Why should you track your wealth?

7 April 2021
Why should you track your wealth

To have a definitive view of all your investments.

You must track your wealth so you can get a definitive view of everything you have invested your hard-earned money in. Say you purchased $1,000 of stock and you monitor them on the online brokerage site you bought them through. And then your real estate. You purchased a property a few years ago, and you have a spreadsheet outlining the income you make and how much it’s worth. But there are no other investments in the spreadsheet. Different platforms, various spreadsheets. It can all get rather confusing, and rightly so. You need to bring all these investments into one place so you can track everything simultaneously.

To view all your investments in one currency, no matter what the currency of each investment is.

Are all your investments denominated in a single currency? Do you have investments in various countries? To be honest in both cases you should still track your wealth in one place. However, if multiple currencies are floating around in your portfolio then you must find a way to see all of your investments in any currency you like. Additionally, it’s important to fully understand the effects of currency conversion on the value and performance of your investments. Fluctuations in currencies can take you by surprise, and often not in a positive way.

To get a like-for-like comparison on the value and growth of your assets.

You have multiple types of investments, from stocks, to crypto currencies, real estate, to jewellery? Without a proper wealth tracking tool in place it’s next to impossible to compare them effectively. Even if you monitor some of these on various different platforms like an online brokerage site, you may not be able to compare them using the same metrics. Aggregating everything on a purpose-built platform that provides the same metrics, enables you to easily understand how well one investment performs compared to another.

Measure your investments to fully understand performance.

You need to find a monitoring tool that helps you measure and fully understand the true growth of all your investments, without which you can’t make informed decisions about your future investment strategy. These are two key metrics.

Money-weighted return (MWR, which is also known as IRR) is a compound growth rate, and in essence it is the rate at which your money is growing every year. You should be able to measure it for each individual investment you have, and also for your entire portfolio.

Time-weighted return (TWR), which is a very useful metric for liquid investments. TWR shows how an investment truly performed in relation to the money invested at the beginning, eliminating the distortion that additional cash deposits or withdrawals may have. For example, if you invest $100 in the stock market, and this grows by 10% in one year, the TWR is 10%. Although your MWR may be different, if half way through the year you withdrew or deposited $50. Did you move cash when the market was low or high?


So there you have it. An outline of the top reasons tracking your wealth is so important, but there are many more. Our hope is this will help guide you when looking for the best wealth tracking application or platform.

Exirio has created an app that allows you to do all of this, and more. The idea was born from the need to have a complete and informative app that allows the tracking of all investments, in one place, in any currency. We did not find one, so we built it. Check out our website to learn more and sign up. Start tracking your wealth today!

Try our demo or register a new account

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