---
aliases: ["Monthly Portfolio Review"]
Is A: Procedure
Belongs to: "[[responsibility-personal-finance]]"
Cadence: Monthly
Owner: "[[person-luca-rossi]]"
---
# Monthly Portfolio Review

The monthly portfolio review keeps [[responsibility-personal-finance]] on track by providing a disciplined checkpoint for investment performance, asset allocation drift, and savings rate. Left unmonitored, portfolios drift out of alignment with long-term targets, and small spending creep erodes savings without being noticed. This procedure ensures decisions are data-driven and emotions stay out of investment management.

## Steps

- [ ] Log into all investment and brokerage accounts and record current balances
- [ ] Calculate the portfolio's total value and compare against last month — note the absolute and percentage change
- [ ] Check asset allocation against the target allocation — identify any asset class that has drifted more than 5% from its target weight
- [ ] If drift exceeds 5%, determine the rebalancing trades needed and execute them (or schedule them for the next trading day)
- [ ] Calculate this month's [[measure-savings-rate]]: (income - expenses) / income — compare against the target rate
- [ ] Review [[measure-net-worth]] trend: update the tracking spreadsheet with this month's data point
- [ ] Note any significant market events or personal financial changes that affected the portfolio this month
- [ ] Review recurring expenses for any new subscriptions or cost increases that should be addressed
- [ ] Set any action items for the coming month: contributions to fund, bills to review, or financial goals to adjust

## Notes

- Rebalancing is mechanical, not emotional. If the allocation says sell, sell. If it says buy, buy. The whole point of having a target allocation is to remove in-the-moment decision-making.
- Do not check portfolio performance more than once per month outside of this review. Frequent checking leads to anxiety-driven decisions that hurt long-term returns.
- The savings rate is often more impactful than investment returns for wealth building in the early years. Focus energy there before obsessing over fund selection.
- Keep this review under 30 minutes. If it takes longer, the tracking system needs simplification — consider consolidating accounts or automating data pulls.
- This monthly data feeds into the [[procedure-quarterly-financial-planning]] for longer-term strategic decisions. Keep the records clean and consistent.
