annual review
A yearly examination of financial accounts, goals, and progress to adjust strategy.
Example
“Her annual review revealed she had exceeded her savings goal by $3,000.”
Memory Tip
ANNUAL — once a year, step back and see the full financial picture.
Why It Matters
An annual review helps you understand whether your money is working toward your goals and identifies areas where you may be overspending or underperforming. Without regular check-ins, you might drift away from your financial plans and miss opportunities to optimize your savings, investments, or debt repayment strategy.
Common Misconception
Many people think an annual review only means looking at their bank account balance or investment returns. In reality, it should involve evaluating your budget, checking progress on specific goals, reviewing insurance coverage, and assessing whether your overall financial strategy still fits your current life circumstances.
In Practice
A person might set a goal in January to save 15 percent of their income and pay down credit card debt from 8,000 dollars to 5,000 dollars by December. During their annual review in December, they discover they actually saved 12 percent and reduced debt to 6,200 dollars, so they adjust their budget for the next year to allocate an extra 200 dollars monthly toward debt while maintaining their savings target.
Etymology
From Latin 'annualis' meaning yearly plus Latin 'revidere' meaning to see again.
Common Misspellings
Build a budget and track your spending
Related Terms
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See Also
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