What is the primary goal of financial planning?

The primary goal of financial planning is to help individuals achieve their financial objectives. This encompasses a broad range of personal financial goals, including saving for retirement, purchasing a home, funding education, managing debts, and planning for emergencies. Effective financial planning involves assessing a person's current financial situation, defining specific goals, and creating strategies to reach those goals, all while considering their unique circumstances and values.

Financial planning is a holistic process that recognizes the importance of tailoring solutions to fit individual needs and timelines, ensuring a roadmap towards achieving desired financial outcomes. This process also includes monitoring progress and making adjustments as circumstances change.

In contrast, minimizing expenses and maximizing debt does not align with the ideals of financial stability and healthy financial management. Eliminating risk from all investments is unrealistic, as risk is inherent in investing and managing it wisely is a key aspect of financial planning. Focusing solely on retirement savings overlooks the importance of addressing a wide array of life events and financial situations throughout an individual's life, which can also significantly impact financial well-being.