diff --git a/app/controllers/account/transactions_controller.rb b/app/controllers/account/transactions_controller.rb
index 6784aac6..98c1a140 100644
--- a/app/controllers/account/transactions_controller.rb
+++ b/app/controllers/account/transactions_controller.rb
@@ -22,10 +22,9 @@ class Account::TransactionsController < ApplicationController
   end
 
   def mark_transfers
-    Current.family
-      .entries
-      .where(id: bulk_update_params[:entry_ids])
-           .mark_transfers!
+    selected_entries = Current.family.entries.account_transactions.where(id: bulk_update_params[:entry_ids])
+
+    TransferMatcher.new(Current.family).match!(selected_entries)
 
     redirect_back_or_to transactions_url, notice: t(".success")
   end
@@ -33,8 +32,12 @@ class Account::TransactionsController < ApplicationController
   def unmark_transfers
     Current.family
       .entries
+      .account_transactions
+      .includes(:entryable)
       .where(id: bulk_update_params[:entry_ids])
-           .update_all marked_as_transfer: false
+      .each do |entry|
+        entry.entryable.update!(category_id: nil)
+      end
 
     redirect_back_or_to transactions_url, notice: t(".success")
   end
diff --git a/app/helpers/account/entries_helper.rb b/app/helpers/account/entries_helper.rb
index 359a241a..c2c79bc9 100644
--- a/app/helpers/account/entries_helper.rb
+++ b/app/helpers/account/entries_helper.rb
@@ -4,7 +4,7 @@ module Account::EntriesHelper
   end
 
   def unconfirmed_transfer?(entry)
-    entry.marked_as_transfer? && entry.transfer.nil?
+    entry.transfer.nil? && entry.entryable.category&.classification == "transfer"
   end
 
   def transfer_entries(entries)
diff --git a/app/models/account/entry.rb b/app/models/account/entry.rb
index 8d6a8f40..e4ba1fc6 100644
--- a/app/models/account/entry.rb
+++ b/app/models/account/entry.rb
@@ -30,7 +30,20 @@ class Account::Entry < ApplicationRecord
     )
   }
 
-  scope :without_transfers, -> { where(marked_as_transfer: false) }
+  scope :incomes_and_expenses, -> {
+    joins("INNER JOIN account_transactions ON account_transactions.id = account_entries.entryable_id")
+      .joins(:account)
+      .joins("LEFT JOIN categories ON categories.id = account_transactions.category_id")
+      # All transfers excluded from income/expenses, outflow payments are expenses, inflow payments are NOT income
+      .where(<<~SQL.squish)
+        categories.id IS NULL OR
+        (
+          categories.classification != 'transfer' AND
+          (categories.classification != 'payment' OR account_entries.amount > 0)
+        )
+      SQL
+  }
+
   scope :with_converted_amount, ->(currency) {
     # Join with exchange rates to convert the amount to the given currency
     # If no rate is available, exclude the transaction from the results
@@ -98,13 +111,6 @@ class Account::Entry < ApplicationRecord
       select("*").from(rolling_totals).where("date >= ?", period.date_range.first)
     end
 
-    def mark_transfers!
-      update_all marked_as_transfer: true
-
-      # Attempt to "auto match" and save a transfer if 2 transactions selected
-      Account::Transfer.new(entries: all).save if all.count == 2
-    end
-
     def bulk_update!(bulk_update_params)
       bulk_attributes = {
         date: bulk_update_params[:date],
@@ -128,8 +134,7 @@ class Account::Entry < ApplicationRecord
     end
 
     def income_total(currency = "USD")
-      total = without_transfers.account_transactions.includes(:entryable)
-        .where("account_entries.amount <= 0")
+      total = incomes_and_expenses.where("account_entries.amount <= 0")
                        .map { |e| e.amount_money.exchange_to(currency, date: e.date, fallback_rate: 0) }
                        .sum
 
@@ -137,8 +142,7 @@ class Account::Entry < ApplicationRecord
     end
 
     def expense_total(currency = "USD")
-      total = without_transfers.account_transactions.includes(:entryable)
-                       .where("account_entries.amount > 0")
+      total = incomes_and_expenses.where("account_entries.amount > 0")
                        .map { |e| e.amount_money.exchange_to(currency, date: e.date, fallback_rate: 0) }
                        .sum
 
diff --git a/app/models/account/entry_search.rb b/app/models/account/entry_search.rb
index c561765b..1c82fe52 100644
--- a/app/models/account/entry_search.rb
+++ b/app/models/account/entry_search.rb
@@ -27,8 +27,6 @@ class Account::EntrySearch
     query = query.where("account_entries.date <= ?", end_date) if end_date.present?
 
