diff --git a/app/Http/Controllers/API/v1/TransactionController.php b/app/Http/Controllers/API/v1/TransactionController.php
index 3ff48cb2..3905f874 100644
--- a/app/Http/Controllers/API/v1/TransactionController.php
+++ b/app/Http/Controllers/API/v1/TransactionController.php
@@ -17,14 +17,19 @@
 use OpenApi\Attributes as OA;
 use Symfony\Component\HttpKernel\Exception\HttpException;
 use Throwable;
+use App\Services\TransferService;
 
 #[OA\Tag(name: 'Transactions', description: 'Endpoints for managing transactions')]
+/**
+ * @SuppressWarnings(PHPMD.ExcessiveClassComplexity)
+ */
 class TransactionController extends ApiController
 {
     use ApiQueryable;
 
     public function __construct(
-        private RecurringTransactionService $recurringTransactionService
+        private RecurringTransactionService $recurringTransactionService,
+        private TransferService $transferService
     ) {
     }
 
@@ -293,25 +298,7 @@ enum: ['daily', 'weekly', 'monthly', 'yearly']
      */
     public function store(Request $request): JsonResponse
     {
-        $validationResult = $this->validateRequest($request, [
-            'client_id' => ['nullable', 'string', new ValidateClientId()],
-            'amount' => 'required|numeric|min:0.01',
-            'type' => 'required|string|in:income,expense',
-            'description' => 'nullable|string',
-            'datetime' => ['nullable', new Iso8601DateTime()],
-            'created_at' => ['nullable', new Iso8601DateTime()],
-            'group_id' => 'nullable|integer|exists:groups,id',
-            'party_id' => 'nullable|integer|exists:parties,id',
-            'wallet_id' => 'required|integer|exists:wallets,id',
-            'categories' => 'nullable|array',
-            'is_recurring' => 'nullable|boolean',
-            'recurrence_period' => 'nullable|string|in:daily,weekly,monthly,yearly',
-            'recurrence_interval' => 'nullable|integer|min:1',
-            'recurrence_ends_at' => ['nullable', 'date', 'after:today', new Iso8601DateTime()],
-            'categories.*' => 'integer|exists:categories,id',
-            'files' => 'nullable|array',
-            'files.*' => 'file|mimes:' . FileService::ALLOWED_EXTENSIONS . '|max:' . FileService::MAX_KILOBYTES,
-        ]);
+        $validationResult = $this->validateRequestData($request);
 
         if (! $validationResult['isValidated']) {
             return $this->failure($validationResult['message'], $validationResult['code'], $validationResult['errors']);
@@ -320,6 +307,22 @@ public function store(Request $request): JsonResponse
         $data = $validationResult['data'];
         $user = $request->user();
 
