What is the main purpose of financial planning?

The primary purpose of financial planning is to create wealth and ensure future financial security. This holistic approach involves assessing current finances, setting realistic goals, and developing strategies to achieve those goals over time. Effective financial planning helps individuals save for major life events such as retirement, education, or purchasing a home, and provides a framework for managing income and expenses.

While minimizing taxes, monitoring market fluctuations, and buying real estate are components that can be part of a broader financial strategy, they do not encompass the overarching goal of financial planning. Financial security and wealth creation take into account various aspects such as budgeting, investing, risk management, and financial goal setting, which together form a comprehensive plan tailored to individual circumstances and objectives.