diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..b2c9567
--- /dev/null
+++ b/.env.example
@@ -0,0 +1,11 @@
+# IMPORTANT: Generate a secure encryption key before deploying
+# Run: openssl rand -base64 32
+# Then replace the value below with your generated key
+
+ENCRYPTION_KEY=change-this-to-a-secure-random-key
+
+# Optional: Set custom port (default is 7654)
+# PORT=7654
+
+# Environment
+NODE_ENV=production
diff --git a/.gitignore b/.gitignore
index 5ef6a52..82c87bc 100644
--- a/.gitignore
+++ b/.gitignore
@@ -32,6 +32,7 @@ yarn-error.log*
 
 # env files (can opt-in for committing if needed)
 .env*
+!.env.example
 
 # vercel
 .vercel
@@ -39,3 +40,10 @@ yarn-error.log*
 # typescript
 *.tsbuildinfo
 next-env.d.ts
+
+# Docker
+docker-compose.override.yml
+
+# User data (encrypted local storage)
+data/*
+!data/.gitignore
diff --git a/DEPLOYMENT.md b/DEPLOYMENT.md
new file mode 100644
index 0000000..69fbe44
--- /dev/null
+++ b/DEPLOYMENT.md
@@ -0,0 +1,148 @@
+# Capsule Budget - ZimaOS Deployment Guide
+
+## Quick Deploy
+
+1. **Clone or upload this repository to your ZimaOS device**
+
+2. **Run the deployment script:**
+   ```bash
+   ./deploy.sh
+   ```
+
+   This will:
+   - Generate a secure encryption key
+   - Clear any test data
+   - Build the Docker image
+   - Start the container
+
+3. **Access Capsule:**
+   - Open browser to `http://your-zima-ip:7654`
+   - Create your account and start budgeting!
+
+## Manual Deployment
+
+If you prefer manual setup:
+
+1. **Create .env file:**
+   ```bash
+   cp .env.example .env
+   ```
+
+2. **Generate encryption key:**
+   ```bash
+   openssl rand -base64 32
+   ```
+   
+3. **Update .env with your key:**
+   ```bash
+   ENCRYPTION_KEY=your-generated-key-here
+   ```
+
+4. **Build and start:**
+   ```bash
+   docker-compose up -d
+   ```
+
+## ZimaOS Integration
+
+### Using ZimaOS Apps
+
+If ZimaOS supports custom apps:
+
+1. Navigate to Apps section
+2. Click "Add Custom App"
+3. Point to this directory
+4. Configure port: 7654
+
+### Using ZimaOS File Manager
+
+1. Upload project via web interface or SMB
+2. SSH into ZimaOS
+3. Navigate to project directory
+4. Run `./deploy.sh`
+
+## Data Persistence
+
+All user data is stored in `./data/` directory:
+- User credentials (hashed)
+- Budget data (encrypted with AES-GCM)
+- Transaction history
+
+**Backup Strategy:**
+```bash
+# Backup data
+cp -r data data-backup-$(date +%Y%m%d)
+
+# Or use ZimaOS snapshot feature
+```
+
+## Management Commands
+
+```bash
+# View logs
+docker-compose logs -f
+
+# Stop Capsule
+docker-compose stop
+
+# Restart Capsule
+docker-compose restart
+
+# Stop and remove container
+docker-compose down
+
+# Rebuild after updates
+docker-compose build --no-cache
+docker-compose up -d
+```
+
+## Updating Capsule
+
+```bash
+# Pull latest changes
+git pull
+
+# Rebuild and restart
+docker-compose down
+docker-compose build
+docker-compose up -d
+```
+
+Your data in `./data/` will persist across updates.
+
+## Security Notes
+
+- Change the default ENCRYPTION_KEY before first use
+- Keep your `.env` file secure and never commit it
+- Use ZimaOS firewall to restrict access if needed
+- Consider VPN-only access for additional security
+
+## Troubleshooting
+
+### Container won't start
+```bash
+# Check logs
+docker-compose logs
+
+# Verify .env file exists
+ls -la .env
+```
+
+### Port already in use
+Edit `docker-compose.yml` and change port mapping:
+```yaml
+ports:
+  - "8080:7654"  # Change 8080 to your preferred port
+```
+
+### Data not persisting
+Ensure `./data` directory has correct permissions:
+```bash
+chmod 755 data
+```
+
+## Support
+
+For issues or questions:
+- GitHub: https://github.com/nmemmert/budget
+- Check logs: `docker-compose logs -f`
diff --git a/Dockerfile b/Dockerfile
index d4ef318..2cb1755 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,4 +1,4 @@
-FROM node:20-alpine
+FROM node:18-alpine
 
 # Set working directory
 WORKDIR /app
@@ -6,34 +6,23 @@ WORKDIR /app
 # Copy package files
 COPY package*.json ./
 
-# Install dependencies
-RUN npm ci
+# Install dependencies (production only)
+RUN npm ci --only=production
 
