The Impact of Financial Planning on Financial Well-Being with a mediating role of Tax Planning among salaried employees: An empirical study

In this study, the author explores how financial planning and tax planning impact individuals' financial well-being, while also examining the relationship between these two factors with the mediating role of tax planning. The research focuses on 274 salaried employees, gathering data using questionnaires distributed to salaried employees in Chennai City. In order to test the suggested correlations, the respondents' data was examined using the ‘Partial Least Square Structural Equation Modeling (PLS-SEM)’ technique. The analysis reveals that financial planning significantly influences individuals' financial well-being. Additionally, tax planning is found to play a crucial and positive mediating role in these relationships. The paper emphasizes the importance of tax planning in enhancing financial well-being. Key findings indicate strong positive correlations between proactive financial planning and improved financial well-being, with tax planning acting as a key mediator. The research shows that individuals who practice systematic financial planning and effective tax management enjoy greater financial stability, lower financial stress, and better long-term wealth accumulation. This study offers evidence-based insights for creating more comprehensive financial planning frameworks that include tax optimization strategies. By connecting conceptual model with practical applications, the study serves as a guide for individuals, financial professionals, and policymakers aiming to improve financial well-being through strategic planning and tax optimization. The key implications suggest that organizations and financial educators should focus on holistic financial literacy programs that cover both broad financial planning strategies and specific tax optimization techniques.