Financial Planning is combination of two words . First word is financial which has made from finance. It means fund and cash that generates earning . Financial is adjective of noun word finance, every business transaction or event which is relating to fund or money or cash or currency is called financial transaction or financial event . Planning means to do any work with predetermined process and program and factful estimations . Now , Financial planning means all planning which is relating to fund or money . In financial planning , Finance manager makes the plans for getting fund from loan and other sources at very low cost . He also makes plans for effective utilisation of these money in high return projects and purchasing of fixed assets . For this he estimates companies cost of capital , return on investment , companies fixed and variable cost , Companies other fixed and Variable revenue resources , companies work capability . All these plans and estimations are included in Financial planning .