The general perception of financial planning is managing one's money. It is widely considered as just managing cash flow and wealth management. Precisely the questions being asked are:
1. How much should one save?
2. How much should one spend?
3. How much money is required to survive in the future without compromising on lifestyle?
All these questions can be answered with the help of tools like spreadsheets or financial calculators, but what remains unanswered is: Is this activity financial planning? The answer is no.
Financial planning is a far broader process covering a whole gamut of aspects other than creation of wealth. These are: protecting the wealth and value of assets including life; avoiding tax leakage by making all our financial transactions tax-efficient; and passing on the assets created with our hard work to its rightful owners of our choice, and in totality ensuring that our life goals are duly met. All these go concurrently with achieving our life goals in a systematic manner. This is the true essence of wealth creation and progression.
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