Why is it important to review a budget regularly?

Regularly reviewing a budget is crucial because it ensures that the budget accurately reflects the current financial situation. Financial circumstances can change due to various factors such as changes in income, unexpected expenses, or shifts in financial goals. By routinely assessing the budget, individuals can identify areas where adjustments may be necessary to accommodate these changes, ensuring they remain aligned with their financial objectives. This process helps in effective cash flow management, aids in prioritizing expenses, and enhances overall financial planning. Such reviews empower individuals to make informed decisions based on their current financial reality rather than relying on an outdated or static budget.