6 Personal Finance Metrics You Can’t Afford Not to Track
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Everyone wants to achieve financial success, but how do you know which personal finance metrics to track?
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If you want to be
more purposeful in achieving financial success,
these are the financial metrics you need to pay attention to.
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Personal Finance Metric #1: Income
We’ll start out with the most basic personal finance metric that you probably already know. How much money are you bringing in every month?
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One of the easiest ways to decrease your expenses is just to start tracking them and see where your money is going.
Personal Finance Metric #2: Expenses
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If you’re already tracking your income and expenses, your savings rate is easy to measure.
Personal Finance Metric #3: Savings Rate
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If there was only one personal finance metric I could track, I would choose net worth above all others.
Personal Finance Metric #4: Net Worth
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Personal Finance Metric #5: Passive Income
Passive income is just money coming in the door that you don’t have to work for. Usually, passive income is the result of your money working for you.
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