What is one reason to regularly review one’s financial plan?

Regularly reviewing one’s financial plan is essential for adjusting to changes in income, expenses, and goals. Personal financial situations are dynamic, often influenced by various factors such as job changes, unexpected expenses, or shifts in personal circumstances. For instance, if your income increases or decreases, your budget may need to be restructured to accommodate new priorities or savings goals. Additionally, life events like marriage, having children, or approaching retirement can significantly alter financial objectives. By routinely assessing and revising the financial plan, individuals can ensure that their financial strategies remain aligned with their current situations and aspirations, ultimately leading to better financial health and attainment of long-term goals. This proactive approach helps maintain financial stability and progress, making it a critical aspect of effective financial management.