Question

Financial Planning is an essential element in virtually all aspects of business and personal financial management. Financial planning may be short-term and long-term. Financial planning will change to meet the needs of business and as our life changes (college, marriage, divorce, children, retirement, buying a car/home, etc.)

Discuss the importance of financial planning, how it may change, how much money will you need to retire, what factors should be considered (how long you plan to work, does your company offer a pension, will social security still be around, do you want to travel, etc.). Please include examples which may be factual or fictional depending on your comfort level sharing with the class.

Answer 1

As everyone knows finance is the blood of any organisation, it may also be called as lifeline of the buisness.  

Financial planning helps in ensuring a resonable balance between outflow and inflow of funds so that stability is maintained

Financial planning ensures that the suppliers of funds are easily investing in those companies which have financial planning

Financial planning helps the company to prepaare for the future , also helps in avoiding buisness shocks and surprises

It helps in co ordinating various buisness functions , it also helps in reducing waste , duplication of efforts ,gaps in planning and confusion it links the present with future