Tracking Your Financial Health¶

Just like monitoring your physical health, tracking financial metrics helps you understand where you stand and what needs attention. Doughsense automatically calculates key financial indicators to give you a clear picture of your financial wellness.

General Benchmarks

The metrics and benchmarks shown are based on general financial guidelines and may not suit everyone's situation. These are educational indicators, not personalised recommendations. Always consider your unique circumstances. See our full disclaimer.

Understanding Financial Metrics¶

Think of metrics as your financial vital signs. Just as a doctor checks your blood pressure and heart rate, Doughsense monitors indicators like net worth, savings rate, and debt ratios.

Two Types of Metrics¶

Portfolio Metrics 💰

Focus on what you own and owe
Show your overall financial strength
Like checking your weight and muscle mass

Budget Metrics 📊

Focus on money flowing in and out
Show how well you manage cash
Like tracking your diet and exercise

Portfolio Metrics: Your Financial Strength¶

Net Worth - Your Financial Snapshot¶

What it is: Everything you own minus everything you owe

Think of it like: Your financial report card showing overall progress

What's included:

✅ All your accounts (savings, investments, pensions)
✅ All your assets (home, car, valuables)
➖ All your debts (loans, credit cards, mortgages)

Example:

text Sarah's Net Worth: Owns: £365,000 (accounts + home + car) Owes: £215,000 (mortgage + car loan) Net Worth: £150,000text

Healthy progress: Should generally increase over time

Liquid Net Worth - Your Financial Flexibility¶

What it is: Only counting money you can access quickly

Think of it like: Your financial emergency readiness

What's included:

✅ Cash and savings accounts
✅ Accessible investments
❌ Property (can't sell quickly)
❌ Locked pensions
➖ All debts

Why it matters: Shows if you could handle emergencies without selling your home

Healthy range: At least 3-6 months of expenses

Credit Utilisation - Your Credit Health¶

What it is: How much of your available credit you're using

Think of it like: How full your credit "tank" is

Example:

text Credit Card A: Using £500 of £2,000 limit (25%) Credit Card B: Using £1,000 of £5,000 limit (20%) Total: Using £1,500 of £7,000 (21%)text

Traffic Light Bands:

🟢 Under 30%: Typically viewed favourably by lenders
🟡 30-50%: May impact borrowing capacity
🔴 Over 50%: Often considered high by lenders

Why it matters: Lenders often view high credit utilisation as an indicator of financial stress. Lower utilisation is generally associated with better lending terms.

Debt to Asset Ratio - Your Leverage Level¶

What it is: How much you owe compared to what you own

Think of it like: How much of your stuff is actually paid for. A ratio of 75% means you only truly own 25% of your assets - the rest belongs to lenders.

Example:

text Mike's Leverage: Total Assets: £400,000 Total Debts: £300,000 Ratio: 75% (quite high!)text

Common Benchmarks:

🟢 0-40%: Conservative leverage
🟡 40-60%: Moderate leverage, common for property owners
🔴 Over 60%: High leverage, more sensitive to market changes

Loan to Value - Your Property Position¶

What it is: How much you owe on assets compared to their value

Think of it like: How much of your home you actually own

Especially important for:

Mortgages on property
Car loans
Any secured debt

Example:

text Home value: £300,000 Mortgage remaining: £180,000 LTV: 60% (you own 40%)text

Common Benchmarks:

🟢 0-80%: Safe zone, more equity protection
🟡 80-90%: Caution zone, limited equity buffer
🔴 Over 90%: Risky, vulnerable to market downturns

Why it matters:

Refinancing: Lower LTV may qualify for better mortgage rates
Risk Buffer: More equity means more protection against market downturns
Borrowing Power: Lower LTV can unlock home equity lines of credit

Budget Metrics: Your Financial Fitness¶

Cash Flow - Your Monthly Bottom Line¶

What it is: Income minus expenses each month

Think of it like: Are you gaining or losing financial weight?

What to look for:

🟢 Positive: You've got options
🟡 Near zero: Living paycheck to paycheck
🔴 Negative: Going into debt

Common target: Many financial experts suggest saving 10-20% of income

Savings Rate - Your Financial Discipline¶

What it is: Percentage of income you save

Think of it like: Your financial fitness level. It's often considered a key factor in building wealth over time.

How it's calculated:

text Monthly income: £4,000 Monthly savings: £800 Savings rate: 20%text

Common Benchmarks:

🔴 Under 10%: Below typical savings targets
🟡 10-20%: Common savings range
🟢 Over 20%: Strong savings pattern

Target: Financial experts often recommend saving at least 20% of income

Debt to Income Ratio - Your Debt Burden¶

What it is: How much of your income goes to debt payments

Think of it like: How heavy your debt backpack is. It's a key indicator of financial health and affects your ability to borrow.

What's included:

Minimum credit card payments
Loan payments
Mortgage payments

Most lenders use this ratio when evaluating borrowing capacity.

