Your steps are correct. I have a specific category called ‘Saving for the move’ that’s an expense. I create a new transactions and then assign it to the category ‘Savings for move’ when I send money to the my savings account.
The reason why I go back and edit the transaction is I want to know how much I actually sent. If I withdraw 100$ from my savings that was recorded in these transactions, I need to represent that somewhere. The two ways to represent that would be to create specific transaction to show that I pulled out the 100$, or edit the existing transaction. Editing the existing transaction was easiest to do.
If I didn’t edit these transactions, it would show that I “spent” more than I actually did on this savings category. This would make it so that the rest of the budgeting is off as I’ve spent more than I did on this and don’t have the funds to allocate elsewhere.
I use the monthyl budget solution and do a 0 sum budgeting approach where all of my income is budgeted out to the different categories. If I didn’t edit this amount, I would show that my ‘actual expenses’ were more than my budgeted income. If you’re not zero sum budgeting, it may not neccessarily make a difference to you as it would only show that you spent more than you actually did. on the savings category.
I hope this helps further!