Record An Expense
Tracking your spending is simple when you record each transaction. There are many different ways you might part with your money, and each of them would classify as an expense in your budget. Here are some examples: Paying your rent. Buying groceries. Giving money to a friend. Whenever you record an expense, you must fill out these fields: Amount Category Merchant Date It is highly recommended that you fill out every field every time you log an expense, otherwise your transaction might be difficult to find later on.
Recording your income is important because it holds you accountable to budgeting it properly. Any time money flows into your life, you may want to record it as income.Some examples may include: A paycheck from your job. Money as a gift from friends and family. Interest from your bank accrued on your checking account. Refunds and Reimbursements Often we want to record an inflow of money that isn’t strictly income.
Record Refunds Or Reimbursements
Often we want to record an inflow of money that isn’t strictly income. Some examples might include: We buy lunch for a friend and they repay us. Our job reimburses us for expenses incurred during a work trip. We want to keep a category spend-neutral without funding it from our budget. The answer is simple: Record it as an expense transaction with a negative amount. Whereas income transactions will be available for budgeting and factored into your savings rate, expense transactions only come and go from the category they’re assigned to.