How Often Should You Review Your Budget for Better Financial Control?
Budgeting isn’t something you set and forget. To keep things running smoothly, it’s important to go over your budget regularly. How often depends on what’s going on with your finances, but common check-ins are monthly, quarterly, or annually.
Monthly Check-ins Reviewing your budget each month keeps you aware of whether your spending matches your plans. If there’s a misalignment, you can fix it right away before it throws things off track.
Quarterly Reviews Every three months, you can take a step back and look at patterns over a longer period. This helps to catch trends that monthly reviews might miss. Are there seasonal fluctuations? Maybe your expenses spike during a particular quarter. Quarterly reviews help you adjust before minor problems snowball.
Annual Planning Start your yearly planning in April so you’re ready when the fiscal year kicks off in July. An annual review helps you assess the bigger picture and decide on new financial goals or major investments.
Extra Tips for Staying on Track:
Stay Ahead of Taxes Set aside funds for taxes regularly, so you’re not caught off guard when the deadline rolls around. It’s a small habit that pays off when it’s time for BAS lodgements.
Have an Emergency Fund Unexpected expenses happen. Having a buffer in your budget helps you handle these without throwing your finances off course.
Adjust for Inflation Keep an eye on inflation and economic changes. They can sneak up on you, so it’s smart to be flexible with your budget to keep everything balanced.
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