When should a person regularly review their balance sheet?

Reviewing a balance sheet after major life events is crucial for several reasons. Major life events such as marriage, the birth of a child, buying a home, or experiencing a job change can significantly affect an individual's financial situation. These events often lead to changes in income, expenses, assets, and liabilities, all of which are critical components of the balance sheet.

By assessing the balance sheet following such events, a person can gain a clearer understanding of their net worth, adjust their financial goals, and better plan for the future. This helps in identifying areas where they may need to cut back on spending or where they can afford to invest more. It also ensures that they stay on top of their financial health, making informed decisions about investments, savings, and spending aligned with their new circumstances.