Keep steering the ship

Do you think that a lot of people ignore their personal finances? I suspect that they do, although perhaps not completely. Maybe they do pay their bills and renew their mortgage and maybe even contribute to their RRSP... but I think that a lot of people allow their overall understanding of their financial picture to get out of date. And when that happens, it is almost certain that you aren't making the very best choices for yourself that you can.

What I'm getting at is that your money life goes on with or without you. Interest accumulates on your debts, the stock markets rise and fall, your salary and inflation move forward (hopefully the right one goes faster). And your personal circumstances change. Married, divorced, kids, education, medical costs - it's all different every year.

So this year's financial plan will need some tweaking next year. If you don't do it for one year it may only be off by a bit, but if you leave it for three years I can almost guarantee that you will feel like throwing it out and starting again. The best way to steer a large ship is by making small, frequent course corrections. Your financial plan will benefit greatly from the same approach.

Disclosure: I have never steered a ship of any size in the real world!