Balance App : Debits and Credit Index
This article discusses on ways to simplify your financial transactions based on the nature of Debits and Credits. We all Receive(Credit) or Give (Debit) our money through Bank accounts. You will learn how the Balance app categorises into various labels under each category and what nature of transactions are categorised under each label.
All Debits & Credits into your Bank Account are categories 4 categories each.
We have categorised all Debits into 4 major categories:
| 1 | Expenses |
| Any type of daily, monthly, one-time expenses like Shopping, Grocery, Utility bills, etc are clubbed into this category. We have 14 sub-categories (also called labels) based on the nature of such expense. | |
| 2 | Obligations Repaid |
| Loan EMI payments, Credit card bill payments or any financial obligations that is paid back by you. Note, instalment debits which is often called as EMI comprise of both the Loan Principal and Interest expense. Since, app cannot recognise the interest part in your EMI hence it is tagged under Obligations repaid. You may reduce the interest part in your EMI and add it under Expense manually. | |
| 3 | Investments |
| Your Investments into Stocks, Mutual Funds, Deposits, Pension plans are clubbed here. These are both short terms and long term investments and savings. | |
| 4 | Deposits/Wallet Transfers |
| If any deposit is in nature of Security Deposits (like for rent, stock trades, minimum balance etc), or any transfers you may to your Wallet accounts, the same is categorised here. | |
We have categorised all Credits into 4 Major Categories:
| 1 | Income |
| Salary, Business Income, Rental Income, Interest Income, Dividends or any other form of Income earned by you is categorised here. | |
| 2 | Sale & Redemptions |
| When you sell your investments and funds received from same are categorised here. This can be your sell of stocks, MF, Insurance or House/property etc. Or it can be redemptions on your retirals like PF etc. | |
| 3 | Loans & Advance Received |
| Any loans taken, or money received from friend, family or others is categorised here | |
| 4 | Return & Refunds |
| When your security deposit is returned back or you get refund from someone the same is categorised here | |
Users wonder which part of the money that we receive is an income and which all are our expenses and investments. We have tried to simplify same for our users, however each one may have their own interpretation and we respect the same.
Each of the 8 categories are further divided into unique labels which are to tag each of your transaction based on the nature of debit and credits.
Debit Transactions and its Labels
Expenses are categorised into 14 type of Labels
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Home Utilities |
| Bills for household utilities like Electricity, Telephone, Mobile, Water, Maintenance bills etc | |
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Grocery |
| Any Grocery items like vegetables, household items, etc | |
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Food & Dining |
| Food & dining, Eateries, Bakery, Cafe, Restaurants etc. Some of the expenses can be overlapping with Grocery and can be interchangeably used as you prefer | |
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Shopping |
| Any nature of shopping of goods and services both Online(e-com) or Offline | |
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Cash Withdrawal |
| Cash withdrawn from your Bank ATMs | |
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Travel |
| Petrol/Diesel spends, Metro/Railways, Local transport/ Bus pass etc or any long distance Tours, Air, Rail, etc can be clubbed here | |
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Education |
| School fee, Tuition Fees, Books etc | |
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Entertainment |
| Subscriptions to DTH (like Tatasky, DishTV), Cable Connections, OTT (Netflix, Prime), Movies(PVR, Google Play), Fantasy Sports, Gambling, Clubbing etc | |
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Healthcare |
| Hospital, Medical stores, Childcare, Mediclaim, Routine checkups, Gym,Spa etc | |
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Insurance |
| Monthly or Annual Health plans, Travel Insurances or any term policy expenses | |
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Rentals |
| Rent Payments to your landlord | |
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Taxes |
| Income Tax, Property Tax etc | |
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Transaction Charges |
| EMI Bounce Charges, Stock Broking Commissions, Account Charges, Demat Charges, AMC Cost etc | |
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Other Debits |
| Debits which are not categorised into any of the above will remain in Others category | |
Obligations are categorised into 2 labels
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Emi payments |
| Loan Emi payments made by you on Loans taken by you | |
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Credit Card Payments |
| Credit card bill payments are categorised here | |
Investments categorised into 6 labels
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Fixed Deposit |
| Money invested into creation of Fixed deposits | |
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Mutual Funds |
| Money invested into Mutual funds are categorised here. | |
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Stocks |
| Money invested in stock market by way of Purchase of Shares, Bonds or any other traded instruments | |
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Retiral |
| EPFO Investments, Pension Fund Investments, etc | |
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Fixed Asset |
| Money invested in purchase of Home, gold, land or any other type of fixed asset. | |
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Other Investments |
| Money invested to any other form of assets which are not categorised above. For eg: Bitcoins, Art, Valuables etc | |
Deposits & Wallets are categorised into 2 labels
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Security Deposit |
| Rental Deposit, Safe Deposit, others | |
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Wallet Transfer |
| Money Credited to Wallets | |
Credit Transactions and its Labels
Income is categories into 6 type of Labels
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Salary |
| Salary Received from Employment (full-time/part-time/contract) | |
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Business Income |
| Income from Business, other earnings like Commissions, Brokerage fees etc | |
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Rental Income |
| Income earned from House put on Rent | |
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Dividend Received |
| Dividend received from Stock, MF investments | |
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Interest Income |
| Interest earned on FD & Debt Investments | |
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Other Income |
| Any other type of income which cannot be categorised in the rest of the types of Income | |
Sale & Redemptions are categories into 6 type of Labels
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FD Redeem |
| Money received on FD Maturity or Pre-mature redemption | |
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Stock Sale |
| Money Received from Stock sale | |
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MF Redeem |
| Money Received from MF redemption | |
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Insurance Redeem |
| Money Received from Insurance plans | |
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PF Withdrawn |
| Money Received from PF/Pension withdrawals | |
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Fixed Asset Sale |
| Money Received from Sale of Fixed asset like House, Gold etc | |
Loans & Credit are categories into 5 type of Labels
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Loans taken |
| Loan taken from outside | |
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Deposit Received |
| Money received as security deposit from others | |
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Money from Friend |
| Money taken from Friends | |
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Money from Family |
| Money taken from Family | |
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Other Credits |
| Credits which are not categorised into any of the above will remain in Others category | |
Return & Refunds are categories into 3 type of Labels
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Deposit Returned |
| Deposit money Returned to you like Security money refunds etc | |
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Refunds |
| Refunds on Order cancellations & Others on purchases done | |
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Cashbacks |
| Cashbacks received from any offers etc are categorised here | |
You may like to go through the following infographic as well : Click Here
For any comments or suggestions write to us at: help@merabalance.com