Life changes. You change jobs, move, get married/divorced, have kids, etc. As a result, your financial plan should change with you. To ensure it does, be sure to review it in at least these five situations.
At Least Yearly, Ongoing
At a minimum, you should review your financial plan yearly. Even if you ignore it during these other suggested times, reviewing it yearly means you’ll catch any significant changes that need to be included. This helps ensure the data you’re working with is accurate and that you remain on track for your long-term financial goals.
Before and After Major Changes
Did you buy or sell a house? Start or close a business? Retire? Get married or divorced? Have a child? Review your plan before these types of changes to ensure you can afford to do them. Then again, when you’ve finalized the changes to ensure the information in your plan is still accurate and that you’re still on track.
Between Life Transitions
Reviewing your financial plan before and after life changes is important. However, it’s equally as important to review your plan when your life isn’t changing. Creating and reviewing your plan when everything is calm in your life means you’ll be able to give it the attention it deserves and you won’t feel rushed or pulled into a plan that doesn’t align with all your goals.
When You’re Not Sure What to Do Next
Market volatility and life stressors can make it feel like “jumping ship” is a good idea. When this happens, go back to your financial plan. You’ll see that the short-term situations are accounted for and feel confident sticking to the long-term strategy.
When You Need to Set Priorities
If you’re like most people, you’ve got a lot of goals and dreams. This is good! But it can also feel overwhelming in the light of limited resources and time. Reviewing your financial plan can help you prioritize your goals and see their impact on your long-term finances. It will also help you be sure your goals and plan are aligned with your core values.
When was the last time you reviewed your financial plan and goals?