That is the main reason I believe most investors should focus on the amount of passive income their household generates each year. That yardstick keeps the focus on what matters most to a majority of people - the money coming in through the door. I don't care if you are investing in stocks for dividend income, investing in real estate for rental income, or investing in bonds for interest income, I just want you to be honest with yourself about what it is you are trying to achieve. Why, specifically, are you making the investment?
You'll be surprised how facing that question directly can help protect you against a host of foolish mistakes.