Managing Your Finances

This guide covers how to set up and manage your portfolio and budget in Doughsense. Whether you have a single salary or multiple income streams, these two systems give you a complete picture of your finances.

The Two-Part System

Doughsense uses two systems to track everything:

Portfolio = What you're worth (assets - debts)

Budget = Your cash flow (income - expenses)

• Portfolio tracks your wealth (what you have)
• Budget tracks your habits (how you earn and spend)

Portfolio: Your Net Worth

Everything you own minus everything you owe.

Accounts

Accounts are where your money lives. Doughsense supports five types:

Current Accounts

• Everyday spending accounts
• Joint accounts for shared expenses

Savings Accounts

• Emergency fund
• House deposit savings
• Holiday fund
• High-yield savings for better returns

Escrow Accounts

• Solicitor holding accounts
• Completion funds held in trust

Investment Accounts

• Investment platforms (Hargreaves Lansdown, AJ Bell, Vanguard)
• Robo-advisors (Nutmeg, Moneyfarm)
• Crypto holdings
• Individual stocks and shares

Pension/Retirement

• Workplace pension
• SIPP (Self-Invested Personal Pension)
• ISAs (Stocks & Shares, Lifetime)
• International retirement accounts (401k, IRA)

Adding an Account

1. Go to Portfolio in the sidebar, then click Add Account on the Accounts page
2. Pick your type
3. Name it something memorable ("Tech Stocks" rather than "Investment Account 3")
4. Enter current balance
5. Select a growth rate:
   • Choose from presets (Savings, Investments, etc.)
   • Or select "Custom" to enter your own

Growth Rate Options

Doughsense provides smart presets for each account type:

• Savings: Conservative rate for savings accounts
• Investments: Balanced rate for investment accounts
• Inflation: Uses your profile's inflation setting
• Vehicles: Depreciation rate for vehicles
• None: Zero growth rate
• Custom: Enter specific rates like:
  • High-yield savings: 2-5%
  • Index funds: 7-8% (historical average)
  • Crypto: Varies (consider 0% for safety)
  • Individual stocks: 5-10%

Important: Use nominal rates (what's advertised). Doughsense automatically handles inflation calculations.

Assets

Not everything needs tracking - just items that significantly impact your net worth.

What's Worth Tracking

Property

• Your home (if you own it)
• Buy-to-let properties
• Land

Vehicles (if they're worth something)

• Your car (expect depreciation)
• Motorcycle, boat, RV
• Classic cars that might appreciate

Other Valuables

• Business ownership stake
• Expensive collectibles (watches, art)
• Anything worth £5k+ that you could sell

Adding Assets

1. Go to Portfolio in the sidebar, then click Add Asset on the Assets page
2. Be realistic about value (check comparable sales)
3. Set growth rates:
   • Property: Select "Property Growth" preset or custom 2-4% yearly
   • Cars: Custom -10-15% yearly
   • Collectibles: Custom 0% is safe (unpredictable)

Liabilities

Track what you owe so you can plan to reduce it.

Common Liabilities

Credit Cards

• Current credit card balances
• Store cards
• Any revolving credit lines

Loans

• Student loans
• Car loans
• Personal loans
• Money borrowed from family (yes, track it)

Mortgages

• Primary home mortgage
• Investment property loans
• Home equity lines of credit

Adding Debts

1. Go to Portfolio in the sidebar, then click Add Liability on the Liabilities page
2. Enter:
   • Current balance (what you actually owe)
   • Interest rate (find it on your statement)
   • Minimum payment (for planning)

Your Net Worth

Assets - Liabilities = Net Worth

Doughsense calculates this automatically and shows you:

• Current net worth
• Monthly changes
• Progress over time
• When you'll hit major milestones

Budget: Your Cash Flow

Track money as it flows through your life.

Income

Track all your income sources.

External Income (Money from the world)

• Salary
• Freelance/contract work
• Side hustle earnings
• Online shop or marketplace income
• Gifts
• Tax refunds

Account Income (Money from your money)

• Investment dividends
• Savings account interest
• Withdrawals for spending
• Crypto staking rewards
• Rental income

Setting Up Income Streams

1. Go to Budget in the sidebar, then click Add Income on the Income page
2. Give it a clear name ("Design Freelancing" not "Income 2")
3. Enter details:
   • Amount: Can be gross or net (use the toggle to switch)
   • Frequency: Match reality (weekly/biweekly/monthly)
   • Start date: When it begins
   • End date: For contract work or temporary income
   • Income Breakdown (optional): Add line items for tax, NI, pension, and other deductions to model your full pay structure
   • Tax-free percentage (optional): For pension income, set the portion that's tax-free (e.g., 25%)
   • Withdrawal allowance (optional): Link to a tax allowance to track usage against limits

Tips for Variable Income

Freelancers: Use your last 3 months' average, or lowest month if you prefer a conservative estimate.

