Meaning of financial planning and it's objectives. Also the need and importance of financial planning.
Financial planning means deciding in advance how much to spend on what to spend, according to the funds at our disposal. Financial planning is the process of determining the objectives, policies, procedures and programmes to deal with the financial activities of an organisation. Financial planning is mainly concerned with the economical procurement of funds and profitable use of funds. Literally meaning Financial planning is composed of two terms 'finance' and 'Planing'. Finance may be defined as the provision of money at the time when it is required. Planning means deciding in advance the future course of action. Thus, financial planning is deciding in advance the future requirement of capital, its sources it's structures and laying policies for the same. Financial planning is used in two senses:- (a) Financial planning in narrow sense: In this sense the financial planning means the pre estimation of capital of the enterprise or firm. (b) Financial planning in br