Financial Planning and Budgeting
Financial planning is a term, which is used to refer to the process of estimating the capital required and its competition. In actual terms, it is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. In simple terms, we can say that budgeting is a process of creating a plan to spend your money. Creating a budget helps one to find in advance, whether they will have money to spend on things or not. Difference between Financial Planning and Budgeting Ilan Korchmar is of the view that budgeting is an incredibly important financial strategy. It helps in evaluating how much you spend, measure how much you spend and help you spend less. Though financial planning helps you create a comprehensive portfolio after studying you current financial state. It helps you to predict your future cash flow, asset values and withdrawal plans based on the information of your current state. ...