Categories are defined between income types and expense types. It's a simple way to identify how your money has been spent and also to know the source of your incomes.
Categorizing your expenses and incomes is one of the first steps to have a proper financial control, because that's what will allow you to know the areas in which you have spent most of your money. So you can have a better sense of what else has gotten into your savings.
What are the differences between the categories of expenses and incomes?
Categorizing expenses. 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.
Categorizing the incomes. This allows you to identify how much per month you earn with salary, commissions, gifts and other sources of income that you may have and thus plan how you can raise your incomes.
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