How often should a financial plan be reviewed and possibly revised?

A financial plan should ideally be reviewed and possibly revised once a year. Annual reviews allow individuals to assess their financial goals, evaluate their progress, and make necessary adjustments based on changes in income, expenses, or life circumstances, such as marriage, the birth of a child, or a new job.

Annual intervals provide a balanced approach, ensuring that the plan remains relevant and effective without overwhelming individuals with frequent changes. This time frame allows for meaningful assessment of year-over-year performance without being too rigid or too casual, enabling proactive management of financial goals while still being flexible enough to adapt to that year's circumstances.

While some may argue for more frequent reviews, such as monthly or biannual check-ins, an annual review strikes a good balance between maintaining awareness of one's finances and not becoming bogged down with constant adjustments. Reviewing every five years might be too infrequent to effectively respond to significant life or economic changes.