diff --git a/Controllers/controller.js b/Controllers/controller.js
new file mode 100644
index 0000000..0e2c04b
--- /dev/null
+++ b/Controllers/controller.js
@@ -0,0 +1,122 @@
+const model = require("../model/model.js");
+
+// POST : localhost:8080/api/create_categories
+async function create_Categories(req, res) {
+  try {
+    const Create = new model.Categories({
+      // type: req.body.type,
+      // color: req.body.color
+      type: "Investment",
+      color: "#9d4edd",
+    });
+
+    await Create.save();
+    return res.json(Create);
+  } catch (error) {
+    console.error(error);
+    res.status(500).send({ message: "Error creating category" });
+  }
+}
+
+async function get_Categories(req, res) {
+  try {
+    let data = await model.Categories.find({});
+    let filter = await data.map((v) =>
+      Object.assign({}, { type: v.type, color: v.color })
+    );
+    return res.json(filter);
+  } catch (error) {
+    console.error(error);
+    res.status(500).send({ message: "Error fetching categories" });
+  }
+}
+
+//POST request to api/transaction
+async function create_Transaction(req, res) {
+  if (!req.body)
+    return res.status(400).send({ message: "POST HTTP Data not provided" });
+  try {
+    let { name, type, amount } = req.body;
+
+    const create = await new model.Transaction({
+      name,
+      type,
+      amount,
+      date: new Date(),
+    });
+
+    await create.save();
+    return res.json(create);
+  } catch (error) {
+    console.error(error);
+    res.status(500).send({ message: "Error creating transaction" });
+  }
+}
+
+//  get: http://localhost:8080/api/transaction
+async function get_Transaction(req, res) {
+  let data = await model.Transaction.find({});
+  return res.json(data);
+}
+
+//  delete: http://localhost:8080/api/transaction
+async function delete_Transaction(req, res) {
+  if (!req.body) {
+    return res.status(400).json({ message: "Request body not Found" });
+  }
+
+  try {
+    // Use await with deleteOne() to handle the promise
+    await model.Transaction.deleteOne(req.body);
+    res.json("Record Deleted...!");
+  } catch (error) {
+    console.error(error);
+    res
+      .status(500)
+      .json({ message: "Error while deleting Transaction Record" });
+  }
+}
+
+//  get: http://localhost:8080/api/labels
+async function get_Labels(req, res) {
+  model.Transaction.aggregate([
+    {
+      $lookup: {
+        from: "categories",
+        localField: "type",
+        foreignField: "type",
+        as: "categories_info",
+      },
+    },
+    {
+      $unwind: "$categories_info",
+    },
+  ])
+    .then((result) => {
+      let data = result.map((v) =>
+        Object.assign(
+          {},
+          {
+            _id: v._id,
+            name: v.name,
+            type: v.type,
+            amount: v.amount,
+            color: v.categories_info["color"],
+          }
+        )
+      );
+      res.json(data);
+    })
+    .catch((error) => {
+      res.status(400).json("Looup Collection Error");
+    });
+}
+
+module.exports = {
+  create_Transaction,
+  get_Transaction,
+  create_Categories,
+  get_Categories,
+  delete_Transaction,
+  get_Labels,
+};
diff --git a/DB/connection.js b/DB/connection.js
new file mode 100644
index 0000000..c9b394e
--- /dev/null
+++ b/DB/connection.js
@@ -0,0 +1,13 @@
+const mongoose = require("mongoose");
+
+const conn = mongoose
+  .connect(process.env.ATLAS_URI)
+  .then((db) => {
+    console.log("Connected to MongoDB - Finance Tracker");
+    return db;
+  })
+  .catch((e) => {
+    console.log(e);
+  });
+
+module.exports = conn;
