Income or negative expense?

Just because we receive money doesn’t mean we should think of it as income.  Sometimes, we’re better off picturing it as a reduction to our expenses.  Here’s an example:

 

I pay $50 for myself + 2 friends at lunch, and each friend then pays me $15.  This means that at this point Walbux shows three transactions:

  • $50
  • +$15
  • +$15

I assign the $50 transaction to an expense category (ex. “Food Out”), and I assign the two $15 transactions to the same category, so my budget now shows I’ve spent $20 on lunch this month.