The 4 types of transactions

All transactions are colour-coded based on their contribution to the Wealth Equation.

Your transactions are divided into 4 categories:

• Inflows: sum of the money you receive
• Recurring Expenses: sum of all your fixed costs (rent, utilities...)
• Variable Expenses: sum of all your variable costs (anything not fixed)
• Wealth: money you gain. It can sit in your current account, savings account, investment account or be used to repay debt.

You can change the type of any spending from Bills to Variable in the transaction details:

Nova automatically changes the type to Wealth when you recategorise a transaction as Investment:

Excluded transactions

Two types transactions are excluded from the Wealth Equation:

1. Internal transfers

Internal transfers represent transactions you make across 2 accounts connected to Nova. They're excluded because these transactions represent a zero-sum game and don't contribute to your Wealth Equation. For example:

• Moving money from current to savings account/pots or vice versa
• Paying your credit card balance