     if types.present?
-      query = query.where(marked_as_transfer: false) unless types.include?("transfer")
-
       if types.include?("income") && !types.include?("expense")
         query = query.where("account_entries.amount < 0")
       elsif types.include?("expense") && !types.include?("income")
diff --git a/app/models/account/trade_builder.rb b/app/models/account/trade_builder.rb
index e62947f7..5f256d54 100644
--- a/app/models/account/trade_builder.rb
+++ b/app/models/account/trade_builder.rb
@@ -67,8 +67,9 @@ class Account::TradeBuilder
           date: date,
           amount: signed_amount,
           currency: currency,
-          marked_as_transfer: true,
-          entryable: Account::Transaction.new
+          entryable: Account::Transaction.new(
+            category: account.family.default_transfer_category
+          )
         )
       end
     end
diff --git a/app/models/account/transfer.rb b/app/models/account/transfer.rb
index ea908413..5272fa43 100644
--- a/app/models/account/transfer.rb
+++ b/app/models/account/transfer.rb
@@ -59,8 +59,9 @@ class Account::Transfer < ApplicationRecord
         currency: from_account.currency,
         date: date,
         name: "Transfer to #{to_account.name}",
-        marked_as_transfer: true,
-        entryable: Account::Transaction.new
+        entryable: Account::Transaction.new(
+          category: from_account.family.default_transfer_category
+        )
 
       # Attempt to convert the amount to the to_account's currency. If the conversion fails,
       # use the original amount.
@@ -75,8 +76,9 @@ class Account::Transfer < ApplicationRecord
         currency: converted_amount.currency.iso_code,
         date: date,
         name: "Transfer from #{from_account.name}",
-        marked_as_transfer: true,
-        entryable: Account::Transaction.new
+        entryable: Account::Transaction.new(
+          category: to_account.family.default_transfer_category
+        )
 
       new entries: [ outflow, inflow ]
     end
@@ -106,8 +108,8 @@ class Account::Transfer < ApplicationRecord
     end
 
     def all_transactions_marked
-      unless entries.all?(&:marked_as_transfer)
-        errors.add :entries, :must_be_marked_as_transfer
+      unless entries.all? { |e| e.entryable.category == from_account.family.default_transfer_category }
+        errors.add :entries, :must_have_transfer_category
       end
     end
 end
diff --git a/app/models/budget.rb b/app/models/budget.rb
new file mode 100644
index 00000000..4f98ee61
--- /dev/null
+++ b/app/models/budget.rb
@@ -0,0 +1,4 @@
+class Budget < ApplicationRecord
+  belongs_to :family
+  has_many :budget_categories, dependent: :destroy
+end
diff --git a/app/models/budget_category.rb b/app/models/budget_category.rb
new file mode 100644
index 00000000..1893254f
--- /dev/null
+++ b/app/models/budget_category.rb
@@ -0,0 +1,4 @@
+class BudgetCategory < ApplicationRecord
+  belongs_to :budget
+  belongs_to :category
+end
diff --git a/app/models/category.rb b/app/models/category.rb
index 6f50070b..7b20c30f 100644
--- a/app/models/category.rb
+++ b/app/models/category.rb
@@ -4,9 +4,12 @@ class Category < ApplicationRecord
 
   belongs_to :family
 
+  has_many :budget_categories, dependent: :destroy
   has_many :subcategories, class_name: "Category", foreign_key: :parent_id
   belongs_to :parent, class_name: "Category", optional: true
 
+  enum :classification, { expense: "expense", income: "income", transfer: "transfer", payment: "payment" }
+
   validates :name, :color, :family, presence: true
   validates :name, uniqueness: { scope: :family_id }
 
diff --git a/app/models/demo/generator.rb b/app/models/demo/generator.rb
index 8041dea6..79f56b77 100644
--- a/app/models/demo/generator.rb
+++ b/app/models/demo/generator.rb
@@ -88,7 +88,7 @@ class Demo::Generator
                     "Rent & Utilities", "Home Improvement", "Shopping" ]
 
       categories.each do |category|
-        family.categories.create!(name: category, color: COLORS.sample)
+        family.categories.create!(name: category, color: COLORS.sample, classification: category == "Income" ? "income" : "expense")
       end
 
       food = family.categories.find_by(name: "Food & Drink")
diff --git a/app/models/family.rb b/app/models/family.rb
index 69ac5eb7..e01f6a45 100644
--- a/app/models/family.rb
+++ b/app/models/family.rb
@@ -21,6 +21,18 @@ class Family < ApplicationRecord
   validates :locale, inclusion: { in: I18n.available_locales.map(&:to_s) }
   validates :date_format, inclusion: { in: DATE_FORMATS }
 
+  def default_transfer_category
+    @default_transfer_category ||= categories.find_or_create_by!(classification: "transfer") do |c|
+      c.name = "Transfer"
+    end
+  end
+
+  def default_payment_category
+    @default_payment_category ||= categories.find_or_create_by!(classification: "payment") do |c|
+      c.name = "Payment"
+    end
+  end
+
   def sync_data(start_date: nil)
     update!(last_synced_at: Time.current)
 
