What are categories?

When we don't have good control of our finances, it is very common to wonder "Where is my money going?" or even, "Where does this money come from?".

Dividing your transactions by categories is a simple way to identify how your money has been spent and what is the source of your income. This is one of the first steps to having a better financial control because this is what allows you to know what areas of your life need more attention in your personal finances.

This is one of the best ways for you to get a better sense of what has most hindered or helped your savings.

What are the differences between the expense and income categories?

 Income 

Categorizing your income is what allows you to identify how much a month you earn from salary, commissions, gifts, and other sources of income that you may have and, thus, plan how you can increase your income.

 Expense 

This allows you to identify how much per month you spend on food, leisure, housing, studies, transportation, travel, and other categories and thus finding points where you can save money.

By creating your income and expense categories, it will be easier to achieve the goal of controlling your personal finances and identifying all your financial transactions.