Money Management vs Financial Planning
Money Management is created to achieve short-term (weekly/monthly/quarterly) goals, while Financial Planning is for achieving long-term goals. However, these two are closely linked to each other.
Money Management may include things such as income, expenses, cash flow – debit and credit, establishing emergency funds, paying off credit card debts, and setting some short-term goals such as saving a little every month for a vacation at the end of the year.
Financial Planning is a comprehensive plan, which includes items such as, tax implications, insurance, estate planning, financing a home, risk management, retirement planning, establishing financial security, and others.
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