@@ -82,7 +94,10 @@ class Family < ApplicationRecord
 
   def snapshot_account_transactions
     period = Period.last_30_days
-    results = accounts.active.joins(:entries)
+    results = accounts.active
+                      .joins("INNER JOIN account_entries ON account_entries.account_id = accounts.id")
+                      .joins("INNER JOIN account_transactions ON account_entries.entryable_id = account_transactions.id AND account_entries.entryable_type = 'Account::Transaction'")
+                      .joins("LEFT JOIN categories ON account_transactions.category_id = categories.id")
                       .select(
                         "accounts.*",
                         "COALESCE(SUM(account_entries.amount) FILTER (WHERE account_entries.amount > 0), 0) AS spending",
@@ -90,8 +105,7 @@ class Family < ApplicationRecord
                       )
                       .where("account_entries.date >= ?", period.date_range.begin)
                       .where("account_entries.date <= ?", period.date_range.end)
-                      .where("account_entries.marked_as_transfer = ?", false)
-                      .where("account_entries.entryable_type = ?", "Account::Transaction")
+                      .where("categories.classification IS NULL OR categories.classification != ?", "transfer")
                       .group("accounts.id")
                       .having("SUM(ABS(account_entries.amount)) > 0")
                       .to_a
@@ -110,9 +124,7 @@ class Family < ApplicationRecord
   end
 
   def snapshot_transactions
-    candidate_entries = entries.account_transactions.without_transfers.excluding(
-      entries.joins(:account).where(amount: ..0, accounts: { classification: Account.classifications[:liability] })
-    )
+    candidate_entries = entries.incomes_and_expenses
     rolling_totals = Account::Entry.daily_rolling_totals(candidate_entries, self.currency, period: Period.last_30_days)
 
     spending = []
diff --git a/app/models/goal.rb b/app/models/goal.rb
new file mode 100644
index 00000000..d0117031
--- /dev/null
+++ b/app/models/goal.rb
@@ -0,0 +1,5 @@
+class Goal < ApplicationRecord
+  belongs_to :family
+
+  enum :type, { saving: "saving" }
+end
diff --git a/app/models/plaid_account.rb b/app/models/plaid_account.rb
index 5772f821..2bdfb6af 100644
--- a/app/models/plaid_account.rb
+++ b/app/models/plaid_account.rb
@@ -89,7 +89,6 @@ class PlaidAccount < ApplicationRecord
         t.amount = plaid_txn.amount
         t.currency = plaid_txn.iso_currency_code
         t.date = plaid_txn.date
-        t.marked_as_transfer = transfer?(plaid_txn)
         t.entryable = Account::Transaction.new(
           category: get_category(plaid_txn.personal_finance_category.primary),
           merchant: get_merchant(plaid_txn.merchant_name)
@@ -136,9 +135,9 @@ class PlaidAccount < ApplicationRecord
 
     # See https://plaid.com/documents/transactions-personal-finance-category-taxonomy.csv
     def get_category(plaid_category)
-      ignored_categories = [ "BANK_FEES", "TRANSFER_IN", "TRANSFER_OUT", "LOAN_PAYMENTS", "OTHER" ]
-
-      return nil if ignored_categories.include?(plaid_category)
+      return family.default_transfer_category if [ "TRANSFER_IN", "TRANSFER_OUT" ].include?(plaid_category)
+      return family.default_payment_category if [ "LOAN_PAYMENTS" ].include?(plaid_category)
+      return nil if [ "BANK_FEES", "OTHER" ].include?(plaid_category)
 
       family.categories.find_or_create_by!(name: plaid_category.titleize)
     end
diff --git a/app/models/plaid_investment_sync.rb b/app/models/plaid_investment_sync.rb
index fd207116..4d06aaea 100644
--- a/app/models/plaid_investment_sync.rb
+++ b/app/models/plaid_investment_sync.rb
@@ -26,13 +26,13 @@ class PlaidInvestmentSync
         next if security.nil? && plaid_security.nil?
 
         if transaction.type == "cash" || plaid_security.ticker_symbol == "CUR:USD"
+          category = plaid_account.account.family.default_transfer_category if transaction.subtype.in?(%w[deposit withdrawal])
           new_transaction = plaid_account.account.entries.find_or_create_by!(plaid_id: transaction.investment_transaction_id) do |t|
             t.name = transaction.name
             t.amount = transaction.amount
             t.currency = transaction.iso_currency_code
             t.date = transaction.date
-            t.marked_as_transfer = transaction.subtype.in?(%w[deposit withdrawal])
-            t.entryable = Account::Transaction.new
+            t.entryable = Account::Transaction.new(category: category)
           end
         else
           new_transaction = plaid_account.account.entries.find_or_create_by!(plaid_id: transaction.investment_transaction_id) do |t|
diff --git a/app/models/saving_goal.rb b/app/models/saving_goal.rb
new file mode 100644
index 00000000..0d041e15
--- /dev/null
+++ b/app/models/saving_goal.rb
@@ -0,0 +1,2 @@
+class SavingGoal < Goal
+end
diff --git a/app/models/transfer_matcher.rb b/app/models/transfer_matcher.rb
new file mode 100644
index 00000000..158b1555
--- /dev/null
+++ b/app/models/transfer_matcher.rb
@@ -0,0 +1,36 @@
+class TransferMatcher
+  attr_reader :family
+
+  def initialize(family)
+    @family = family
+  end
+
+  def match!(transaction_entries)
+    ActiveRecord::Base.transaction do
+      transaction_entries.each do |entry|
+        entry.entryable.update!(category_id: transfer_category.id)
+      end
+
+      create_transfers(transaction_entries)
+    end
+  end
+
+  private
+    def create_transfers(entries)
+      matches = entries.to_a.combination(2).select do |entry1, entry2|
+        entry1.amount == -entry2.amount &&
+        entry1.account_id != entry2.account_id &&
+        (entry1.date - entry2.date).abs <= 4
+      end
+
+      matches.each do |match|
+        Account::Transfer.create!(entries: match)
+      end
+    end
+
+    def transfer_category
+      @transfer_category ||= family.categories.find_or_create_by!(classification: "transfer") do |category|
+        category.name = "Transfer"
+      end
+    end
+end
diff --git a/app/views/account/transactions/_header.html.erb b/app/views/account/transactions/_header.html.erb
index af819326..a18dba98 100644
--- a/app/views/account/transactions/_header.html.erb
+++ b/app/views/account/transactions/_header.html.erb
@@ -12,7 +12,7 @@
       </span>
     </h3>
 
