A financial plan presents a view of where your money goes and knowing where to put it. This will give you financial security for the future. A good financial planning can help you to understand whether financial decisions have any impact on your financial position as well as other financial decisions. If they are affecting any short term or long-term life goal then you can revise your decisions.

A bad finance planning can leave us homeless while a good financial plan is required to provide us a comfortable life. Its all about things that impact your financial situation.

Essentially, a financial plan is something that deals with your money and what your money represents. That means financial planning is planning your expenses on primary needs like food, transportation etc as well as secondary things like vacation planning, entertainment planning etc. Financial planning includes any plan that deals with wealth.

Financial planning isn't just about getting as much money as possible, or generating as much wealth as you can. Its about creating a material plan for your life that fits what you want to do and who you want to be.

Financial planning isn't a one-size-fits-all thing. It's about creating a lifestyle that's perfect for you. Hence it depends on your needs and varies from person to person.