See the below image for the Financial planning process diagram. The steps in the financial planning process are as follows: Establish and define the relationship with the client. The financial planning professional informs the client about the financial planning process, the services the financial planning professional offers, and the financial planning professional’s competencies and experience.
A financial plan is a personal document created to help assess your current financial situation, create various money goals, and help you make better financial decisions going forward. You can create this plan on your own or work with a certified financial planner. And according to the CFB Board, the financial planning process is defined as:
The financial planning process is important to understand as it can help you create efficient action items to better your money. This series of steps will be your go-to strategy that outlines how to budget, where to invest, and what other assets can help you achieve your financial goals.
Financial planning process image