 # Copy source code
 COPY . .
 
-# Set environment variables
-ARG NEXT_PUBLIC_FIREBASE_API_KEY
-ARG NEXT_PUBLIC_FIREBASE_AUTH_DOMAIN
-ARG NEXT_PUBLIC_FIREBASE_PROJECT_ID
-ARG NEXT_PUBLIC_FIREBASE_STORAGE_BUCKET
-ARG NEXT_PUBLIC_FIREBASE_MESSAGING_SENDER_ID
-ARG NEXT_PUBLIC_FIREBASE_APP_ID
-ARG NEXT_PUBLIC_ENCRYPTION_KEY
-
-ENV NEXT_PUBLIC_FIREBASE_API_KEY=$NEXT_PUBLIC_FIREBASE_API_KEY
-ENV NEXT_PUBLIC_FIREBASE_AUTH_DOMAIN=$NEXT_PUBLIC_FIREBASE_AUTH_DOMAIN
-ENV NEXT_PUBLIC_FIREBASE_PROJECT_ID=$NEXT_PUBLIC_FIREBASE_PROJECT_ID
-ENV NEXT_PUBLIC_FIREBASE_STORAGE_BUCKET=$NEXT_PUBLIC_FIREBASE_STORAGE_BUCKET
-ENV NEXT_PUBLIC_FIREBASE_MESSAGING_SENDER_ID=$NEXT_PUBLIC_FIREBASE_MESSAGING_SENDER_ID
-ENV NEXT_PUBLIC_FIREBASE_APP_ID=$NEXT_PUBLIC_FIREBASE_APP_ID
-ENV NEXT_PUBLIC_ENCRYPTION_KEY=$NEXT_PUBLIC_ENCRYPTION_KEY
-
 # Build the application
 RUN npm run build
 
-# Expose port
-EXPOSE 3000
+# Create data directory for encrypted local storage
+RUN mkdir -p /app/data && chmod 755 /app/data
+
+# Expose port 7654 (Capsule default port)
+EXPOSE 7654
+
+# Set production environment
+ENV NODE_ENV=production
 
 # Start the application
 CMD ["npm", "start"]
\ No newline at end of file
diff --git a/README.md b/README.md
index fb87d7d..0871b77 100644
--- a/README.md
+++ b/README.md
@@ -286,6 +286,30 @@ Date,Amount,Description,Category
 - Export to JSON format for data backup or integration
 - Includes complete transaction history and envelope details
 
+## Deployment
+
+### ZimaOS Deployment (Recommended)
+
+Capsule is designed for self-hosted deployment on ZimaOS and similar platforms.
+
+**Quick Deploy:**
+```bash
+./deploy.sh
+```
+
+See [DEPLOYMENT.md](./DEPLOYMENT.md) for detailed ZimaOS deployment instructions.
+
+**Features:**
+- Docker containerization for easy deployment
+- Persistent data storage in `./data` directory
+- Health checks and auto-restart
+- Encrypted local storage (no cloud required)
+
+**Access:**
+- Default port: 7654
+- Local: `http://localhost:7654`
+- Network: `http://your-device-ip:7654`
+
 ## Contributing
 
 1. Fork the repository
diff --git a/deploy.sh b/deploy.sh
new file mode 100755
index 0000000..9077392
--- /dev/null
+++ b/deploy.sh
@@ -0,0 +1,60 @@
+#!/bin/bash
+
+# Capsule Budget - ZimaOS Deployment Script
+
+set -e
+
+echo "🚀 Deploying Capsule to ZimaOS..."
+echo ""
+
+# Check if .env file exists
+if [ ! -f .env ]; then
+    echo "⚠️  .env file not found!"
+    echo "Creating .env from .env.example..."
+    cp .env.example .env
+    
+    # Generate a secure encryption key
+    ENCRYPTION_KEY=$(openssl rand -base64 32)
+    
+    # Update .env with generated key
+    if [[ "$OSTYPE" == "darwin"* ]]; then
+        # macOS
+        sed -i '' "s/change-this-to-a-secure-random-key/$ENCRYPTION_KEY/" .env
+    else
+        # Linux
+        sed -i "s/change-this-to-a-secure-random-key/$ENCRYPTION_KEY/" .env
+    fi
+    
+    echo "✅ Generated secure encryption key"
+    echo ""
+fi
+
+# Clear test data
+echo "🧹 Clearing test data..."
+rm -rf data/*
+echo "✅ Test data cleared"
+echo ""
+
+# Build and start containers
+echo "🔨 Building Docker image..."
+docker-compose build
+
+echo ""
+echo "🚀 Starting Capsule..."
+docker-compose up -d
+
+echo ""
+echo "✅ Deployment complete!"
+echo ""
+echo "📊 Capsule is running at:"
+echo "   http://localhost:7654"
+echo "   http://$(hostname -I | awk '{print $1}'):7654"
+echo ""
+echo "🔧 Useful commands:"
+echo "   docker-compose logs -f       # View logs"
+echo "   docker-compose stop          # Stop container"
+echo "   docker-compose restart       # Restart container"
+echo "   docker-compose down          # Stop and remove container"
+echo ""
+echo "💾 Your data is stored in: ./data/"
+echo ""
diff --git a/docker-compose.yml b/docker-compose.yml
index 610609d..95fdaa1 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,15 +1,21 @@
 version: '3.8'
 
 services:
-  budget-app:
-    image: ghcr.io/nmemmert/budget:dbaff55
+  capsule:
+    build: .
+    container_name: capsule-budget
     ports:
-      - "3000:3000"
+      - "7654:7654"
+    volumes:
+      # Persist user data outside container
+      - ./data:/app/data
     environment:
       - NODE_ENV=production
+      # Generate a secure key: openssl rand -base64 32
+      - ENCRYPTION_KEY=${ENCRYPTION_KEY:-change-this-to-a-secure-key}
     restart: unless-stopped
     healthcheck:
-      test: ["CMD", "curl", "-f", "http://localhost:3000"]
+      test: ["CMD", "wget", "--quiet", "--tries=1", "--spider", "http://localhost:7654"]
       interval: 30s
       timeout: 10s
       retries: 3
diff --git a/package.json b/package.json
index da12870..aaf84e9 100644
--- a/package.json
+++ b/package.json
@@ -5,7 +5,7 @@
   "scripts": {
     "dev": "next dev -p 7654",
     "build": "next build",
-    "start": "next start",
+    "start": "next start -p 7654",
     "lint": "eslint"
   },
   "dependencies": {