Are you Tracking These 4 Crucial Metrics?
Easily become a better dividend investors by doing this.
Learning to track key metrics is crucial for dividend investing.
It gives you more information. And more information leads to better investment decisions.
Continually making better decisions gets you to your goal (becoming financially free) faster.
It’s undoubtedly in your best interest to meticulously track your portfolio.
The problem?
Most people have no idea whether they are behind, on schedule, or right on track.
So today I thought I’d tell you what I think are the four most important metrics.
The ones that should be tracked as much as humanly possible…
1. Portfolio Value 📈
This one’s pretty obvious I suppose. But you’d be surprised at the amount of investors who don’t know the value of their portfolio.
It gives you an idea of how far you are from where you want to be.
But it’s more than that.
It’s:
Seeing if you are properly diversified
Seeing how different positions are performing
Seeing your how much capital is currently allocated to stocks vs cash
2. Dividend income 💰
You should keep track of both your annual dividend income and your monthly dividend income.
It’s cool to look at both and visualize where you currently are.
For example - my yearly dividend income is sitting at $3,500 right now.
That’s almost a full month of freedom! And it motivates me to keep investing to grow that number.
You can do the same, and I’m sure you’ll find it just as motivating as me.
3. Cost of living 💥
This is another one that’s perhaps obvious to track, but very few people could tell you their number when questioned.
Track your monthly living costs and continue to update this as each month passes.
Your monthly cost of living is your target. Your end goal.
Once you hit that number from your dividend payments, you are officially financially free.
So make sure you know what that number is!
4. How long is left until you can live off dividends 💵
This one is tough.
When you first start investing, it will be decades-long (most likely).
But you will find great motivation and inspiration in consistently lowering it.
Bit by bit, brick by brick.
You will slowly but surely chip it down.
And if you’re anything like me. You’ll find that very rewarding.
You can easily find out how long you have left by using my spreadsheets (which you can get here).
This is your big countdown.
Whatever that number is. Once it reaches 0…
You’re free.
Forever.
- Dividendology
Link to download my spreadsheets: https://www.patreon.com/dividendology
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