Is it a good time to revisit your financial plan?

There are various situations other than the regular check-ups when you must revisit your financial plan. Besides checking on the progress of investments, making tweaks to the retirement dates, and pre-payment of debts, there are certain circumstances when it becomes all the more important to revisit your financial plan. In the following paragraphs, we will enlist some of the situations when you are required to revisit your financial plan.

Your personal circumstances have changed

This might be particularly true for many of us, whose income is lost or curtailed due to the Coronavirus impact. Even if you have not been affected, chances are high that your cash-flows might have changed. So, you should consider visiting your financial plan and account for the necessary changes. You need to account for a temporary decline in income and understand the financial goals as in your wants that you may need to postpone to some future date.

External factors have changed

It’s not only personal circumstances that change over time. Change in the external factors can also have an impact on your finances. For example, the drop in interest rate may reduce your home loan EMI duration; good stock market performance might have helped you to attain some of your goals early. Even a change in tax structure can impact your financials. You should take all this into account to reflect on your financial plan.

To have confidence in your financial plan

Even if nothing has changed in external or internal circumstances, there are reasons for reviewing your financial plan. This makes it far easier for you to keep on the top of potential changes and ensure that your financial plan suits your changed situation.