Rand Robison : Personal financial planning involves creating a plan and strategies to achieve your financial goals. This is achieved through using the following: budgeting, savings and investment, insurance, debt management, cash management. The benefits of financial planning are many and varied. Savings and investments are about achieving certain monetary objectives. While many think of them as being one and the same savings is for short-term goals and to provide liquidity. Investments on the other hand are for longer term goals and tend to take on more risk to achieve higher returns. Your financial plan will incorporate these areas to enable you to realize your dreams and goals.