Why is it important to regularly review your financial plan?

Regularly reviewing your financial plan is essential because it ensures that the plan aligns with your changing goals and circumstances. Life is dynamic, and people experience changes in their personal and financial situations frequently. For instance, you may encounter changes such as a new job, a marriage, the birth of a child, or shifting priorities regarding savings and investments.

If you do not regularly assess and update your financial plan, it may become irrelevant or ineffective in addressing your current needs and aspirations. By aligning your plan with your evolving goals, you can make informed decisions about budgeting, saving, investing, and other financial activities that support your life objectives and help you to be better prepared for the future.

Other options suggest maintaining the status quo or increasing liabilities, which do not address the need for adjustments in response to life’s inevitable changes. Hence, the regular review is not just about maintaining consistency but ensuring relevance and effectiveness in achieving your financial goals.