-    <% if entry.marked_as_transfer? %>
+    <% if entry.entryable.category&.transfer? %>
       <%= lucide_icon "arrow-left-right", class: "text-gray-500 mt-1 w-5 h-5" %>
     <% end %>
   </div>
diff --git a/app/views/account/transactions/show.html.erb b/app/views/account/transactions/show.html.erb
index b512b43a..d3060594 100644
--- a/app/views/account/transactions/show.html.erb
+++ b/app/views/account/transactions/show.html.erb
@@ -19,7 +19,7 @@
                 max: Date.current,
                 "data-auto-submit-form-target": "auto" %>
 
-          <% unless @entry.marked_as_transfer? %>
+          <% unless @entry.entryable.category&.transfer? %>
             <div class="flex items-center gap-2">
               <%= f.select :nature,
                     [["Expense", "outflow"], ["Income", "inflow"]],
@@ -52,7 +52,7 @@
               url: account_transaction_path(@entry),
               class: "space-y-2",
               data: { controller: "auto-submit-form" } do |f| %>
-          <% unless @entry.marked_as_transfer? %>
+          <% unless @entry.entryable.category&.transfer? %>
             <%= f.fields_for :entryable do |ef| %>
               <%= ef.collection_select :category_id,
                       Current.family.categories.alphabetically,
diff --git a/app/views/application/_pagination.html.erb b/app/views/application/_pagination.html.erb
index f4548512..13da2cd9 100644
--- a/app/views/application/_pagination.html.erb
+++ b/app/views/application/_pagination.html.erb
@@ -3,7 +3,7 @@
   <div class="flex items-center gap-1">
     <div>
       <% if pagy.prev %>
-        <%= link_to custom_pagy_url_for(pagy, pagy.prev, current_path: current_path), 
+        <%= link_to custom_pagy_url_for(pagy, pagy.prev, current_path: current_path),
               class: "inline-flex items-center p-2 text-sm font-medium text-gray-500 hover:border-gray-300 hover:text-gray-700",
               data: (current_path ? { turbo_frame: "_top" } : {}) do %>
           <%= lucide_icon("chevron-left", class: "w-5 h-5 text-gray-500") %>
@@ -17,13 +17,13 @@
     <div class="rounded-xl p-1 bg-gray-25">
       <% pagy.series.each do |series_item| %>
         <% if series_item.is_a?(Integer) %>
-          <%= link_to custom_pagy_url_for(pagy, series_item, current_path: current_path), 
+          <%= link_to custom_pagy_url_for(pagy, series_item, current_path: current_path),
                 class: "rounded-md px-2 py-1 inline-flex items-center text-sm font-medium text-gray-500 hover:border-gray-300 hover:text-gray-700",
                 data: (current_path ? { turbo_frame: "_top" } : {}) do %>
             <%= series_item %>
           <% end %>
         <% elsif series_item.is_a?(String) %>
-          <%= link_to custom_pagy_url_for(pagy, series_item, current_path: current_path), 
+          <%= link_to custom_pagy_url_for(pagy, series_item, current_path: current_path),
                 class: "rounded-md px-2 py-1 bg-white border border-alpha-black-25 shadow-xs inline-flex items-center text-sm font-medium text-gray-900",
                 data: (current_path ? { turbo_frame: "_top" } : {}) do %>
             <%= series_item %>
@@ -35,7 +35,7 @@
     </div>
     <div>
       <% if pagy.next %>
-        <%= link_to custom_pagy_url_for(pagy, pagy.next, current_path: current_path), 
+        <%= link_to custom_pagy_url_for(pagy, pagy.next, current_path: current_path),
               class: "inline-flex items-center p-2 text-sm font-medium text-gray-500 hover:border-gray-300 hover:text-gray-700",
               data: (current_path ? { turbo_frame: "_top" } : {}) do %>
           <%= lucide_icon("chevron-right", class: "w-5 h-5 text-gray-500") %>
diff --git a/app/views/categories/_form.html.erb b/app/views/categories/_form.html.erb
index 2bca2191..f217e45e 100644
--- a/app/views/categories/_form.html.erb
+++ b/app/views/categories/_form.html.erb
@@ -22,6 +22,7 @@
 
       <div class="space-y-2">
         <%= f.text_field :name, placeholder: t(".placeholder"), required: true, autofocus: true, label: "Name", data: { color_avatar_target: "name" } %>
+        <%= f.select :classification, Category.classifications.keys.map { |c| [c.humanize, c] }, required: true, label: true %>
         <%= f.select :parent_id, categories.pluck(:name, :id), { include_blank: "(unassigned)", label: "Parent category (optional)" } %>
       </div>
     </section>
diff --git a/app/views/layouts/application.html.erb b/app/views/layouts/application.html.erb
index 8c8f1d15..ca2da86d 100644
--- a/app/views/layouts/application.html.erb
+++ b/app/views/layouts/application.html.erb
@@ -13,7 +13,6 @@
     <%= combobox_style_tag %>
 
