Financial concepts on Pledger.io

Accounts in finance

Mon, 01 Jan 0001 00:00:00 +0000

Pledger.io supports keeping track of multiple accounts for a full overview of your finances. Accounts are one of the main concepts in Pledger.io to attach transactions to. An account can be a bank account, a credit card, a loan, a savings account, or any other financial account.

In a double bookkeeping system, accounts are divided into different categories. Each transaction is recorded in two accounts, one account is debited, and the other account is credited.

Transactions in finance

Mon, 01 Jan 0001 00:00:00 +0000

What is a transaction?

A transaction is a very simple thing. Money moves from one account into another. It does not matter if it is an expense, income or moving money around your own accounts.

A transaction in Pledger.io is stored as a single move of money with at least two accounts involved. So a deposit of your salary would look something similar to this:

Budgets in finance

Mon, 01 Jan 0001 00:00:00 +0000

A budget serves as a detailed plan for how you will allocate your financial resources over a specific period, typically monthly or annually. It outlines your expected income and expenses, and allows you to compare your actual financial performance against your budgeted performance.

Why is the income budgeted?

Your budget starts with an estimation or listing of all your sources of income. This includes salaries, wages, bonuses, freelance earnings, rental income, investment dividends, etc. Your total income serves as the foundation upon which you’ll base your spending and saving decisions.

Contracts in finance

Mon, 01 Jan 0001 00:00:00 +0000

In Pledger.io contracts are agreements between two or more parties to do something for each other.

What are contracts in finance?

Imagine you and your friend want to trade something valuable, like toys. You both want to make sure the trade is fair and everyone keeps their promises. So, you decide to write down what each of you will give and get in a piece of paper. That piece of paper is like a contract.

Recurring transactions in finance

Mon, 01 Jan 0001 00:00:00 +0000

Pledger.io allows you to create recurring transactions. These are transactions that are automatically created at regular intervals. For example, you can create a recurring transaction for your rent, which will be created every month.

Recurring transactions are useful for transactions that are repeated at regular intervals, such as rent, salaries, and utility bills. They help you to manage your finances by automating the creation of these transactions.

Recurring transactions can be created for any type of transaction, such as expenses, income, and transfers.