Some people may confused between financial planning and strategic planning. These things are different each other. You have to know about it.
The company works to make benefit to the owners. To make the benefit, they should make the strategic planning. They can use all source to implement the strategic. Sometimes the company can materialize the steps but sometimest they fail to meet the goals.
The strategic planning is included any action to reach the goals including production, marketing, and finance. It needs coordination from various organization in company. The planning may write down any action to increase the product. Perhaps they have a new way to promote the product through facebook or twitter. Today, there are so many company that promote the product through the social network because it is easy and cheap. We can send so many tweets to twitter without charge or make facebook group.
The strategic planning also include the finance. The company may borrow some money. They can borrow money from bank or they can issue bond. Both loan has benefit and loss. The financial manager can use the effective combination between two kind of loans.
On the other hand, Financial planning is not similar to strategic planning. The financial planning is concern about the money. The people may be difficult to allocate the money. Some people just use money for spending only. They do not know The money is important for us. We can save it for the future.
Financial planning duty place your money to some retirement fund such as IRA, Roth IRA, 401k, and others. The money that you invest at there will grow. When we retire, we do not have to find jobs. The retirement fund may fund our living cost.
Financial planning has aim to reach financial goal only. For example, we want to buy car for next five years. In the planning we should earmark our money to buy the car. Our planning also record the amount of dollar. We can save the money first to reach financial goals.
To make your financial goals success, some person use budget. The budget write down all income that we usually can stream and the spending that we spend every month. When the spending is higher than income, the person should increase the income. The budget should be balance. We can also reduce the spending to balance the budget. Reduce the spending is the easier option than increasing the income.