務計画

🇫🇷 planification financière

🇪🇸 planificación financiera

🇹🇷 finansal planlama

🇰🇷 재무 계획

🇸🇦 التخطيط المالي

🇨🇿 finanční plánování

🇸🇰 finančné plánovanie

🇨🇳 财务规划

🇸🇮 finančno načrtovanje

🇮🇸 fjárhagsáætlun

🇰🇿 қаржылық жоспарлау

🇬🇪 ფინანსური დაგეგმვა

🇦🇿 maliyyə planlaşdırması

🇲🇽 planificación financiera

Etymology

The concept of financial planning dates back to ancient times when civilizations used various methods to manage their finances. However, modern financial planning as a profession emerged in the 20th century with the growth of the financial services industry. Today, financial planning plays a crucial role in helping individuals and businesses achieve their financial goals and secure their financial future.