diff --git a/model/model.js b/model/model.js
new file mode 100644
index 0000000..ed47fe4
--- /dev/null
+++ b/model/model.js
@@ -0,0 +1,26 @@
+const mongoose = require("mongoose");
+
+const Schema = mongoose.Schema;
+
+// categories => field => ['type', 'color']
+const categories_model = new Schema({
+  type: { type: String, default: "Investment" },
+  color: { type: String, default: "#FCBE44" },
+});
+
+// transactions  => field => ['name', 'type', 'amount', 'date']
+const transaction_model = new Schema({
+  name: { type: String, default: "Anonymous" },
+  type: { type: String, default: "Investment" },
+  amount: { type: Number },
+  date: { type: Date, default: Date.now },
+});
+
+const Categories = mongoose.model("categories", categories_model);
+const Transaction = mongoose.model("transaction", transaction_model);
+
+exports.default = Transaction;
+module.exports = {
+  Categories,
+  Transaction,
+};
diff --git a/package-lock.json b/package-lock.json
index 904ad37..1299856 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -17,7 +17,7 @@
         "express-async-handler": "^1.2.0",
         "jsonwebtoken": "^9.0.2",
         "mongoose": "^8.0.4",
-        "nodemon": "^3.0.2",
+        "nodemon": "^3.1.0",
         "punycode": "^2.3.1",
         "react-jwt": "^1.2.0"
       },
@@ -1325,9 +1325,9 @@
       }
     },
     "node_modules/nodemon": {
-      "version": "3.0.2",
-      "resolved": "https://registry.npmjs.org/nodemon/-/nodemon-3.0.2.tgz",
-      "integrity": "sha512-9qIN2LNTrEzpOPBaWHTm4Asy1LxXLSickZStAQ4IZe7zsoIpD/A7LWxhZV3t4Zu352uBcqVnRsDXSMR2Sc3lTA==",
+      "version": "3.1.0",
+      "resolved": "https://registry.npmjs.org/nodemon/-/nodemon-3.1.0.tgz",
+      "integrity": "sha512-xqlktYlDMCepBJd43ZQhjWwMw2obW/JRvkrLxq5RCNcuDDX1DbcPT+qT1IlIIdf+DhnWs90JpTMe+Y5KxOchvA==",
       "dependencies": {
         "chokidar": "^3.5.2",
         "debug": "^4",
diff --git a/package.json b/package.json
index c9669b5..4016ff7 100644
--- a/package.json
+++ b/package.json
@@ -19,7 +19,7 @@
     "express-async-handler": "^1.2.0",
     "jsonwebtoken": "^9.0.2",
     "mongoose": "^8.0.4",
-    "nodemon": "^3.0.2",
+    "nodemon": "^3.1.0",
     "punycode": "^2.3.1",
     "react-jwt": "^1.2.0"
   },
diff --git a/router/route.js b/router/route.js
new file mode 100644
index 0000000..ff88dd6
--- /dev/null
+++ b/router/route.js
@@ -0,0 +1,17 @@
+const routes = require("express").Router();
+const controller = require("../Controllers/controller");
+
+routes
+  .route("/api/categories")
+  .post(controller.create_Categories)
+  .get(controller.get_Categories);
+
+routes
+  .route("/api/transaction")
+  .post(controller.create_Transaction)
+  .get(controller.get_Transaction)
+  .delete(controller.delete_Transaction);
+
+routes.route("/api/labels").get(controller.get_Labels);
+
+module.exports = routes;
diff --git a/server.js b/server.js
new file mode 100644
index 0000000..01831ef
--- /dev/null
+++ b/server.js
@@ -0,0 +1,30 @@
+const express = require("express");
+const app = express();
+const cors = require("cors");
+
+const dotenv = require("dotenv");
+dotenv.config("./.env");
+
+const PORT = process.env.BUDGET_PORT || 5000;
+
+app.use(cors());
+app.use(express.json());
+app.use(require("./router/route.js"));
+
+const con = require("./DB/connection.js");
+
+con
+  .then((db) => {
+    if (!db) return process.exit(1);
+
+    app.listen(PORT, () => {
+      console.log(`Server is running on port: ${PORT}`);
+    });
+
+    app.on("error", (err) => {
+      console.log(`Server error: ${err}`);
+    });
+  })
+  .catch((e) => {
+    console.log(e);
+  });