Financial planning is a structured process that helps individuals and families organize their finances in a systematic manner. It focuses on understanding current financial situations, defining financial objectives, and creating a roadmap to manage income, expenses, savings, and investments effectively over time. The process typically includes budgeting, goal setting, investment planning, risk management, and periodic reviews. By evaluating factors such as income stability, expenses, liabilities, and future needs, individuals can make informed financial decisions aligned with their risk tolerance and time horizon.