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

Home Utilities
Bills for household utilities like Electricity, Telephone, Mobile, Water, Maintenance bills etc
Any Grocery items like vegetables, household items, etc
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
Any nature of shopping of goods and services both Online(e-com) or Offline
Cash Withdrawal
Cash withdrawn from your Bank ATMs
Petrol/Diesel spends, Metro/Railways, Local transport/ Bus pass etc or any long distance Tours, Air, Rail, etc can be clubbed here
School fee, Tuition Fees, Books etc
Subscriptions to DTH (like Tatasky, DishTV), Cable Connections, OTT (Netflix, Prime), Movies(PVR, Google Play), Fantasy Sports, Gambling, Clubbing etc
Hospital, Medical stores, Childcare, Mediclaim, Routine checkups, Gym,Spa etc
Monthly or Annual Health plans, Travel Insurances or any term policy expenses
Rent Payments to your landlord
Income Tax, Property Tax etc
Transaction Charges
EMI Bounce Charges, Stock Broking Commissions, Account Charges, Demat Charges, AMC Cost etc
Other Debits
Debits which are not categorised into any of the above will remain in Others category

Obligations are categorised into 2 labels

Emi payments
Loan Emi payments made by you on Loans taken by you
Credit Card Payments
Credit card bill payments are categorised here

Investments categorised into 6 labels

Fixed Deposit
Money invested into creation of Fixed deposits
Mutual Funds
Money invested into Mutual funds are categorised here.
Money invested in stock market by way of Purchase of Shares, Bonds or any other traded instruments
EPFO Investments, Pension Fund Investments, etc
Fixed Asset
Money invested in purchase of Home, gold, land or any other type of fixed asset.
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

Security Deposit
Rental Deposit, Safe Deposit, others
Wallet Transfer
Money Credited to Wallets

Credit Transactions and its Labels

Income is categories into 6 type of Labels

Salary Received from Employment (full-time/part-time/contract)
Business Income
Income from Business, other earnings like Commissions, Brokerage fees etc
Rental Income
Income earned from House put on Rent
Dividend Received
Dividend received from Stock, MF investments
Interest Income
Interest earned on FD & Debt Investments
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

FD Redeem
Money received on FD Maturity or Pre-mature redemption
Stock Sale
Money Received from Stock sale
MF Redeem
Money Received from MF redemption
Insurance Redeem
Money Received from Insurance plans
PF Withdrawn
Money Received from PF/Pension withdrawals
Fixed Asset Sale
Money Received from Sale of Fixed asset like House, Gold etc

Loans & Credit are categories into 5 type of Labels

Loans taken
Loan taken from outside
Deposit Received
Money received as security deposit from others
Money from Friend
Money taken from Friends
Money from Family
Money taken from Family
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

Deposit Returned
Deposit money Returned to you like Security money refunds etc
Refunds on Order cancellations & Others on purchases done
Cashbacks received from any offers etc are categorised here

You may like to go through the following infographic as well : Click Here

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