+        //check if party_id is the user's "myself" party
+        //and if convert_myself_to_transfer is enabled in configuration. If so, create a transfer instead of a regular transaction
+        if (
+            $this->isMyselfTransfer($data, $user, $request)
+        ) {
+            $transfer = $this->handleMyselfTransfer($data, $user, $request);
+            //return response here to prevent controller from creating a third transaction below
+            // Extract the "Transaction" object from the transfer.
+            $transaction = $transfer->incomeTransaction;
+            return $this->success($transaction, statusCode: 201);
+        }
+
+
+
+
+
         if (! empty($data['client_id'])) {
             $existingTransaction = Transaction::findByClientId($data['client_id'], $user);
             if ($existingTransaction) {
@@ -916,4 +919,63 @@ private function validateResourceOwnership(array $data, array $categories = []):
             }
         }
     }
+
+    private function validateRequestData(Request $request): array
+    {
+        return $this->validateRequest($request, [
+            'convert_myself_to_transfer' => 'sometimes|boolean', //'sometimes' to allow for the possibility of null entries
+            'client_id' => ['nullable', 'string', new ValidateClientId()],
+            'amount' => 'required|numeric|min:0.01',
+            'type' => 'required|string|in:income,expense',
+            'description' => 'nullable|string',
+            'datetime' => ['nullable', new Iso8601DateTime()],
+            'created_at' => ['nullable', new Iso8601DateTime()],
+            'group_id' => 'nullable|integer|exists:groups,id',
+            'party_id' => 'nullable|integer|exists:parties,id',
+            'wallet_id' => 'required|integer|exists:wallets,id',
+            'categories' => 'nullable|array',
+            'is_recurring' => 'nullable|boolean',
+            'recurrence_period' => 'nullable|string|in:daily,weekly,monthly,yearly',
+            'recurrence_interval' => 'nullable|integer|min:1',
+            'recurrence_ends_at' => ['nullable', 'date', 'after:today', new Iso8601DateTime()],
+            'categories.*' => 'integer|exists:categories,id',
+            'files' => 'nullable|array',
+            'files.*' => 'file|mimes:' . FileService::ALLOWED_EXTENSIONS . '|max:' . FileService::MAX_KILOBYTES,
+
+            'from_wallet_id' => 'required_if:convert_myself_to_transfer,true|integer|exists:wallets,id',
+        ]);
+    }
+
+    private function isMyselfTransfer($data, $user, $request): bool
+    {
+        //get user preferences (boolean)
+        $featureEnabled = $user->getConfigValue('create-transfers-for-myself-transactions');
+
+        //identify the party and check its 'is_myself' property;
+        $partyId = $data['party_id'] ?? null;
+        $party = $partyId ? $user->parties()->find($partyId) : null;
+
+        $isMyselfParty = $party && $party->getConfigValue('is-myself');
+
+        return $featureEnabled && $isMyselfParty && $request->has('from_wallet_id');
+    }
+
+    private function handleMyselfTransfer($data, $user, $request)
+    {
+        $fromWallet = $user->wallets()->findOrFail($request['from_wallet_id']);
+        $toWallet = $user->wallets()->findOrFail($data['wallet_id']);
+
+        return $this->transferService->transfer(
+            amountToSend: (float) $data['amount'],
+            fromWallet: $fromWallet,
+            amountToReceive: (float) $data['amount'],
+            toWallet: $toWallet,
+            user: $user,
+            exchangeRate: 1.0,
+            datetime: $data['datetime'] ?? null,
+            transactionClientIds: [
+                'income_transaction_client_id' => $data['client_id'] ?? null
+            ]
+        );
+    }
 }
diff --git a/app/Models/Party.php b/app/Models/Party.php
index 3e8b1827..7e600819 100644
--- a/app/Models/Party.php
+++ b/app/Models/Party.php
@@ -9,6 +9,7 @@
 use Illuminate\Database\Eloquent\Model;
 use Illuminate\Database\Eloquent\SoftDeletes;
 use OpenApi\Attributes as OA;
+use Whilesmart\ModelConfiguration\Traits\Configurable;
 
 #[OA\Schema(
     schema: 'Party',
@@ -21,12 +22,14 @@
             new OA\Property(property: 'id', description: 'ID of the icon', type: 'integer'),
             new OA\Property(property: 'path', description: 'Image of the icon', type: 'string'),
             new OA\Property(property: 'type', description: 'type of icon( image or icon or emoji)', type: 'string'),
+            new OA\Property(property: 'is_myself', description: 'Whether this party represents the user themselves', type: 'boolean'),
         ], type: 'object'),
     ],
     type: 'object'
 )]
 class Party extends Model
 {
+    use configurable;
     use HasClientCreatedAt;
     use HasFactory;
     use Iconable;
diff --git a/app/Models/User.php b/app/Models/User.php
index c15230de..46b07236 100644
--- a/app/Models/User.php
+++ b/app/Models/User.php
@@ -133,4 +133,15 @@ public function preferredLocale(): ?string
 
