It may not be as complicated as you may think.
Financial planning is the process of planning your route from your current location to your goal. It is important to begin by analysing your current situation. Which assets and resources do you already have? Which liabilities do you have to take care of? How much cash do you have at the moment? Is it enough to help you achieve your goals?
Also, you should look at your ratios. Are you saving enough or do you have to pay off excessive debt? What percentage of your saving and earning be enough in order to send your child off to college in the future the line? Are you ready to retire by the age of 50?
Next, how quickly do you require to be there as well as how many speed bumps are you willing to take on? You may want to invest in low-risk companies to ensure slow but steady growth, or maybe you need money quickly, even if this means a few financial hiccups.
Your financial plan is essential, and you should plan your finances according to the goals you have for your future. This video will provide details on how to plan better your finances.