Tier Availability
Essential & PremiumWhat Are Recurring Transactions?
Recurring transactions automate the entry of regular, predictable transactions in your budget. Instead of manually entering the same transaction every week, month, or year, you set it up once and Purpose Budget creates the transactions automatically on schedule.
Think of recurring transactions as your budgeting assistant. Set them up for your paycheck, rent, subscriptions, and regular bills, and they'll be added automatically on schedule. Never forget to log a transaction again!
Benefits of Recurring Transactions
- Save time: Enter transaction details once, not dozens of times
- Improve accuracy: Consistent transaction details every time
- Better forecasting: See upcoming transactions before they happen
- Stay on top of bills: Never forget a regular payment
- Reduce mental load: One less thing to remember each month
Recurring Transactions vs. Category Targets
These features work together but serve different purposes:
| Feature | Purpose | Example |
|---|---|---|
| Recurring Transaction | Automatically creates transaction entries | Auto-create $15.99 Netflix charge on 1st of month |
| Category Target | Sets budgeting goals for categories | Budget $150/month for Subscriptions category |
Best practice: Use both together! Set a category target for how much to budget, and set up recurring transactions for known scheduled expenses.
Creating Your First Recurring Transaction
Let's walk through setting up a recurring transaction for a monthly subscription.
Example: Netflix Subscription
Scenario: Netflix charges $15.99/month on the 1st to your credit card
- 1. Navigate to Recurring: Click "Recurring" in the sidebar menu
- 2. Click "Add Recurring Transaction"
- 3. Fill in details:
- • Payee: Netflix
- • Amount: $15.99
- • Type: Expense
- • Account: Credit Card
- • Category: Subscriptions
- • Notes (optional): Monthly streaming subscription
- 4. Set recurrence pattern:
- • Frequency: Monthly
- • Start Date: Next 1st of the month
- • End: Never (unless you plan to cancel)
- 5. Save: Click "Create Recurring Transaction"
- 6. Verify: Check the "Next Date" shows the 1st of next month
Understanding Recurrence Patterns
Frequency Options
- Daily: Repeats every day (rarely used for most people)
- Weekly: Every 7 days - great for weekly expenses
- Bi-weekly (Every 2 weeks): Common for paychecks - results in 26 occurrences per year
- Monthly: Same date each month - most common for bills
- Yearly: Once per year - good for annual premiums and subscriptions
Bi-weekly Paycheck Tip: If you're paid every other Friday, you'll have 26 paychecks per year. Most months have 2 paychecks, but twice a year you'll have 3! Budget based on 2 paychecks and treat the 3rd as "bonus" money for savings or debt payoff.
End Conditions
- Never: Continues indefinitely - use for ongoing subscriptions and regular income
- After X Occurrences: Stops after a specific number - useful for fixed-term subscriptions
- By Date: Stops after a specific date - good for temporary services
What to Make Recurring
Great Candidates ✅
- Regular paychecks (weekly, bi-weekly, monthly)
- Rent or mortgage payments
- Subscriptions (Netflix, Spotify, gym memberships, SaaS tools)
- Fixed bills (phone, internet, insurance premiums)
- Recurring donations or giving
- Regular transfers to savings
Poor Candidates ❌
- Variable amount transactions (restaurants, groceries that vary widely)
- Irregular or unpredictable expenses
- One-time or rare payments
- Transactions where the amount changes significantly each time
What About Variable Utilities?
Option 1: Create recurring transaction with average amount, edit each month when actual bill comes (recommended if variance is moderate)
Option 2: Skip recurring and enter manually each month (recommended if amount varies wildly)
Either way, set a category target for the high end of the range so you're covered!
Common Scenarios
Scenario 1: Setting Up Your Paycheck
Situation: You get paid $2,500 every other Friday via direct deposit
- Payee: "Acme Corp - Salary"
- Amount: $2,500
- Type: Income
- Account: Checking Account
- Category: "Ready to Assign"
- Frequency: Bi-weekly (every 2 weeks)
- Start Date: Next pay date (next Friday if today is not payday)
- End: Never
Result: Every 2 weeks, $2,500 is automatically added to your checking account and shows up in "Ready to Assign" ready to allocate to categories!
Scenario 2: Annual Insurance Premium
Situation: Car insurance is $1,440 per year, charged on January 15th
- Payee: "State Farm - Auto Insurance"
- Amount: $1,440
- Type: Expense
- Account: Checking Account
- Category: Car Insurance
- Frequency: Yearly
- Start Date: January 15, 2026 (next occurrence)
- End: Never
- Notes: "Policy #12345"
Pro Tip: Combine with a Category Target! Set a "Needed by Date" target of $1,440 by January 15 on your Car Insurance category. This saves $120/month so you're ready when the charge occurs.
Managing Recurring Transactions
Editing Recurring Transactions
When you need to update a recurring transaction:
- Go to Recurring Transactions list
- Click the edit icon next to the transaction
- Update any fields that need changing (amount, account, date, frequency)
- Click "Update Recurring Transaction"
- Verify the "Next Date" reflects your changes
Important: Editing the recurring template doesn't change past transactions, only future ones.
Pausing and Resuming
Temporarily stop a recurring transaction without deleting it:
- When to pause: Temporarily cancelled subscription, seasonal service, testing if you still need it
- How to pause: Find the transaction and click the Pause button/toggle
- While paused: No new transactions are created, but the template remains for easy resumption
- To resume: Click Resume, update the "Next Date" if needed, and it continues on schedule
Deleting Recurring Transactions
⚠️ Warning: Deleting is permanent and removes the recurring template.
- When to delete: Subscription cancelled permanently, service no longer used, duplicate created by mistake
- What happens: The recurring template is deleted, no more automatic transactions will be created
- What doesn't happen: Existing transactions in your accounts are NOT deleted - they remain in history
Pro Tip: Consider pausing instead of deleting if you're uncertain!
Best Practices
Setup Strategy
- Start with income first: Set up your paycheck(s) - critical foundation for budgeting
- Add big fixed bills: Rent/mortgage, insurance, loan payments - highest impact
- Then add subscriptions: Streaming, gym, software - easy to forget small charges
- Use consistent naming: Always "Netflix" not varying between "Netflix Inc." and "Netflix Subscription"
- Add helpful notes: Include account numbers, policy numbers for reference
Maintenance
- Review monthly: Check that all recurring transactions created correctly
- Update amounts: When bills change, edit the recurring transaction
- Delete cancelled subscriptions: Keep your list clean and accurate
- Reconcile regularly: Compare auto-created transactions with actual bank charges
Ready to Automate Your Transactions?
Set up recurring transactions for your regular income and expenses, and let Purpose Budget handle the data entry. Combined with category targets, you can automate most of your budgeting process!