         return is_string($locale) && $locale !== '' ? $locale : null;
     }
+    protected static function booted()
+    {
+        static::created(function ($user) {
+            // Automatically enable this setting for every new user
+            $user->setConfigValue(
+                'create-transfers-for-myself-transactions',
+                true,
+                \Whilesmart\ModelConfiguration\Enums\ConfigValueType::Boolean
+            );
+        });
+    }
 }
diff --git a/database/seeders/ConfigurationSeeder.php b/database/seeders/ConfigurationSeeder.php
new file mode 100644
index 00000000..a7638baf
--- /dev/null
+++ b/database/seeders/ConfigurationSeeder.php
@@ -0,0 +1,23 @@
+<?php
+
+namespace Database\Seeders;
+
+use Illuminate\Database\Seeder;
+
+class ConfigurationSeeder extends Seeder
+{
+    /**
+     * Run the database seeds.
+     */
+    public function run(): void
+    {
+        //enable feature for all existing users by default, can be turned off by user if they want
+        foreach (\App\Models\User::all() as $user) {
+            $user->setConfigValue('create-transfers-for-myself-transactions', true, \Whilesmart\ModelConfiguration\Enums\ConfigValueType::Boolean);
+        }
+
+
+
+
+    }
+}
diff --git a/phpunit.xml b/phpunit.xml
index 2f813bae..88c8a42e 100644
--- a/phpunit.xml
+++ b/phpunit.xml
@@ -32,5 +32,6 @@
         <env name="SESSION_DRIVER" value="array"/>
         <env name="TELESCOPE_ENABLED" value="false"/>
         <env name="FIREBASE_CREDENTIALS" value=""/>
+
     </php>
 </phpunit>
diff --git a/public/docs/api.json b/public/docs/api.json
index 798ff7c3..ce072ee7 100644
--- a/public/docs/api.json
+++ b/public/docs/api.json
@@ -5564,6 +5564,10 @@
                             "type": {
                                 "description": "type of icon( image or icon or emoji)",
                                 "type": "string"
+                            },
+                            "is_myself": {
+                                "description": "Whether this party represents the user themselves",
+                                "type": "boolean"
                             }
                         },
                         "type": "object"
diff --git a/tests/Feature/MyselfTransferTest.php b/tests/Feature/MyselfTransferTest.php
new file mode 100644
index 00000000..212a4114
--- /dev/null
+++ b/tests/Feature/MyselfTransferTest.php
@@ -0,0 +1,101 @@
+<?php
+
+namespace Tests\Feature;
+
+use App\Models\Party;
+use App\Models\User;
+use App\Models\Wallet;
+use App\Models\Transaction;
+use App\Models\Transfer;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+use Tests\TestCase;
+use Whilesmart\ModelConfiguration\Enums\ConfigValueType;
+
+class MyselfTransferTest extends TestCase
+{
+    use RefreshDatabase;
+
+    public function test_income_from_myself_is_handled_as_transfer()
+    {
+        // 1. Setup Data
+        $user = User::factory()->create();
+        $party = Party::factory()->create(['user_id' => $user->id]);
+
+        //set user preference to use "myself" party
+        $user->setConfigValue(
+            'create-transfers-for-myself-transactions',
+            true,
+            ConfigValueType::Boolean
+        );
+        //set party flag
+        $party->setConfigValue(
+            'is-myself',
+            true,
+            ConfigValueType::Boolean
+        );
+
+        //create the myself party
+        $walletSource = Wallet::factory()->create(['user_id' => $user->id, 'balance' => 1000]);
+        $walletDest = Wallet::factory()->create(['user_id' => $user->id, 'balance' => 0]);
+
+
+
+        $fakeClientId = \Illuminate\Support\Str::uuid() . ':' . \Illuminate\Support\Str::uuid();
+        // 2. The Payload
+        $payload = [
+            'amount' => 200,                // Validator needs 'amount'
+            'type' => 'income',             // Validator needs 'type'
+            'party_id' => $party->id, // Triggers the 'is_myself' logic
+            'wallet_id' => $walletDest->id, // Becomes 'toWallet'
+            'from_wallet_id' => $walletSource->id, // Becomes 'fromWallet'
+            'client_id' => $fakeClientId, // To ensure idempotency in tests
+            'description' => 'Moving cash to bank',
+            'datetime' => now()->toIso8601String(),
+        ];
+
+        // 3. Act
+        $response = $this->actingAs($user, 'sanctum')
+                         ->postJson('/api/v1/transactions', $payload);
+
+        // 4. Assertions
+        $response->assertStatus(201);
+
+        // Check if a Transfer record was created instead of just a loose transaction
+        $this->assertDatabaseHas('transfers', [
+            'from_wallet_id' => $walletSource->id,
+            'to_wallet_id' => $walletDest->id,
+            'amount' => 200,
+        ]);
+
+        // Check balances
+        $this->assertEquals(800, $walletSource->fresh()->balance);
+        $this->assertEquals(200, $walletDest->fresh()->balance);
+
+        // Ensure the transaction is linked to a transfer
+        $this->assertNotNull(Transaction::where('amount', 200)->first()->transfer_id);
+    }
+
+    public function test_normal_income_stays_as_transaction()
+    {
+        $user = User::factory()->create();
+        $wallet = Wallet::factory()->create(['user_id' => $user->id, 'balance' => 0]);
+        $normalParty = Party::factory()->create([
+            'user_id' => $user->id,
+            ]);
+
+        $payload = [
+            'amount' => 100,
+            'type' => 'income',
+            'party_id' => $normalParty->id,
+            'wallet_id' => $wallet->id,
+        ];
+
+        $this->actingAs($user, 'sanctum')
+             ->postJson('/api/v1/transactions', $payload)
+             ->assertStatus(201);
+
+        // Should NOT create a transfer
+        $this->assertEquals(0, Transfer::count());
+        $this->assertEquals(100, $wallet->fresh()->balance);
+    }
+}