     <%= javascript_importmap_tags %>
-    <%= hotwire_livereload_tags if Rails.env.development? %>
     <%= turbo_refreshes_with method: :morph, scroll: :preserve %>
 
     <meta name="viewport"
diff --git a/app/views/pages/early_access.html.erb b/app/views/pages/early_access.html.erb
index 6ec820e1..cd86b0c3 100644
--- a/app/views/pages/early_access.html.erb
+++ b/app/views/pages/early_access.html.erb
@@ -10,7 +10,6 @@
     <%= stylesheet_link_tag "application", "data-turbo-track": "reload" %>
 
     <%= javascript_importmap_tags %>
-    <%= hotwire_livereload_tags if Rails.env.development? %>
     <%= turbo_refreshes_with method: :morph, scroll: :preserve %>
 
     <meta name="viewport" content="viewport-fit=cover, width=device-width, initial-scale=1.0, minimum-scale=1.0, maximum-scale=1.0, user-scalable=no">
diff --git a/app/views/transactions/searches/filters/_type_filter.html.erb b/app/views/transactions/searches/filters/_type_filter.html.erb
index 5effc7e9..dafb939d 100644
--- a/app/views/transactions/searches/filters/_type_filter.html.erb
+++ b/app/views/transactions/searches/filters/_type_filter.html.erb
@@ -23,15 +23,4 @@
                            nil %>
     <%= form.label :types, t(".expense"), value: "expense", class: "text-sm text-gray-900" %>
   </div>
-  <div class="flex items-center gap-3" data-filter-name="transfer">
-    <%= form.check_box :types,
-                           {
-                             multiple: true,
-                             checked: @q[:types]&.include?("transfer"),
-                             class: "maybe-checkbox maybe-checkbox--light"
-                           },
-                           "transfer",
-                           nil %>
-    <%= form.label :types, t(".transfer"), value: "transfer", class: "text-sm text-gray-900" %>
-  </div>
 </div>
diff --git a/config/locales/models/account/transfer/en.yml b/config/locales/models/account/transfer/en.yml
index c0fe38d5..a6888595 100644
--- a/config/locales/models/account/transfer/en.yml
+++ b/config/locales/models/account/transfer/en.yml
@@ -11,7 +11,8 @@ en:
           attributes:
             entries:
               must_be_from_different_accounts: must be from different accounts
-              must_be_marked_as_transfer: must be marked as transfer
+              must_have_transfer_category: must have transfer category
               must_have_an_inflow_and_outflow_that_net_to_zero: must have an inflow
                 and outflow that net to zero
               must_have_exactly_2_entries: must have exactly 2 entries
+
diff --git a/config/locales/views/transactions/en.yml b/config/locales/views/transactions/en.yml
index 5e6ab631..e4535ec3 100644
--- a/config/locales/views/transactions/en.yml
+++ b/config/locales/views/transactions/en.yml
@@ -26,7 +26,6 @@ en:
         type_filter:
           expense: Expense
           income: Income
-          transfer: Transfer
       menu:
         account_filter: Account
         amount_filter: Amount
diff --git a/db/migrate/20241230154019_create_budgets.rb b/db/migrate/20241230154019_create_budgets.rb
new file mode 100644
index 00000000..8edbe815
--- /dev/null
+++ b/db/migrate/20241230154019_create_budgets.rb
@@ -0,0 +1,13 @@
+class CreateBudgets < ActiveRecord::Migration[7.2]
+  def change
+    create_table :budgets, id: :uuid do |t|
+      t.references :family, null: false, foreign_key: true, type: :uuid
+      t.date :start_date, null: false
+      t.date :end_date, null: false
+      t.decimal :budgeted_amount, null: false, precision: 19, scale: 4
+      t.decimal :expected_income, null: false, precision: 19, scale: 4
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/migrate/20241230155132_create_budget_categories.rb b/db/migrate/20241230155132_create_budget_categories.rb
new file mode 100644
index 00000000..e610f684
--- /dev/null
+++ b/db/migrate/20241230155132_create_budget_categories.rb
@@ -0,0 +1,11 @@
+class CreateBudgetCategories < ActiveRecord::Migration[7.2]
+  def change
+    create_table :budget_categories, id: :uuid do |t|
+      t.references :budget, null: false, foreign_key: true, type: :uuid
+      t.references :category, null: false, foreign_key: true, type: :uuid
+      t.decimal :budgeted_amount, null: false, precision: 19, scale: 4
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/migrate/20241230162744_create_goals.rb b/db/migrate/20241230162744_create_goals.rb
new file mode 100644
index 00000000..3cfad28f
--- /dev/null
+++ b/db/migrate/20241230162744_create_goals.rb
@@ -0,0 +1,14 @@
+class CreateGoals < ActiveRecord::Migration[7.2]
+  def change
+    create_table :goals, id: :uuid do |t|
+      t.references :family, null: false, foreign_key: true, type: :uuid
+      t.string :name, null: false
+      t.string :type, null: false
+      t.decimal :target_amount, null: false, precision: 19, scale: 4
+      t.decimal :starting_amount, null: false, precision: 19, scale: 4
+      t.date :start_date, null: false
+      t.date :target_date, null: false
+      t.timestamps
+    end
+  end
+end
diff --git a/db/migrate/20241230164615_income_category.rb b/db/migrate/20241230164615_income_category.rb
new file mode 100644
index 00000000..1a10bc47
--- /dev/null
+++ b/db/migrate/20241230164615_income_category.rb
@@ -0,0 +1,34 @@
+class IncomeCategory < ActiveRecord::Migration[7.2]
+  def change
+    add_column :categories, :classification, :string, null: false, default: "expense"
+
+    reversible do |dir|
+      dir.up do
+        execute <<-SQL
+          UPDATE categories
+          SET classification = 'income'
+          WHERE LOWER(name) = 'income'
+        SQL
+
+        # Assign the transfer classification for any entries marked as transfer
+        execute <<-SQL
+          UPDATE categories
+          SET classification = 'transfer'
+          WHERE id IN (
+            SELECT DISTINCT t.category_id
+            FROM account_entries e
+            INNER JOIN account_transactions t ON t.id = e.entryable_id AND e.entryable_type = 'Account::Transaction'
+            WHERE e.marked_as_transfer = true AND t.category_id IS NOT NULL
+          )
+        SQL
+
+        # We will now use categories to identify one-way transfers, and Account::Transfer for two-way transfers
+        remove_column :account_entries, :marked_as_transfer
+      end
+
+      dir.down do
+        add_column :account_entries, :marked_as_transfer, :boolean, null: false, default: false
+      end
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 0bdce796..0667bfae 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
+ActiveRecord::Schema[7.2].define(version: 2024_12_30_164615) do
   # These are extensions that must be enabled in order to support this database
   enable_extension "pgcrypto"
   enable_extension "plpgsql"
@@ -43,7 +43,6 @@ ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
     t.datetime "created_at", null: false
     t.datetime "updated_at", null: false
     t.uuid "transfer_id"
-    t.boolean "marked_as_transfer", default: false, null: false
     t.uuid "import_id"
     t.text "notes"
     t.boolean "excluded", default: false
@@ -168,6 +167,27 @@ ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
     t.index ["addressable_type", "addressable_id"], name: "index_addresses_on_addressable"
   end
 
