FINANCIAL PLANNING

FINANCIAL PLANNING

You already know about the meaning of finance,

Now you should know about the meaning of

"plan"- that is making arrangements for something in advance.

Now we can discuss about Financial Planning

Financial Planning is the backbone of any organisation. So one should give it the most

importance.

FINANCIAL PLANNING INVOLVES THREE MAJOR COMPONENTS ( OR)THINGS THAT ARE:

FINANCIAL RESOURCES,

FINANCIAL TOOLS,

FINANCIAL GOALS,

FINANCIAL RESOURCES:

Financial Resources means having a

"supply of money" to be drawn or used by any organisation to meet its purposes.

It can also be said that what are the

"Resources of Funds" for any organisation.

FINANCIAL TOOLS:

Financial Tools means "things related to money"

which are useful to achieve the desired results,

Here we can say equity shares, preference shares, debentures,bonds ,are some of the

examples of financial tools of individuals & Corporate organisations.

For corporate organisations financial tools may also include financial investment like core

projects, capital projects, & some other similarly like projects.

FINANCIAL GOALS:

Financial Goals are the Desired results one wants to Achieve,

Here we can say,

Financial Goals for individuals can be a corpus amount for Educational purposes, Housing

purposes, Retirement purposes, and any other Desired purposes.

Financial Goals for Corporate organisations can be Financial objectives generally which are

set by the Top level Management which are in line with their corporate vision and mission.

By having financial resources through financial tools one can achieve their financialgoals,

That is, Investing ( parking or puting ) of

Financial resources in any Financial tools like(equity,Preference,bonds,etc.....)

(Core projects,Capital Projects,etc…)through this one can achieve their desired financial

goals.

Above all three things planning is known as

financial Planning.

Financial planning is a systematic approach:

whereby the financial planner helps the customer to maximise his existing financial

resources by Utilizing financial tools to achieve his financial goals.