How to Prepare a 5-Year Financial Plan?

Why Is Financial Planning Necessary?

How to Make a 5-Year Financial Plan?

Why Should You Create a 5-Year Financial Plan?

What to Include in Your 5-Year Financial Plan?

FAQs on How to Prepare a 5-Year Financial Plan

Can I make a financial plan alone?

Yes, you can make a financial plan all single-handedly. However, it is better to take expert assistance from certified financial advisors. While doing a financial plan successfully, you have to include cash flow planning, investment planning, and tax planning.

What is the difference between financial planning and wealth management?

Financial planning is a process concerned with formulating a detailed plan to manage finances and achieve a financial goal in future. While wealth management is the process of preservation and enhancement of wealth.

Are financial advisors and financial planners the same?

Even though both of their working patterns are similar, they differ as per the tenure of your financial plan. In other words, if your financial plan is on a short-term note, and you need some financial assistance, it is better to hire a financial advisor. On the other hand, if there is a long-term financial plan, it is better to hire a certified financial planner.

What are the principles of finances?


There are three principles of finances as stated below:

  • Cash flow
  • Risk and return
  • Time value of money