+  create_table "budget_categories", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
+    t.uuid "budget_id", null: false
+    t.uuid "category_id", null: false
+    t.decimal "budgeted_amount", precision: 19, scale: 4, null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+    t.index ["budget_id"], name: "index_budget_categories_on_budget_id"
+    t.index ["category_id"], name: "index_budget_categories_on_category_id"
+  end
+
+  create_table "budgets", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
+    t.uuid "family_id", null: false
+    t.date "start_date", null: false
+    t.date "end_date", null: false
+    t.decimal "budgeted_amount", precision: 19, scale: 4, null: false
+    t.decimal "expected_income", precision: 19, scale: 4, null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+    t.index ["family_id"], name: "index_budgets_on_family_id"
+  end
+
   create_table "categories", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
     t.string "name", null: false
     t.string "color", default: "#6172F3", null: false
@@ -175,6 +195,7 @@ ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
     t.datetime "created_at", null: false
     t.datetime "updated_at", null: false
     t.uuid "parent_id"
+    t.string "classification", default: "expense", null: false
     t.index ["family_id"], name: "index_categories_on_family_id"
   end
 
@@ -226,6 +247,19 @@ ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
     t.boolean "data_enrichment_enabled", default: false
   end
 
+  create_table "goals", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
+    t.uuid "family_id", null: false
+    t.string "name", null: false
+    t.string "type", null: false
+    t.decimal "target_amount", precision: 19, scale: 4, null: false
+    t.decimal "starting_amount", precision: 19, scale: 4, null: false
+    t.date "start_date", null: false
+    t.date "target_date", null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+    t.index ["family_id"], name: "index_goals_on_family_id"
+  end
+
   create_table "good_job_batches", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
     t.datetime "created_at", null: false
     t.datetime "updated_at", null: false
@@ -647,7 +681,11 @@ ActiveRecord::Schema[7.2].define(version: 2024_12_27_142333) do
   add_foreign_key "accounts", "plaid_accounts"
   add_foreign_key "active_storage_attachments", "active_storage_blobs", column: "blob_id"
   add_foreign_key "active_storage_variant_records", "active_storage_blobs", column: "blob_id"
+  add_foreign_key "budget_categories", "budgets"
+  add_foreign_key "budget_categories", "categories"
+  add_foreign_key "budgets", "families"
   add_foreign_key "categories", "families"
+  add_foreign_key "goals", "families"
   add_foreign_key "impersonation_session_logs", "impersonation_sessions"
   add_foreign_key "impersonation_sessions", "users", column: "impersonated_id"
   add_foreign_key "impersonation_sessions", "users", column: "impersonator_id"
diff --git a/test/controllers/account/trades_controller_test.rb b/test/controllers/account/trades_controller_test.rb
index cdfd6add..c5ccc109 100644
--- a/test/controllers/account/trades_controller_test.rb
+++ b/test/controllers/account/trades_controller_test.rb
@@ -93,7 +93,7 @@ class Account::TradesControllerTest < ActionDispatch::IntegrationTest
     created_entry = Account::Entry.order(created_at: :desc).first
 
