Today, the average person has multiple financial accounts that are managed in different ways. You might have a savings account, stocks, bonds and other assets. Keeping tabs on all these investments can be challenging.
A crucial component of managing your wealth is keeping track of your portfolio’s worth. It helps you monitor how diversified you are and identify any red flags that could affect your investment goals. You might have to log into various online platforms and services to monitor your portfolio performance and balances.
That’s where portfolio tracking comes in handy. Tracking allows you to streamline your finances and keep an eye on all your assets. It simplifies the process of monitoring personal finances through one convenient dashboard. Studies show that the market size of the portfolio management industry is projected to reach seven billion dollars by 2029.
Let’s take a closer look at what portfolio tracking can do for you.
What is Portfolio Tracking?
Portfolio tracking is a method of monitoring the values of your financial assets at regular intervals. It’s an efficient way to stay on top of your investment performance and track your portfolio’s value.
A good portfolio tracker should feature multiple investment accounts, such as your brokerage accounts, 401(k)s, IRAs, and stocks.
It should also have easy-to-use graphs and charts to help you visualize your progress.
Why Track Your Portfolio?
The main reason for tracking your portfolio is to keep an eye on your overall investment performance. It helps you make informed decisions about your investments.
It’s important to track your portfolio’s performance because it enables you to assess how well your investments are diversified. You can look at your portfolio’s risk level to determine whether your assets are properly diversified. If your investments are not diversified enough, you could be putting your investments at risk.
Portfolio tracking will help you identify any red flags. So, you can make adjustments to your portfolio that could help reduce risk. With a good wealth tracking app, you can easily keep an eye on the value of your investments, forecast your portfolio’s performance, and visualize your overall financial goals.
How to Track Your Investments
An online portfolio tracker is one of the best ways to track your investments. Several portfolio trackers out there can be used to log your investments.
If you like pen-and-paper, you can use a spreadsheet to log your assets. However, there are apps specifically designed to help you keep track of your investments.
Before you start tracking your investments, you must log into your financial accounts. You can do this by setting up an account with any of the following:
- Brokerage account – 401(k) or
- Other retirement accounts – IRA accounts (Traditional or Roth).
You can then track any of your investments by logging into your account and noting their current value. You can also use graphs or charts to visualize your portfolio’s performance.
How to Use Portfolio Tracking Software
If you decide to use portfolio tracking software, you will need to log into your financial accounts. It will enable you to track your investments and their current values with ease.
The investment tracker monitors the performance of your portfolio by keeping a regular log of your investments. You stay updated when logging new values. It also includes letting you know if your portfolio is trending upward or downward.
Monitor Your Portfolio’s Value
The first step in tracking your portfolio is to identify its current worth. It will help you establish a baseline for your portfolio and identify any red flags.
You will see your portfolio’s total value when logging into your wealth tracker app. It will also include a breakdown of each asset’s worth. Be sure to note your portfolio’s current worth so you can have a reference point moving forward.
Monitor Your Portfolio’s Risk Level
A critical component of tracking your portfolio is monitoring its risk level. It helps you keep tabs on your portfolio’s diversification, enabling you to figure out if you need to make adjustments.
You can simply check off a few boxes when logging your portfolio’s risk level. For example, you can indicate where your portfolio’s risk level falls on a scale between “low” and “moderate.”
Track Your Portfolio’s Performance
One way to track your portfolio’s performance is to create a baseline for your overall portfolio’s worth. You can then track your portfolio’s performance to see how it changes over time.
Research indicates that your ability to manage and shift your assets to your advantage depends on timely tracking. A good portfolio tracker will enable you to track your portfolio’s performance over time. With this information, you can determine if your portfolio is performing as expected and adjust your investments if necessary.
Visualize Your Portfolio’s Progress
One of the best ways to visualize your portfolio’s progress is to look at graphs and charts. It will enable you to see how your investments are performing over time. A good portfolio tracker will feature graphs and charts that show your portfolio’s value over time.
It helps you visualize your portfolio’s progress over time. You will also see if your investments are performing as expected and make adjustments as needed.
Benefits of Using Portfolio Tracking Software
- Organize Your Investments
When logging your portfolio, it can be easy to get lost in a sea of numbers. With portfolio trackers, you can keep your portfolio organized for easy investment tracking. You can also create folders or tags to keep track of each account or investment. It will help you stay organized and make it easier to log your portfolio regularly.
- Stay Updated
You can keep tabs on your investments in real-time so you can stay on top of any red flags. You can also keep track of your investments as they change to identify any noteworthy trends. Log into your portfolio regularly, at least once a week.
- Stay Accountable
Using investment tracking apps keeps you accountable for your investments. You can keep tabs on your investments to ensure your portfolio is on track for your long-term goals.
Keep in mind that the value of your investments will fluctuate over time. However, you can use portfolio tracking to identify any trends in your investments, such as an increase in value or a decrease in risk.
Conclusion
When you invest in the stock market, you might have a lot of money riding on the success of a single company. It’s important to know your investment portfolio’s strengths and weaknesses. You have to regularly monitor your portfolio, so you can make adjustments to your investments as needed.
Portfolio tracking is the best way to monitor the performance of your investments. It not only helps you keep tabs on the values of your investment portfolio but also helps you keep track of your overall progress towards financial goals.
