Why is it important to review your financial statements regularly?

Reviewing financial statements regularly is crucial because it allows individuals to track their financial health and detect mistakes. By consistently examining income statements, balance sheets, and cash flow statements, a person can identify trends in their spending and income, understand their overall financial position, and make informed decisions regarding budgeting and saving.

This practice helps in pinpointing discrepancies, such as errors in transactions, unauthorized charges, or missed payments, which can have significant impacts on one's finances. Recognizing these issues early can lead to timely corrections and prevent more substantial financial problems down the line. Moreover, regular reviews also reinforce accountability to financial goals, enabling individuals to stay on track and adjust their strategies as needed.

In contrast, focusing on increasing expenses, ignoring financial goals, or minimizing savings does not contribute to sound financial management and can lead to greater financial instability. Regularly reviewing financial statements highlighted in the correct choice empowers individuals to maintain control over their finances.