diff --git a/cypress/factories/settings.ts b/cypress/factories/settings.ts
index ac0316f..4f0e1d3 100644
--- a/cypress/factories/settings.ts
+++ b/cypress/factories/settings.ts
@@ -21,6 +21,7 @@ export default function createSettings(
     fractionDigits: 2,
     startDate: 1562450400000,
     startBalance: 0,
+    ignorePendingTransactions: false,
     ...settings,
   };
 }
diff --git a/src/budget/Types.ts b/src/budget/Types.ts
index 694c61b..f348276 100644
--- a/src/budget/Types.ts
+++ b/src/budget/Types.ts
@@ -7,6 +7,7 @@ import {
 } from '../moneymoney';
 import { isLeft } from 'fp-ts/lib/Either';
 import { ThrowReporter } from 'io-ts/lib/ThrowReporter';
+import semver from 'semver';
 
 /**
  * ## 0.0.1 -> 0.0.2
@@ -14,8 +15,11 @@ import { ThrowReporter } from 'io-ts/lib/ThrowReporter';
  *
  * ## 0.0.2 -> 0.0.3
  * removed setting.numberLocale in favor of always using system
+ *
+ * ## 0.0.3 -> 0.0.4
+ * added setting.ignorePendingTransactions
  */
-export const VERSION = '0.0.3';
+export const VERSION = '0.0.4';
 
 const categoryShape = t.partial({
   amount: t.number,
@@ -39,6 +43,7 @@ const incomeCategoryShape = t.type(
 const settingsShape = t.type(
   {
     fractionDigits: t.number,
+    ignorePendingTransactions: t.boolean,
     startDate: t.number,
     currency: t.string,
     startBalance: t.number,
@@ -76,13 +81,17 @@ export function validateBudgetState(data: unknown): BudgetState {
   if (typeof data !== 'object' || data === null) {
     throw new Error('Invalid budget file format');
   }
-  const version: unknown = (data as any).version;
-  if (!version || version === '0.0.1') {
+  const version: string = (data as any).version as string;
+  if (!version || !semver.valid(version) || !semver.satisfies(version, '>0.0.1')){
     throw new Error(
       'File format not supported. Please use an earlier version of BudgetBudget to open this file',
     );
   }
-
+  // Upgrade to 0.0.4 version format
+  if (semver.lt(version, '0.0.4')) {
+    (data as any).settings.ignorePendingTransactions = false;
+    (data as any).version = '0.0.4';
+  }
   const c = budgetStateShape.decode(data);
   if (isLeft(c)) {
     throw ThrowReporter.report(c);
diff --git a/src/budget/budgetReducer.ts b/src/budget/budgetReducer.ts
index 5a46e27..1cee0a1 100644
--- a/src/budget/budgetReducer.ts
+++ b/src/budget/budgetReducer.ts
@@ -14,6 +14,9 @@ export const ACTION_SET_NAME = Symbol('SET_NAME');
 export const ACTION_SETTINGS_SET_FRACTION_DIGITS = Symbol(
   'ACTION_SETTINGS_SET_FRACTION_DIGITS',
 );
+export const ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS = Symbol(
+  'ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS',
+);
 export const ACTION_SETTINGS_SET_SELECTED_ACCOUNTS = Symbol(
   'ACTION_SETTINGS_SET_SELECTED_ACCOUNTS',
 );
@@ -71,6 +74,10 @@ type SetSettingsFractionDigits = {
   type: typeof ACTION_SETTINGS_SET_FRACTION_DIGITS;
   payload: number;
 };
+type SetSettingsIgnorePendingTransactions = {
+  type: typeof ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS;
+  payload: boolean;
+};
 type SetSettingsSelectedAccounts = {
   type: typeof ACTION_SETTINGS_SET_SELECTED_ACCOUNTS;
   payload: string[];
@@ -125,6 +132,7 @@ export type Action =
   | SetCategoryRolloverAction
   | SetNameAction
   | SetSettingsFractionDigits
+  | SetSettingsIgnorePendingTransactions
   | SetSettingsSelectedAccounts
   | SetSettingsStartDate
   | SetSettingsStartBalance
@@ -233,6 +241,14 @@ function budgetReducer(state: BudgetState, action: Action): BudgetState {
           fractionDigits: action.payload,
         },
       };
+    case ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS:
+      return {
+        ...state,
+        settings: {
+          ...state.settings,
+          ignorePendingTransactions: action.payload,
+        },
+      };
     case ACTION_SETTINGS_SET_SELECTED_ACCOUNTS:
       return {
         ...state,
diff --git a/src/budget/useBudgets.ts b/src/budget/useBudgets.ts
index 5c32aa7..242448d 100644
--- a/src/budget/useBudgets.ts
+++ b/src/budget/useBudgets.ts
@@ -15,7 +15,7 @@ export default function useBudgets(
   defaultCategories: Category[] = [],
   {
     budgets,
-    settings: { incomeCategories, fractionDigits, startBalance, startDate },
+    settings: { incomeCategories, fractionDigits, startBalance, startDate, ignorePendingTransactions },
   }: BudgetState,
 ): [MonthData[], (add: number) => void] {
   const defaultCategoryIds = useMemo(
@@ -23,8 +23,8 @@ export default function useBudgets(
     [defaultCategories],
   );
   const balances = useMemo(
-    () => calculateBalances(transactions, defaultCategoryIds),
-    [transactions, defaultCategoryIds],
+    () => calculateBalances(transactions, defaultCategoryIds, ignorePendingTransactions),
+    [transactions, defaultCategoryIds, ignorePendingTransactions],
   );
   const getInitial = useMemo(() => {
     const initial: InterMonthData = {
diff --git a/src/lib/initialSettings.ts b/src/lib/initialSettings.ts
index 6c5fcf7..b2c11c7 100644
--- a/src/lib/initialSettings.ts
+++ b/src/lib/initialSettings.ts
@@ -8,6 +8,7 @@ const settings: BudgetState['settings'] = {
   currency: 'EUR',
   incomeCategories: [],
   fractionDigits: 2,
+  ignorePendingTransactions: false,
   startDate: startOfMonth(subMonths(getToday(), 1)).getTime(),
   startBalance: 0,
 };
diff --git a/src/moneymoney/calculateBalances.ts b/src/moneymoney/calculateBalances.ts
index 1486f44..2075961 100644
--- a/src/moneymoney/calculateBalances.ts
+++ b/src/moneymoney/calculateBalances.ts
@@ -4,8 +4,12 @@ import { formatDateKey } from '../lib';
 export default function calculateBalances(
   transactions: Transaction[],
   defaultCategoryIds: string[],
+  ignorePendingTransactions: boolean
 ): Balances {
   return transactions.reduce((memo, transaction) => {
+    if (!transaction.booked && ignorePendingTransactions) {
+      return memo;
+    }
     const key = formatDateKey(transaction.bookingDate);
     let balance = memo[key];
     if (!balance) {
diff --git a/src/views/Settings/General/General.tsx b/src/views/Settings/General/General.tsx
index be9c24b..7e5763a 100644
--- a/src/views/Settings/General/General.tsx
+++ b/src/views/Settings/General/General.tsx
@@ -9,6 +9,7 @@ import CurrencySetting from './Currency';
 import { Props } from './Types';
 import { Loading } from '../../../components';
 import { NumberFormatter } from '../../../lib/createNumberFormatter';
+import IgnorePendingTransactionsSetting from './IgnorePendingTransactions';
 
