What financial practice involves assessing your income against your expenses periodically?

The practice of assessing your income against your expenses periodically is known as a budget review. This process involves examining the money you earn and the money you spend to ensure that you are living within your means and following your financial goals. By regularly reviewing your budget, you can identify areas where you may be overspending, adjust your spending habits, or reallocate funds to savings or other financial priorities.

A budget review provides insight into your financial health and can help you make informed decisions for future spending and saving. It is a proactive approach to personal finance that helps maintain control over one’s financial situation, ensuring that expenses do not exceed income. This is essential for achieving short-term and long-term financial goals, making it a vital part of financial literacy.