Become someone who sees their financial system as a whole
In 5 min you'll know: how to build a 5-metric dashboard that shows your financial health across every area at once
In Block 2, Lesson 1 you ran your financial diagnosis: you mapped assets, liabilities and goals. Now we go further. Your financial system is not a collection of scattered accounts and insurance policies — it is an ecosystem where every decision affects the others. The mortgage payment limits investment. Income tax reduces savings. A poorly chosen insurance policy wastes money that could earn returns elsewhere. The rule: build a dashboard with 5 metrics that show you the financial health of each area at the same time.
Before you continue: you did your financial self-diagnosis in Block 2 — did you know that exercise is the foundation for a complete financial system?
(Answer in the next paragraph.)
The five metrics that matter: (1) effort rate — total instalment payments divided by net income, should be below 35%; (2) liquidity ratio — emergency fund in months of expenses, minimum 3; (3) savings rate — percentage of income left after expenses and obligations, target 20%; (4) protection coverage — active insurance policies vs. identified risks, with no gaps; (5) net-asset growth — change in net worth month over month, positive. These five metrics tell you more than your bank-account balance.
The most common mistake is optimising one area and neglecting the rest. The person who pays a low monthly mortgage with a high spread because "it saves me each month" ignores that they are paying thousands more in total. The person who invests everything in shares and has no emergency fund is forced to sell low when an unexpected expense arises. The person who maximises tax deductions through a (retirement savings plan with tax incentives) but cannot pay off their credit card is losing money: the cost of debt (18–20%) exceeds the tax benefit (20% deduction on limited contributions).
The (Portuguese securities market regulator) supervises financial markets in Portugal. When you invest — in shares, funds, PPR, ETFs — you are under the protection and rules of the CMVM. Before taking on any financial product, check the CMVM register to verify that the entity is authorised. If it is not registered, it is not an investment — it is risk without a safety net.
Download the 5-metric financial dashboard (1 page) →
Your promise: This month, first Saturday at 10am, I will fill in the 5-metric dashboard with my real data.