A financial strategy isn’t something you should set and forget. Life moves, circumstances change, the economy shifts, and what once worked may not be as effective as it used to be. It’s good to regularly check in on your financial progress and consider whether your current approach is still the right fit.
Life changes, and so should your plan
Major life events like a new job, buying a property, paying off debts, growing your family, or nearing retirement can all affect your financial needs and goals. Changes such as a pay rise, changes in spending habits, or paying off a loan can impact your overall financial position. Regularly reviewing your strategy helps make sure it still aligns with where you are now, not where you were a year or two ago.
Economic conditions evolve
Interest rates, inflation, and government policy can all influence your financial outcomes. For example, changes in borrowing costs may affect how much you can comfortably repay on a mortgage, or how attractive investment options appear. A financial strategy that was set during one economic climate might not perform as expected when conditions shift.
Markets are always moving
Investment markets are dynamic. They rise, fall, and sometimes stay flat. While long-term strategies are designed to ride out these ups and downs, your risk tolerance, income needs, or investment timeline might change over time. Reviewing your strategy can help make sure your investments still suit your goals and comfort level.
Progress isn’t always linear
Everyone experiences periods of progress and setbacks. You might be ahead on your savings goals, or perhaps things didn’t go to plan this year. Knowing where you stand gives you the information needed to make adjustments. It could mean staying the course, rebalancing your investments, or setting new goals for the year ahead.
Small tweaks can make a big difference
A financial review doesn’t always lead to major changes. In many cases, it’s about fine-tuning what’s already in place; adjusting contributions, refining your goals, or updating documents. These smaller, but important, changes can help keep your strategy aligned with your life and financial goals without requiring a complete reset.
Practical steps to consider
There are a few key areas where a simple review can help keep your finances on track. For example:
- If your spending habits have changed, reviewing your household budget can help ensure your day-to-day money management still supports your longer-term plans.
- If your family circumstances have changed, it may be worth reviewing your life and disability insurance to ensure it still provides adequate protection.
- If you had a pay rise recently, you may wish to review your income protection cover and how best to address the surplus income.
- If it’s been a while since you looked at your superannuation, check whether your investment strategy reflects your current stage of life and tolerance towards risk – especially as global market shifts continue to impact returns.
- You might also want to revisit your estate planning, including wills and beneficiary nominations, to make sure everything is up to date.
These reviews don’t need to be time-consuming, but they can make a big difference over time.
If it’s been a while since you reviewed your strategy, consider speaking with your adviser to make sure you’re on track for the year ahead.
