Financial strategy refers to a plan that outlines how an individual or organization will manage its financial resources to achieve specific goals. This includes budgeting, investing, and managing debt to ensure long-term financial health. A well-defined financial strategy helps in making informed decisions about spending, saving, and investing. Key components of a financial strategy often include cash flow management, risk assessment, and investment planning. By analyzing current financial situations and future objectives, individuals and businesses can create a roadmap that guides their financial decisions, ultimately leading to improved financial stability and growth.