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Track Your Path to Financial Independence

Whether you're pursuing FIRE, CoastFI, or just want more options in life, Doughsense helps you see exactly when you'll achieve financial independence.

What is Financial Independence?

Financial Independence (FI) means having enough assets to live without working for money. The math is simple:

FI Number = Annual Expenses × 25

This is based on the 4% safe withdrawal rate - if you can live on 4% of your investments annually, you're financially independent.

FI Variations for Every Goal

LeanFI

Cover just the essentials. Perfect if you value time over luxury.

  • Calculate: Essential expenses only × 25
  • Example: £20,000/year expenses = £500,000 FI number

Standard FI

Maintain your current comfortable lifestyle without working.

  • Calculate: Current annual expenses × 25
  • Example: £40,000/year expenses = £1,000,000 FI number

FatFI

Financial independence with a luxurious lifestyle.

  • Calculate: Dream lifestyle expenses × 25
  • Example: £100,000/year expenses = £2,500,000 FI number

CoastFI

The sweet spot - have enough invested that it will grow to FI without adding more.

  • Doughsense calculates this automatically
  • Shows the exact date you can stop aggressive saving
  • Perfect for career breaks or lifestyle changes

Setting Up Your FI Dashboard

Step 1: Calculate Your FI Number

  1. Track your real expenses for at least 3 months
  2. Categorise into essential vs. discretionary
  3. Annual total × 25 = Your FI number
  4. Create goals for each FI level you're interested in

Step 2: Add Your Investment Accounts

Include everything that counts toward FI:

  • Workplace pensions (SIPP, workplace pension)
  • Personal pensions (ISAs)
  • Taxable investment accounts
  • Real estate investments

Don't include:

  • Primary residence (unless you'll sell it)
  • Cars or depreciating assets
  • Emergency funds (they're for emergencies)

Step 3: Set Realistic Growth Rates

When adding investment accounts, Doughsense provides preset growth rate options:

  • Investment Returns: Pre-configured rates for different investment types
  • Savings Rate: For standard savings accounts
  • Custom: Enter your own rate if needed

Historical averages to consider:

  • Stock market: 7-10% (use these nominal rates)
  • Bonds: 3-5%
  • Real estate: 3-5% appreciation + rental yield
  • Mixed portfolio: 5-8%

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

Pro tip: Choose conservative presets or custom rates. Better to be pleasantly surprised.

The Power of CoastFI

CoastFI is significant because it gives you options:

How to Find Your CoastFI Date

  1. Set your retirement age goal (traditional FI age)
  2. Enter your FI number as the target
  3. Doughsense calculates when current investments will reach FI
  4. That's your CoastFI date!

What CoastFI Means

Once you hit CoastFI:

  • You only need to cover current expenses
  • No more retirement savings required
  • Take risks: start a business, travel, pursue passions
  • Work becomes optional, not necessary

Example CoastFI Calculation

  • Current age: 30
  • Current investments: £150,000
  • Growth rate: 7%
  • FI number: £1,000,000
  • FI target age: 50

Result: If £150,000 grows at 7% for 20 years = £580,000

Not enough! But if you reach £250,000 by 35, you'll coast to £1M by 50.

Tracking Your Progress

Key Metrics to Monitor

FI Percentage

  • Current investments ÷ FI number × 100
  • Watch this climb monthly
  • Celebrate milestones (25%, 50%, 75%)

Years to FI

  • Based on current savings rate
  • See how changes affect timeline
  • Model different scenarios

Savings Rate

  • The most important metric
  • Higher rate = faster FI
  • Aim for 25%+ (50%+ for rapid FI)

Safe Withdrawal Amount

  • Current investments × 4%
  • This is your current passive income
  • Watch it grow toward your expense needs

Monthly FI Check-In

  1. Update investment balances
  2. Review savings rate
  3. Check FI percentage progress
  4. Adjust if needed

Optimising Your Path

Increase Income

  • Model salary increases
  • Add side hustles
  • Track ROI on skills/education

Reduce Expenses

  • Find your "enough" point
  • Cut what doesn't bring joy
  • Model the FI timeline impact

Optimise Investments

  • Maximise tax-advantaged accounts
  • Reduce fees (they compound negatively)
  • Maintain appropriate risk level

Scenarios to Model

"What if I save 50% instead of 30%?"

See exactly how many years this cuts from your FI timeline.

"What if I do geographic arbitrage?"

Model earning in expensive cities while planning to retire somewhere cheaper.

"What if markets return 5% instead of 7%?"

Stress test your plan with conservative returns.

"What if I take a mini-retirement?"

See how a year off affects your long-term timeline.

Common FI Mistakes to Avoid

1. Forgetting about taxes

  • Your FI number should be based on after-tax needs
  • Model tax-efficient withdrawal strategies

2. Not accounting for inflation

  • Don't worry - Doughsense automatically models inflation
  • Use nominal growth rates (what you see advertised)
  • Set plan targets as either "actual money" or "today's money" (inflation-adjusted)

3. Being too aggressive

  • Don't assume 12% returns
  • Don't cut expenses to misery

4. Ignoring life changes

  • Kids, health, interests change
  • Build in flexibility

The FI Mindset Shift

Financial Independence isn't about:

  • Never working again
  • Living on rice and beans
  • Extreme frugality

It IS about:

  • Having choices
  • Working on what matters
  • Security and peace of mind
  • Time freedom

Your FI Action Plan

This Week

  1. Calculate your real annual expenses
  2. Set your FI number (expenses × 25)
  3. Add all investment accounts to Doughsense
  4. Check your CoastFI date

This Month

  1. Optimise your savings rate
  2. Model 3 different FI scenarios
  3. Set milestone goals (25%, 50%, CoastFI)
  4. Start tracking monthly progress

This Year

  1. Increase income or reduce expenses by 10%
  2. Hit your first major FI milestone
  3. Build systems for sustained progress
  4. Connect with the FI community

Remember

The path to FI isn't just about the destination - it's about building a life you don't want to retire from. Use Doughsense to find your perfect balance between enjoying today and securing tomorrow.

Every pound saved is a step toward freedom. Every projection run is clarity gained. Every milestone reached is more life options unlocked.

Your FI journey starts with a single question: "When do I want to be free?"

Calculate Your FI Date →

Join thousands using Doughsense to track their path to financial independence. Free to start, powerful enough to get you there.