Common Benchmarks:

🟢 Under 28%: Generally considered manageable
🟡 28-36%: May affect borrowing capacity
🔴 Over 36%: Typically indicates high debt burden

Target: Industry standard recommends staying below 28%

Financial Runway - Your Safety Buffer¶

What it is: How long you could survive without income

Think of it like: Your financial fuel tank. It shows how long you could maintain your current lifestyle without any income, using only your liquid savings.

How it's calculated:

text Liquid savings: £15,000 Monthly expenses: £3,000 Runway: 5 monthstext

Common Targets:

🔴 0-3 months: Critical zone, rebuild emergency fund
🟡 3-6 months: Common minimum target
🟢 6+ months: Frequently recommended target

Target: Financial advisors typically recommend at least 6 months of expenses

Needs/Wants/Savings Breakdown¶

What it is: Where your money actually goes

Think of it like: This breakdown shows where your money actually goes each month, helping you understand if your spending aligns with financial best practices.

The 50/30/20 Rule:

🔴 50% Needs: Housing, food, utilities, insurance
🟡 30% Wants: Entertainment, hobbies, dining out
🟢 20% Savings: Emergency fund, investments, debt payoff

Your breakdown shows:

Whether spending patterns align with the 50/30/20 guideline
If essential expenses are higher than typical
How your savings compare to common benchmarks

Interactive Metric Cards¶

Visual Indicators¶

Each metric now includes visual elements to help you quickly assess your financial health:

Bullet Charts: Show your current value against colour-coded zones
Target Lines: Display recommended targets for each metric
Status Indicators: Position markers that move based on your performance
Mini Charts: Compact visualisations right on the metric card

Dashboard Indicator Badges¶

The dashboard displays coloured indicator badges on each metric card for instant health assessment:

How They Work:

Each metric has predefined healthy, caution, and warning zones
The badge colour changes based on your current value
Updates automatically when viewing different dates or ages
Provides at-a-glance financial health status

Colour Meanings:

🟢 Green: You're doing well in this area
🟡 Amber: Worth monitoring, approaching limits
🔴 Red: Requires attention and action
⚪ Grey: Neutral or informational metric

Why This Helps:

Unlike the detailed descriptions within each metric, these badges give you an immediate visual summary of your entire financial health on the dashboard, helping you quickly identify which areas need your attention.

Click for Details¶

Clicking on any metric card opens a detailed modal with:

Full explanation of what the metric means
Interactive charts powered by Highcharts
Specific benchmarks and targets
Practical examples and analogies
Action items for improvement

Budget Flow Visualisation¶

The Budget tab includes a special Sankey flow chart showing:

Money flowing from income sources
Distribution to expenses and savings
Visual representation of your cash flow

Using Metrics Effectively¶

Check Monthly¶

Set a monthly "financial checkup" to review your metrics, just like weighing yourself regularly.

Look for Trends¶

One month doesn't matter - watch the direction over time.

Set Targets¶

Use metrics to set goals based on the benchmarks:

"Increase savings rate to 20%"
"Reduce credit utilisation below 30%"
"Build 6-month runway"

Take Action¶

Each metric suggests actions:

Low savings rate? → Review budget for cuts
High credit use? → Pay down cards
Low runway? → Build emergency fund

Red Flags to Watch For¶

🚨 Declining net worth

You're going backwards

🚨 Negative cash flow

Spending more than earning

🚨 Credit use over 50%

Debt getting dangerous

🚨 No financial runway

One problem = crisis

🚨 Debt payments over 40% of income

Too leveraged

Your Financial Health Journey¶

Remember: Perfect metrics aren't the goal - improvement is. Whether you're starting with negative net worth or already financially strong, what matters is moving in the right direction.

Quick Health Check¶

Rate yourself on each:

Score:

5/5: Excellent health!
3-4/5: Good, keep improving
1-2/5: Time for changes
0/5: Don't panic - start with one

Learn More About Financial Metrics¶

Understanding Financial Ratios¶

Personal Finance Ratios - Comprehensive guides to key financial measurements
Credit Score Fundamentals - How credit utilisation affects your financial options
Debt Management Strategies - Techniques for optimising debt ratios

Building Financial Strength¶

Emergency Fund Guidelines - Research-based approaches to safety buffers
The 50/30/20 Budget Rule - Origins and variations of this budgeting framework
Savings Rate Optimisation - Strategies for increasing your savings percentage

Tools and Calculators¶

Debt-to-Income Calculators - Interactive tools for ratio analysis
Net Worth Trackers - Templates and apps for monitoring progress
Financial Health Assessments - Comprehensive evaluation frameworks

Next Steps¶

Review your Dashboard - See all metrics at a glance
Pick one metric to improve - Focus beats perfection
Set a metric-based goal - Use Plans to track
Check progress monthly - Build the habit
Celebrate improvements - Every step counts

Your financial health is a journey, not a destination. Use these metrics as your guide to making informed decisions and building a stronger financial future.

Remember: These metrics work together. Improving one often helps others. Start where you are, and keep moving forward!

Note: The ranges and benchmarks shown are based on common financial guidelines and may not apply to everyone's situation. Consider your personal circumstances when setting targets.