Taking a fix: reading the Cashfulness home page in one minute
In short
On a boat, taking a fix is the moment you look at the instruments and work out where you are. In Cashfulness, that's the home page, the "Dashboard" item in the sidebar. You read it from top to bottom: the sentence, your net worth, four indicators, the two reports in miniature, the things to confirm and, at the bottom, where you're heading. Once a week, one minute is enough.
This page goes with lesson 4 of the free video course "Cashfulness step by step". The sections are in the same order as the video, and the names are the ones you'll see in the app.
Watch the lesson
1. The greeting and the sentence
At the top the app greets you with the nickname you chose when you signed up. Below it there's a sentence that sums up how your net worth has done since the start of the year, for example "Your net worth has been stable since the start of the year."
2. Net worth
It's the most important number in the app: what you own minus what you owe. Next to it you see how much it has changed and a small line with the trend of the last few months. Every transaction you record updates it.
Why the change isn't the year's profit. Sooner or later you'll compare the two figures and see that they don't match. It isn't a mistake, and there are two reasons:
- the change starts from the year's first snapshot, not necessarily from 1 January, and the date is written right there, for example "since 3 February";
- if you have accounts in a foreign currency, the exchange rate moves your net worth without going through the income statement.
The little "i" next to "Net worth" explains it too.
3. The four indicators
| Indicator | What it tells you |
|---|---|
| "Financial independence" | How much of what you own is in Assets+, things that earn: with a flow, like rent or a coupon, or by growing in value, like a fund. |
| "Liquid available" | The money you can spend right now, without selling anything. Below, across how many accounts. |
| "Revenue · YTD" | What has come in since 1 January. |
| "Cost · YTD" | What has gone out since 1 January. |
Side by side, revenue and cost already tell you whether this year you're building new wealth or eating into it.
4. The two reports in miniature
The "Balance sheet" panel is the snapshot: "Assets+", "Assets-" and "Liabilities". The "Income statement" panel is the film of the year: "Revenue", "Cost" and "Profit". Click and the full report opens.
5. Things to do
Two panels don't tell you things, they ask:
- "Recurring entries to confirm": recurring entries that have fallen due and are waiting for you;
- "Payments due": a bill, a tax, a fine.
They're the only places on the page where there's something to do. We look at them in lesson 5.
6. Everyday accounts
The "Operational accounts" panel shows banks, cards and cash at a glance; you choose which ones with "Customize". If you keep these accounts up to date, you've already done almost all the work of entering transactions.
Next to it, "Accounts needing attention" lists the ones with something to do, like a card to reconcile or an investment to update. When everything is fine, you'll read "All in order".
7. Where you're heading
The "Savings capacity" panel answers a different question: not where you are, but where you're heading. It keeps two different kinds of number apart:
- "Already committed each month" comes from your recurring entries: it isn't an estimate;
- "Typical income" and "Typical spending" are estimated from the months already closed. The current month doesn't count.
The last line is your course, for example "Net worth is rising by about … a month". With fewer than three closed months the app doesn't estimate anything and tells you so: a made-up number is worse than no number at all. And nothing is recorded here: it's a reading, not an entry.
In the same panel there's "How long it lasts": if your income stopped altogether, how long you'd keep going on the cash you have now, without changing how you live.
8. Budgets, recent transactions and privacy
At the bottom you'll find "Your budgets" (lesson 6) and "Recent transactions", with "Open ledger". The eye in the sidebar, "Hide amounts", masks every figure: handy on the train or when you're showing your screen to someone. Press it again, "Show amounts", and they're back.
Common mistakes
- Reading the change in net worth as profit. They're two different measures: look at the date next to the change.
- Expecting savings capacity from day one. It needs at least three closed months.
- Counting your home towards financial independence. The home you live in is an Asset−: you use it, it doesn't earn.
- Leaving things to confirm hanging. An unconfirmed recurring entry doesn't go into your books, and the figures on the page fall behind.
Frequently asked questions
Why doesn't the change in my net worth match the year's profit?
Because the change starts from the year's first snapshot, and the date is written next to it. And because, if you have accounts in a foreign currency, the exchange rate moves your net worth without going through the income statement.
Why doesn't savings capacity show any estimate?
It needs at least three closed months. With fewer, the app tells you so and doesn't estimate anything: the number appears on its own once there are enough months.
How do I hide the amounts?
With the eye icon in the sidebar, "Hide amounts". The same icon, "Show amounts", brings them back.
The next lesson
Lesson 5 · Recurring entries and payments due. Whatever repeats, you set up once; whatever falls due, like a tax or a fine, won't slip past you.
In the manual
The Dashboard chapter of the user manual describes the home page, quick entry and the language of colours.
Vittorio Giusti is an economist and psychologist, and he built Cashfulness.