Introduction

A spending plan is an essential tool for managing your personal finances. However, making a spending plan is only the first step in taking control of your finances. It’s essential to review and adjust your plan regularly to ensure that it remains effective and relevant to your current financial situation.

Why Should You Review Your Spending Plan

Your financial circumstances are not stagnant. They change constantly. A raise, a new expense, or a change in income can impact your budget. Therefore, reviewing your budget regularly will help you determine if it still works for you or if it needs adjustments.

How Often Should You Review Your Budget?

We recommend that you review your budget at least once a month. This will help you identify any changes that you need to make quickly. However, if your financial situation is more stable, it may be ok to do it quarterly.

Steps to Review and Adjust Your Budget

1. Identify any changes in your income or expenses.
2. Analyze your spending habits and identify areas where you can cut back.
3. Reallocate your money to match your new financial situation.
4. Set new financial goals based on your current circumstances.

Further Reading

• The 50 30 20 budget rule is a simple way to save money | Kiplinger
• Zero-Based Budgeting: Spend Every Penny but Meet Your Financial Goals – NerdWallet
• How Does the Envelope Budgeting System Work? (investopedia.com)