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Is budget review something you consider every now and then?
Do you know how many times I perform my budget reviews per year?
Well, I complete 5-6 budget reviews annually
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In the lines below, I will show you why it is important to consider reviewing your budget and how often to review it?
I will start with the below
What is budget review?
Reviewing your budget is like maintaining your car by changing oil to perform better on the road to financial success
Great words, ignore the above
I will keep it simple, the review process is to revise, assess and reconsider your allocated amounts you assigned before to your expenses
This practice – I consider it a 5 minutes task that will give you a great intuition for improvement
Why reviewing budget every now and then is important?
Imagine you are invited as a speaker in a conference
You start speaking only to find that your audience started checking their cell phones
Some of them, started to close their eyes for a nap
Finally, your friend at the end of your long session told you that you should have engaged your audience
By asking questions, stoping every 2-3 minutes to make sure your audience are still following you
This is exactly the same way if you setup a budget and leave it without reviewing, you will forget your allocated amounts and definitely will drift out of your plan
Similar to speaking and audience start napping
Your assigned amounts would not make any sense if you don’t tweak it as you go along
It is important to revise and check your budget to find possible ways to increase your saved money and put yourself back on track for your long term financial goals
When to revise and reassess your budget?
There are few cases that cause you to consider reviewing and changing your amounts in your current budget
Review your budget based on life changing events
- Getting married
- Getting a newborn baby
- Changing your job or getting promoted
- Changing your home which means low or high mortgage amount
- Inheriting money or asset
- Losing your job
- Losing a spouse or household member
- Going to retirement
Reviewing based on financial changing events
- Getting an increase in your income like the annual increase
- Getting a newly added expense(s) or even getting rid of few
- Finishing one of your debt or your mortgage
- Refinancing your debt with less interest
- Refinancing your mortgage with low interest rate
- Renewing your mortgage by changing terms, interest or duration
Reviewing based on financial changing events
- Weekly – to make sure you meet your weekly expenses like grocery and adjust accordingly if there is any deficit
- Monthly – to make sure you meet your end of month budget numbers
- Quarterly – to check if you are able to adjust any expenses according to occasions as you may know in every quarter we have at one or two occasions
- Yearly – to adjust your numbers for the next year
Make quick easy cash now
Survey Junkie - Earn up to $35 per survey
Rakuten - Cashback on shopping - $25 welcome bonus
Be Frugal - Earn $10 when you sign up
Flipper - buy cheap sell high and make huge profit
Acorns - turn your spare change into more money
Follow me for updates on quick cash programs
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