     assert created_entry.amount.positive?
-    assert created_entry.marked_as_transfer
+    assert created_entry.entryable.category.transfer?
     assert_redirected_to @entry.account
   end
 
diff --git a/test/fixtures/account/entries.yml b/test/fixtures/account/entries.yml
index 680710be..8ccf5fb7 100644
--- a/test/fixtures/account/entries.yml
+++ b/test/fixtures/account/entries.yml
@@ -31,7 +31,6 @@ transfer_out:
   amount: 100
   currency: USD
   account: depository
-  marked_as_transfer: true
   transfer: one
   entryable_type: Account::Transaction
   entryable: transfer_out
@@ -42,7 +41,6 @@ transfer_in:
   amount: -100
   currency: USD
   account: credit_card
-  marked_as_transfer: true
   transfer: one
   entryable_type: Account::Transaction
   entryable: transfer_in
diff --git a/test/fixtures/account/transactions.yml b/test/fixtures/account/transactions.yml
index 426d7d58..8c320653 100644
--- a/test/fixtures/account/transactions.yml
+++ b/test/fixtures/account/transactions.yml
@@ -2,5 +2,8 @@ one:
   category: food_and_drink
   merchant: amazon
 
-transfer_out: { }
-transfer_in: { }
\ No newline at end of file
+transfer_out: 
+  category: transfer
+
+transfer_in: 
+  category: transfer
\ No newline at end of file
diff --git a/test/fixtures/budget_categories.yml b/test/fixtures/budget_categories.yml
new file mode 100644
index 00000000..4fb4ed01
--- /dev/null
+++ b/test/fixtures/budget_categories.yml
@@ -0,0 +1,4 @@
+food_and_drink:
+  budget: one
+  category: food_and_drink
+  budgeted_amount: 800
\ No newline at end of file
diff --git a/test/fixtures/budgets.yml b/test/fixtures/budgets.yml
new file mode 100644
index 00000000..e1d6b7a7
--- /dev/null
+++ b/test/fixtures/budgets.yml
@@ -0,0 +1,6 @@
+one:
+  start_date: <%= 1.month.ago.to_date %>
+  end_date: <%= Date.current %>
+  family: dylan_family
+  budgeted_amount: 5000
+  expected_income: 8000
diff --git a/test/fixtures/categories.yml b/test/fixtures/categories.yml
index 958e450e..ba65e506 100644
--- a/test/fixtures/categories.yml
+++ b/test/fixtures/categories.yml
@@ -1,17 +1,33 @@
 one:
   name: Test
+  classification: expense
   family: empty
 
 income:
   name: Income
+  classification: income
+  color: "#fd7f6f"
+  family: dylan_family
+
+transfer:
+  name: Transfer
+  classification: transfer
+  color: "#fd7f6f"
+  family: dylan_family
+
+payment:
+  name: Payment
+  classification: payment
   color: "#fd7f6f"
   family: dylan_family
 
 food_and_drink:
   name: Food & Drink
+  classification: expense
   family: dylan_family
 
 subcategory:
   name: Restaurants
+  classification: expense
   parent: food_and_drink
   family: dylan_family
diff --git a/test/fixtures/goals.yml b/test/fixtures/goals.yml
new file mode 100644
index 00000000..de954377
--- /dev/null
+++ b/test/fixtures/goals.yml
@@ -0,0 +1,8 @@
+saving:
+  name: Vacation savings 
+  type: saving
+  start_date: <%= 1.month.ago.to_date %>
+  target_date: <%= 1.year.from_now.to_date %>
+  target_amount: 10000
+  starting_amount: 2000 
+  family: dylan_family
diff --git a/test/models/account/entry_test.rb b/test/models/account/entry_test.rb
index 6d22179c..7bb32f92 100644
--- a/test/models/account/entry_test.rb
+++ b/test/models/account/entry_test.rb
@@ -74,7 +74,7 @@ class Account::EntryTest < ActiveSupport::TestCase
     create_transaction(account: account, amount: 100)
     create_transaction(account: account, amount: -500) # income, will be ignored
 
-    assert_equal Money.new(200), family.entries.expense_total("USD")
+    assert_equal Money.new(200), account.entries.expense_total("USD")
   end
 
   test "can calculate total income for a group of transactions" do
@@ -82,8 +82,8 @@ class Account::EntryTest < ActiveSupport::TestCase
     account = family.accounts.create! name: "Test", balance: 0, currency: "USD", accountable: Depository.new
     create_transaction(account: account, amount: -100)
     create_transaction(account: account, amount: -100)
-    create_transaction(account: account, amount: 500) # income, will be ignored
+    create_transaction(account: account, amount: 500) # expense, will be ignored
 