Separate streams: Track each income source separately to see what's worth your time.

Bonuses: Add as one-time income when confirmed, not when expected.

Line items and variable income: If you use percentage-based line items (e.g., 25% for tax), they automatically adjust when your income changes, so there's no need to recalculate deductions manually.

Expenses

Three types of expenses, each with a different destination:

External Expenses (Money leaving your ecosystem)

• Rent or mortgage payments
• Streaming services and subscriptions
• Groceries and takeout
• Gym membership
• Utilities, insurance, phone bills

Account Expenses (Money moving to savings/investments)

• Emergency fund building
• Investment contributions
• House deposit savings
• Travel fund

Liability Expenses (Debt payments)

• Credit card payments
• Student loan payments
• Car payment
• Extra mortgage principal
• Extra debt reduction payments

Setting Up Expenses

1. Go to Budget in the sidebar, then click Add Expense on the Expenses page
2. Name it clearly ("Coffee Shop Spending" not "Miscellaneous")
3. Key details:
   • Amount: Be realistic, check last 3 months
   • Frequency: Match the billing cycle
   • Target: Where is this money going?

Linking Expenses to Accounts

Linking expenses to specific accounts and debts is where your projections start matching reality:

Link savings expenses to specific accounts

• "Emergency Fund" expense linked to "Emergency Savings" account
• Watch balances grow automatically
• See when you'll hit targets

Link debt payments to specific debts

• "Extra Card Payment" linked to "Barclaycard"
• Watch balances shrink
• See your debt-free date

Result: Your budget drives your net worth automatically.

Where Does My Surplus Go?

Ever wonder what happens to the money left over after bills are paid? That's your cash flow surplus - and by default, it just disappears from projections.

The Problem

You earn £3,500. You spend £2,800 on bills and life. That £700 leftover should be building wealth somewhere, right?

Without the Cash Flow Sweep feature:

• Your budget shows +£700/month surplus
• But your account projections don't grow by £700
• Over 10 years, that's £84,000+ missing from your future

The Solution: Cash Flow Sweep

Enable sweep and tell Doughsense where your leftover money actually goes.

How to enable it:

1. Go to Settings (via the user menu in the sidebar) > Financial > Methodology
2. Toggle "Cash Flow Sweep" on
3. Pick your sweep account (usually your main savings or current account)
4. Save

What happens next:

• Every month, your surplus automatically credits to that account
• Deficits (spending more than earning) debit from it
• Your projections finally show realistic wealth accumulation

Example

Monthly budget:
Income: £4,200 (salary)
Expenses: £3,400 (rent, bills, food, fun)
Savings contribution: £400 (linked to ISA)

Without sweep:
- Budget shows: +£800 surplus
- ISA grows by £400/month
- The other £400? Nowhere in projections

With sweep (targeting current account):
- Budget shows: +£800 surplus
- ISA grows by £400/month
- Current account grows by £400/month
- Projections match reality

Keeping Things Accurate

Monthly Updates

Set a recurring reminder to update your finances once a month:

1. Update all account balances
2. Check your net worth progress
3. Review budget vs. reality
4. Adjust next month's plan

Getting Started Gradually

Week 1: Just the basics - main current account, savings, credit cards, monthly income and rent.

Month 1: Fill in the gaps - all accounts, all debts, major expenses.

Month 3: Fine-tune - adjust growth rates, add all subscriptions, model different scenarios.

Realistic Estimates

Growth Rates: When in doubt, go lower.

• Pick conservative presets or use custom rates with lower values
• Promised 12% returns? Use 8%
• "Guaranteed" 5%? Use 3%
• Crypto? Use 0% (let reality surprise you)
• Remember: These are nominal rates - Doughsense handles inflation

Expenses: When in doubt, go higher.

• Think you spend £200 on food? Probably £300
• Don't forget annual expenses (insurance, holidays)
• Always add an emergency buffer

Linking Everything

For the most accurate projections:

• Link every debt payment to its corresponding debt
• Link every savings contribution to its target account
• This is what makes Doughsense projections match reality

Common Questions

"How honest should I be about my spending?" Completely. Doughsense is a tool - the more accurate your data, the more useful the output.

"My income varies a lot. What do I enter?" Track each source separately. Use your 3-month average or your worst month, whichever you prefer.

"Should I track my morning coffee?" Only if it matters to you. £5 daily = £150 monthly = £1,800 yearly. You decide whether that's worth tracking.

"I forgot to update for 3 months..." Just update now. Progress is better than perfection.

"Is my net worth supposed to be negative?" If you have student loans or are early in your career, yes. This is normal. Tracking it is the first step to improving it.

What's Next?

• See your financial future - Watch your money grow over time with timeline projections
• Set financial goals - Create measurable milestones
• Guide to financial independence - Track your path to FI
• Freelancer tax and budgeting - Tips for variable income