Financial Planning is the process of estimating the capital required and determining its
competition. It is the process of framing financial policies in relation to procurement,
investment and administration of funds of an enterprise.
The process of determining a person's or firm's financial needs or goals for the future and
the means to achieve them. Financial planning involves deciding what investments and activities
would be most appropriate under both personal and broader economic circumstances. All things
being equal, short-term financial planning involves less uncertainty than long-term financial
planning because, generally speaking, market trends are more easily predictable in the short
term. Likewise, short-term financial plans are more easily amendable in case something goes
wrong as a result of the short time frame.