1. Personal Financial Planning
2. Business Financial Planning
Personal Financial Planning
Personal financial planning typically involves creating a personal budget, planning for taxes, setting up a savings account and developing a debt management or recovery plan. All of these activities may be assumed by a certified financial planner who is hired to assist an individual with their finances, but individuals can also establish their financial plan to reach short and long-term savings and investment goals.
Business Financial Planning
Financial planning for a business is the task of determining how the organization will afford to achieve its strategic goals. Usually, an organization creates a financial plan immediately after the vision and objectives have been determined. The financial plan describes each of the activities, resources, equipment, and materials that are needed to achieve an organization’s objectives as well as the timeframe.