-    assert_equal Money.new(-200), family.entries.income_total("USD")
+    assert_equal Money.new(-200), account.entries.income_total("USD")
   end
 end
diff --git a/test/models/account/transfer_test.rb b/test/models/account/transfer_test.rb
index 2c9265c6..fd317205 100644
--- a/test/models/account/transfer_test.rb
+++ b/test/models/account/transfer_test.rb
@@ -28,28 +28,31 @@ class Account::TransferTest < ActiveSupport::TestCase
       name: "Inflow",
       amount: -100,
       currency: "USD",
-      marked_as_transfer: true,
-      entryable: Account::Transaction.new
+      entryable: Account::Transaction.new(
+        category: account.family.default_transfer_category
+      )
 
     outflow = account.entries.create! \
       date: Date.current,
       name: "Outflow",
       amount: 100,
       currency: "USD",
-      marked_as_transfer: true,
-      entryable: Account::Transaction.new
+      entryable: Account::Transaction.new(
+        category: account.family.default_transfer_category
+      )
 
     assert_raise ActiveRecord::RecordInvalid do
       Account::Transfer.create! entries: [ inflow, outflow ]
     end
   end
 
-  test "all transfer transactions must be marked as transfers" do
-    @inflow.update! marked_as_transfer: false
+  test "all transfer transactions must have transfer category" do
+    @inflow.entryable.update! category: nil
 
-    assert_raise ActiveRecord::RecordInvalid do
-      Account::Transfer.create! entries: [ @inflow, @outflow ]
-    end
+    transfer = Account::Transfer.new entries: [ @inflow, @outflow ]
+
+    assert_not transfer.valid?
+    assert_equal "Entries must have transfer category", transfer.errors.full_messages.first
   end
 
   test "single-currency transfer transactions must net to zero" do
diff --git a/test/models/budget_category_test.rb b/test/models/budget_category_test.rb
new file mode 100644
index 00000000..897f8fa8
--- /dev/null
+++ b/test/models/budget_category_test.rb
@@ -0,0 +1,7 @@
+require "test_helper"
+
+class BudgetCategoryTest < ActiveSupport::TestCase
+  # test "the truth" do
+  #   assert true
+  # end
+end
diff --git a/test/models/budget_test.rb b/test/models/budget_test.rb
new file mode 100644
index 00000000..9d870970
--- /dev/null
+++ b/test/models/budget_test.rb
@@ -0,0 +1,7 @@
+require "test_helper"
+
+class BudgetTest < ActiveSupport::TestCase
+  # test "the truth" do
+  #   assert true
+  # end
+end
diff --git a/test/models/family_test.rb b/test/models/family_test.rb
index 74376a7e..24c71b33 100644
--- a/test/models/family_test.rb
+++ b/test/models/family_test.rb
@@ -124,7 +124,7 @@ class FamilyTest < ActiveSupport::TestCase
     create_transaction(account: account, date: 2.days.ago.to_date, amount: -500)
     create_transaction(account: account, date: 1.day.ago.to_date, amount: 100)
     create_transaction(account: account, date: Date.current, amount: 20)
-    create_transaction(account: liability_account, date: 2.days.ago.to_date, amount: -333)
+    create_transaction(account: liability_account, date: 2.days.ago.to_date, amount: -333, category: categories(:payment))
 
     snapshot = @family.snapshot_transactions
 
diff --git a/test/models/goal_test.rb b/test/models/goal_test.rb
new file mode 100644
index 00000000..6046e883
--- /dev/null
+++ b/test/models/goal_test.rb
@@ -0,0 +1,7 @@
+require "test_helper"
+
+class GoalTest < ActiveSupport::TestCase
+  # test "the truth" do
+  #   assert true
+  # end
+end
diff --git a/test/models/transfer_matcher_test.rb b/test/models/transfer_matcher_test.rb
new file mode 100644
index 00000000..f8ac6cd0
--- /dev/null
+++ b/test/models/transfer_matcher_test.rb
@@ -0,0 +1,28 @@
+require "test_helper"
+
+class TransferMatcherTest < ActiveSupport::TestCase
+  include Account::EntriesTestHelper
+
+  setup do
+    @family = families(:dylan_family)
+    @matcher = TransferMatcher.new(@family)
+  end
+
+  test "matches entries with opposite amounts and different accounts within 4 days" do
+    entry1 = create_transaction(account: accounts(:depository), amount: 100, date: Date.current)
+    entry2 = create_transaction(account: accounts(:credit_card), amount: -100, date: 2.days.ago.to_date)
+
+    assert_difference "Account::Transfer.count", 1 do
+      @matcher.match!([ entry1, entry2 ])
+    end
+  end
+
+  test "doesn't match entries more than 4 days apart" do
+    entry1 = create_transaction(account: accounts(:depository), amount: 100, date: Date.current)
+    entry2 = create_transaction(account: accounts(:credit_card), amount: -100, date: Date.current + 5.days)
+
+    assert_no_difference "Account::Transfer.count" do
+      @matcher.match!([ entry1, entry2 ])
+    end
+  end
+end
diff --git a/test/system/transactions_test.rb b/test/system/transactions_test.rb
index 26db48c3..76ab1363 100644
--- a/test/system/transactions_test.rb
+++ b/test/system/transactions_test.rb
@@ -210,7 +210,7 @@ class TransactionsTest < ApplicationSystemTestCase
     end
 
     def number_of_transactions_on_page
-      [ @user.family.entries.without_transfers.count, @page_size ].min
+      [ @user.family.entries.count, @page_size ].min
     end
 
     def all_transactions_checkbox