Review of Mint Financial Site

Mint Home

Mint.com is a total pain in the ass to set up. But once you have it set up, it is the greatest thing ever.

What Mint offers you is centralized reporting, monitoring, and analysis of your personal finances. It does this by logging into your online banking accounts, reading your transactions and balances, and categorizing and organizing everything to make it easy for you to understand. ((I imagine you’re thinking, “OMG this seems like a huge security risk!” You may never be comfortable with something like this, but I’ll tell you why I’m not too worried. 1) It was just bought by Intuit, the company that also makes Quicken. They’ve got a reputation on the line, plus some federal oversight, so I trust them. 2) I read through all their privacy, terms of service, and end user license agreement stuff. It looks legit to me, and after a couple of months of using them, still seems solid.))

Fracking Online Bank Accounts

If you've got a lot of accounts, Mint will take even more work to get Just Right.
If you've got a lot of accounts, Mint will take even more work to get Just Right.

It’s hard to say which feature I value most in Mint, but the ability to see all of my finances in one place is pretty wonderful. Regardless of which credit card or checking account we use, I have one list of transactions. I can see at a glance how our investments are doing, how much is in our savings, and what bills have come out.

But this also means I have to have every account in there to get the full picture, and I couldn’t rest until I had them all in. My investment accounts were the hardest as they had the most strict security, followed by a couple of credit cards. Error after error, setting and resetting security questions, every problem you can think of. And yet, once it’s done, it is simply wonderful.

If you’ve got a lot of accounts like we do, you’re going to be tempted to quit before you have even started. When you run into snags, it’s easy to throw your hands up and move on. You haven’t seen what the site does yet, so it doesn’t seem worth the effort.

Let me assure you, once you get this step done, it gets way better. Most of the accounts will stay setup forever, and while you might have to put some security answers in now and again, mostly everything will Just Work. Get past the initial setup and you will be rewarded.

With MINTY PIE

Minty Pie

Once you have all your accounts in, Mint will have built a list of your last however-many transactions. You may need to spend some time tweaking categories and whatnot, but that’s kind of fun. You can select from a long list that Mint already has ((Pro tip: Don’t set transactions to broad categories, such as Auto, but to specific ones such as Auto Insurance. This will help a lot when you get to budgeting.)) or make your own–just try and be consistent. Once everything is categorized, you can begin to see some trends.

The trending tools in Mint give you two neat functions. First, you can see how much you spent on what. I’m not the type to keep a check register of every purchase we make, but one month I tried to do so. I needed to know where our money was going, so I tried to mark down every cup of coffee, every order of Chinese food, and every MP3 we purchased. It quickly got out of control and I just couldn’t manage it–I gave up. Mint does all of that automatically, based off our actual accounts, which is freaking awesome. And then it shows me all that in a delicious pie chart.

You can drill down into this to see how much you spent inside each broad category (for instance, inside Food & Dining we have: Groceries, Restaurants, Coffee Shops, and Fast Food), and you can also organize it by tag or merchant. What’s also neat is the ability to set this to bar graphs and compare it against other people (who use Mint, obviously) in your country, state, or in other places of the world. It helps put expenses into perspective if you see that, on average, everyone is spending way less than you on something. Or, as might be the case, if they’re spending way more than you, you can feel kind of good about it.

Trends will help you see where your money is going, and that will help you decide what your budget needs to be.

Realistic Budgeting

budgetbars
As a general rule, your budget should not look like a Christmas tree.

Something Mint has taught me about budgeting is how to make our budget realistic. It’s easy to set a budget and not stick to it, which is what I have done for years. Or, to put it more accurately, we would budget for the big expenses (rent/mortgage, utilities, insurance, groceries, etc.) but not for little ones (coffee, eating out, clothes). We didn’t have any way to save for those things specifically, nor did we have any way to measure and account for them. If we needed to, we took from savings.

Once we could see how we generally spent our money from the trend analysis, though, we could set some definite goals and limits. It’s important to be able to tell yourself, “No, I won’t spend more than $$ on <item I want>,” but it’s worthwhile to prioritize your desires and make sure you’re not miserable. For instance, I want April to feel free to buy coffee in the morning, but we can’t afford for her to buy a latte every day. We budget enough for her to get a regular coffee most days and limit ourselves to that. We don’t say, “No more coffee!” because that would be crazy.

Mint will also let you do rolling budgets and pre-filled budgets for extra-monthly expenses. Let me give two examples to clarify these.

A rolling budget allows you to roll the balance of a budget from one month to the next. We use this for most of ours, but the best example is on utilities. Over the course of the year, our utilities average about $141 per month. During nice months (like the one we just finished) though, it’ll be a lot less. We can budget $141, knowing that’s average, and when we only spend $80 on utilities, the other $59 can roll to the next month. This will add up until we hit one of those terrible periods where our utility cost spikes to $250 a month for 2-3 months, and since we budgeted and rolled money accordingly, we’re fine. Doing things this way prevents us from spending the excess (we could have just spent the extra $59 on something else, but then we’d be screwed later) because the money stays in the utility budget and is accounted for.

A pre-filled budget is ideal for expenses that only crop up occasionally. For instance, we pay a $22 trash fee every three months so the nice men with the truck will come and pick up our garbage. Mint lets me set that up and then fills a budget of $7 every month, so in three months there will be $22. This helps me save for the expense and keep us accountable.

We use rolling budgets for food, clothing, and some other things as well so we can do fun things. Maybe April can’t get the dress she wants this month, but the money will roll over and she can get it next month, or something. We have a pre-filled budget for Sam’s Club as well, where we spend lots of money on bulk items (and by buying in bulk we save more in the long run). We don’t need to go every month, but we spend a lot of money when we do, so it’s good to plan for that in advance.

Grow Strong in the Force

Keeping an eye on your finances, knowing where your money is going, and adjusting your spending accordingly to meet your goals are important keys to financial success. If you have ever reached the end of your bank account and been confused where all your money went, something like Mint would probably be really helpful for you. You don’t have to use this site, but from experience I can say that it’s a lot easier than doing all this by hand.

I was previously managing our finances through a Google Spreadsheet. I kept track of the big expenses throughout the month, kept an eye on what would be left in our checking account by the end of the month, and tried to coordinate everything between the different accounts. It worked, but I didn’t have a good overall picture of our finances or financial health. I couldn’t analyze the trends in our spending. Now I can, and that means I can make adjustments far more easily.

I’d suggest you at least drop by their site and check it out. Mint has been a HUGE help to me, and I think it could be helpful to a lot of other people I know too. Let me know if you have any questions or need any help with it.

2 thoughts on “Review of Mint Financial Site

  1. Did you know google now will search your “social circle?” So when I typed in budgeting software, your posts came up in addition to the google stuff. Wonderful! So thanks for this post, I’m going to set this up in the next few days. I’ll let you know on Saturday how it goes. 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s