What does it mean by expense or credit?

Hi… still new here and new to budgetting. When i add a transaction to an envelope, theres a little drop list that says expense and credit. I dk what these mean :woman_shrugging:

I have Autism i need simplification please :slight_smile:

Welcome!

An Expense is money leaving your envelope, for example when you purchase something at a shop. A Credit is money coming back into the envelope, like when you return an item and receive a refund. It’s similar to income, but usually represents money that was spent from that envelope earlier.

There are other ways to enter a credit, but this is usually the simplest and most accurate.

Hope that helps!

Tiffany

Ah i understand now!

I have another question. What do i put ATM withdraws as? I often get cash out of local ATM machines.

@TaylorGriffith – Good question! It depends.

If you’re using the Free plan and using a single Goodbudget Account to track your overall income, then I’d recommend not logging your ATM withdrawal at all. Instead, you can record your spending when you actually purchase something with your cash.

On the other hand, if your single Account is meant to track your real-life checking account balance, then you should log your ATM withdrawal as an expense. Then, you won’t track your cash spending when it happens.

Hope that made sense!