Financial planning is the process of taking a holistic look at your finances and establishing goals to work toward. Accomplishing these goals can create financial security and a sense of freedom for many individuals. While each individual's financial goals may vary, many of the goals are similar and can lead to positive benefits when achieved.

Financial security is a common goal that many strive for when engaging in the financial planning process. This security allows individuals to save for retirement, create a budget, invest for future growth, and plan for potential life events. Working towards these goals, such as increasing your emergency funds, can provide a cushion for any unexpected life events or challenges that may arise.

Eliminating debt is another common goal of financial planning. Paying off debt can have a significant and positive effect on an individual's credit score. Through budgeting, living within your means, and planning for potential purchases, it is possible to lead a lifestyle that reduces debt and increases financial freedom.

Another benefit of financial planning is the creation of a budget. A carefully crafted budget helps to identify where money is going and how much is left to save after expenses. Creating a budget can also help individuals set aside money for investing opportunities that may arise.