What is a financial plan?

A financial plan serves as a roadmap for managing an individual or organization's finances. It encompasses a thorough evaluation of the current financial status, including assets, liabilities, income, and expenses, as well as projected future financial circumstances. This evaluation allows for the formulation of strategies to meet specific financial goals, such as saving for retirement, funding education, or purchasing a home.

The comprehensive nature of this plan distinguishes it from other options that focus on narrower aspects of finance. For instance, while a detailed approach to budgeting might be part of a financial plan, it does not cover the full scope of evaluating both current conditions and future projections. Similarly, an investment strategy is merely a component of a financial plan rather than the entire picture. Lastly, summarizing income sources does not provide the depth needed to effectively assess and plan for long-term financial health.

Thus, the correct answer highlights the holistic and forward-looking aspects of a financial plan, making it essential for sound financial decision-making and goal attainment.