 export default function Settings(
   props: Props & { numberFormatter: NumberFormatter },
@@ -26,6 +27,8 @@ export default function Settings(
       <hr />
       <FractionDigitsSetting {...props} />
       <hr />
+      <IgnorePendingTransactionsSetting {...props} />
+      <hr />
       <StartDateSetting {...props} />
       <StartBalanceSetting {...props} />
     </>
diff --git a/src/views/Settings/General/IgnorePendingTransactions.tsx b/src/views/Settings/General/IgnorePendingTransactions.tsx
new file mode 100644
index 0000000..51a4e1e
--- /dev/null
+++ b/src/views/Settings/General/IgnorePendingTransactions.tsx
@@ -0,0 +1,35 @@
+import React, { useCallback } from 'react';
+import { ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS } from '../../../budget';
+import Setting from '../Setting';
+import { Props } from './Types';
+
+export default function IgnorePendingTransactionsSetting({
+  state: {
+    settings: { ignorePendingTransactions },
+  },
+  dispatch,
+}: Props) {
+  const onChange = useCallback(
+    (ev: React.ChangeEvent<HTMLInputElement>) => {
+      dispatch({
+        type: ACTION_SETTINGS_SET_IGNORE_PENDING_TRANSACTIONS,
+        payload: ev.target.checked,
+      });
+    },
+    [dispatch],
+  );
+
+  return (
+    <Setting
+      label="Ignore pending transactions"
+      id="setting-ignore-pending-transactions"
+    >
+      <input
+        type="checkbox"
+        id="setting-ignore-pending-transactions"
+        checked={ignorePendingTransactions}
+        onChange={onChange}
+      />
+    </Setting>
+  );
+}