A financial plan is a comprehensive strategy that outlines an individual's or organization's financial goals and the steps needed to achieve them. It typically includes budgeting, saving, investing, and managing debt. A well-structured financial plan helps to ensure that resources are allocated effectively to meet short-term and long-term objectives. Key components of a financial plan often involve assessing current financial situations, setting specific goals, and creating a timeline for achieving those goals. Tools such as spreadsheets, financial software, and consultations with financial advisors can assist in developing and maintaining an effective financial plan.