Mint: The Ultimate Tool for Simplifying Your Budgeting Process

Budgeting can seem like a frustrating task, especially if you spend most of your time managing your budget rather than analyzing it. The real purpose of budgeting is to feel in control of your money and gain a better understanding of where your money goes. To create a realistic budget, you must know what’s happening with your finances. For individuals who have struggled with budgeting in the past, Mint is a great free personal finance tool that can help you track your spending and other areas of your finances. Here’s how to get started with Mint:

1. Only Connect Spending Accounts

In Mint, you can connect virtually any account you possess, including bank accounts, investment accounts, mortgages, student loans, and more. However, to stay focused on spending data, only connect your checking accounts and charge accounts. By doing so, you can concentrate on spending data when you log in, without distractions.

2. Delete the Budgets

You already know what your monthly rent is, meaning you don’t need a budget for that. People don’t often overspend on things like gas, electricity, utilities, and other necessary expenses, so the budget for these categories may not be necessary. What you want to know is what you’re spending in a given area, which you can always find in the Trends tab. Delete the budgets until you have a couple of months’ worth of data, and then add back budgets for the relevant areas, such as Eating Out and Shopping to help with accountability.

3. Always Use Rules

Mint’s auto-categorization is exceptional, but you may need to categorize things it doesn’t recognize once every couple of weeks. When you categorize, remember to click the “Rule” check box that instructs Mint to categorize all future purchases from that vendor in the same way.

4. Leave ATM Withdrawals Alone

Many people wonder whether they should categorize their ATM cash. Unless you find that ATM withdrawals are excessive, the best option is to leave them alone. Mint categorizes them as ATM Withdrawal, so simply leave them as they are. If you know you only spend on one category, you may easily categorize it, but leaving it “as is” is a simpler option.

5. No Split Categorization

Trying to apply multiple categories to one transaction, such as a visit to Target or Costco, merely complicates matters. Choose one category, such as Home Supplies, and stick with it. The problem isn’t that you went over your shampoo budget; it’s that you went to Target or Costco four times in a month! Split categorization won’t provide additional clarity in such a situation.

By adhering to these guidelines, you’ll have sufficient time to examine the Trends tab in Mint, gaining a better understanding of your spending habits. You can then take strategic action to positively influence your cash flow.

In summary, budgeting can be a time-consuming task, but it need not be frustrating. With Mint, a free personal finance tool, you can track and analyze your finances and gain a better understanding of where your money is going. With these simple steps, you can stay focused on spending data and take control of your finances.