Using a category is a simple way to classify your expenses or income to identify how your money has been spent or to know the source of your income.
Making this classification is one of the first steps to have good financial control, as it will allow you to know what are the areas in which you have most moved your finances. By associating a category with your income, this will allow you to identify how much a month you earn from salary, commissions, gifts, and other sources of income that you may have and thus plan how you can increase your income.
The same also applies to your expenses, because by associating an expense with a category, you will be able to identify how much per month you spend on food, leisure, housing, transportation and other expenses you have, and thus find ways to save.
Subcategories are a way to have even more control over what you spend and earn, as each main category can have several others within it, which are part of the same type, see the example of an expense:
In the "Supermarket" category, there is a subcategory "Cleaning", making it possible, at the end of the month, to know how much I spent in the supermarket with this subcategory.
Easy, isn't it? Now you know that you can have total control of your income and expenses through categories and subcategories. If you want to know how to create them, click here.