Recap

Envelope Budgeting in Dexter

• Envelopes are expense accounts, not assets.

• When a budget transaction fills envelopes it credits expense accounts and debits income accounts.

• A transaction that debits an expense account automatically uses funds from that envelope; no additional transactions are required.

• The balance of an expense account represents the amount of money in the envelope.

• Budget transactions lead to a new meaning for the balances of expense and income accounts, but it's easy to filter out these transactions to recover the traditional meanings.