VINFINEDGE LLP

What is

Financial Planning

Most people want to handle their finances so that they get full satisfaction from each available dollar. Typical financial goals include such things as a new car, a larger home, advanced career training, extended travel, and self-sufficiency during working and retirement years.
To achieve these and other goals, people need to identify and set priorities. Financial and personal satisfaction are the result of an organized process that is commonly referred to as personal money management or personal financial planning.
Personal financial planning is the process of managing your money to achieve personal economic satisfaction. This planning process allows you to control your financial situation. Every person, family, or household has a unique financial position, and any financial activity therefore must also be carefully planned to meet specific needs and goals.
A comprehensive financial plan can enhance the quality of your life and increase your satisfaction by reducing uncertainty about your future needs and resources. The specific advantages of personal financial planning include
Increased effectiveness in obtaining, using, and protecting your financial resources throughout your lifetime
Increased control of your financial affairs by avoiding excessive debt, bankruptcy, and dependence on others for economic security.
Improved personal relationships resulting from well-planned and effectively communicated financial decisions.
A sense of freedom from financial worries obtained by looking to the future, anticipating expenses, and achieving your personal economic goals.

We all make hundreds of decisions each day. Most of these decisions are quite simple and have few consequences. Some are complex and have long-term effects on our personal and financial situations. The financial planning process is a logical, six-step procedure:

Determining your current financial situation
Developing financial goals
Identifying alternative courses of action
Evaluating alternatives
creating and implementing a financial action plan, and creating and implementing a financial action plan