Digital Budgeting - Lesson 2

So, you've set up a brand new Mint.com account.  Now what?

If you use your credit or debit cards for the majority of your purchases this should be easy.  You will notice that at the top of the screen seven tabs (Overview, Transactions, Budgets, Goals, Trends, Investments, & Ways to Save).  Let's set up your "Budgets".

What categories should be in your budget?  -- This is where Dave Ramsey comes in.  Below I have listed out each category.  We are not going to put dollar amounts to the categories yet.  As you set up the budgets in Mint you may notice that it automatically puts a dollar amount in there.  That's ok.  That number is the average amount that Mint users have for that budget.  Go ahead and leave that in there to see where you compare to the average Mint user.  So let's get these categories set up!

Click the "Budgets" tab at the top

Next Click the "Create a Budget" tab (seen in the lower left of the above picture)

A screen like this should appear

If you click the up/down arrows to the right of the "Choose a Category" box you will see that you can add each budget.  You can also create your own sub category by going to "Add/Edit Categories" at the bottom of the subcategory list.  

When will each of these budgets occur?  Most likely you will choose "Every Month" since we are setting up monthly budgets.  

If you click the box for "Start each new month with the previous month's leftover amount" you will be able to see your budgets add up.  In theory this works.  I'm still getting use to Mint so I can't say for sure if this will work.  If you don't spend all that is allotted in your budget you should have that money in your checking account.  I'm still cleaning up our credit cards from our last move a couple of months ago so like I said, I can't say for sure if it works. 

Leave the "Amount" box with the number the Mint puts in there.  If it doesn't put a number in there then just use $10.  We will fill in the dollar amounts in the next lesson.

Now go ahead and create all of your budgets.  You should only have a budget for the 11 bold items. 

See you next lesson!

Housing  

  -Mortgage/Rent

  -2nd Mortgage

  -Real Estate Taxes

  -Maint & Repairs

  -Association Dues

Utilities 

  -Electricity

  -Gas

  -Water

  -Trash

  -Phone/Mobile

  -Internet

  -Cable

Food  

  -Groceries

  -Restaurants

Medical/Health  

  -Medications

  -Doctor Bills

  -Dentist

  -Optometrist

  -Vitamins

  -Other (We insert school sports here)

  -Other

Transportation  

  -Gas/Fuel

  -Maint & Repairs

    -Oil Changes

    -Tires

    -Unexpected repairs

Insurance  

  -Life Insurance

  -Health Insurance

  -Homeowners/Renters 

  -Auto Insurance

  -Disability Insurance

  -Identity Theft

  -Long-Term Care

Personal  

  -Child Care/Sitter

  -Toiletries

    -Shampoo/Conditioner

    -Feminine Products

    -Soaps

    -Toilet Paper

    -Toothpaste/Toothbrushes

  Cosmetics/Hair Care

    -Make up

    -Salon visits

  -Education/Tuition

    -Kids in K-12

        -Fund Raisers

        -School supplies

  -Books/Supplies

  -Child Support

  -Alimony

  -Subscriptions

  -Organization Dues

  -Gifts (including Christmas)

  -Replacement Furniture

  -Pocket Money (His and Hers)

  -Baby Supplies

    -Diapering Needs

    -Formula

    -Baby Food

    -Bottles/Binkies

  -Pet Supplies

    -Pet Food

    -Veterinary Care

    -Toys/Collars/Beds

  -Music/Technology

  -Miscellaneous

Clothing  

  -Adults

  -Children

  -Cleaning/Laundry

Recreation  

  -Entertainment

    -Hulu, Netflix, Xbox subscriptions

    -Going out to the movies

    -Going to the amusement park, fair, etc. 

  -Vacation

Debts  

  -Car Payments

  -Credit Cards

  -Student Loans

  -Personal Loans

  -Money owed to family/friends

Saving 

  -Emergency Fund

  -Retirement Fund

  -College Fund

  -Pay cash for a car fund???

Digital Budgeting - Lesson 1

If you are searching for budgeting ideas you are probably already familiar with Dave Ramsey's advice.  Live within your means, create a budget, pay off your debt, blah, blah, blah.  Right?

I have been very interested in the envelope method but I didn't know if I could set up a budget without upsetting the fragile ecosystem that I call home.  I could just use the Ramsey worksheet and base my budget off our income, however, maybe our wants and needs are different from his ideas.  The Ramsey idea is a good place to start.  Don't get me wrong, it's a good idea but it could get really confusing when you get the the envelops and actually start employing them in real life.  Besides, we haven't been on a cash only basis in like...ever.  We use debit and credit cards in our house with minimal cash use.  After all, it is the digital age.

Oh no, you have credit cards, you say?  *GASP* Yes, we use credit cards...responsibly.  Since we pay off our credit cards every month our credit score continues to increase and we don't pay interest on them.  There have been a few times that I've held a credit card balance over a month or two but major events have happened.  Like, we moved across the country and were waiting for reimbursements. I've seen a few posts about opening numerous checking accounts and using the debit cards as virtual envelops but that can get just as confusing.  Not to mention the fact that my wallet doesn't have that many card slots.

So, what ever do I do?  I use Mint.com and Dave Ramsey's budget guidelines.  Mint takes a little bit of effort to set up.  You also have to be a little trusting in the internet.  I can assure you that your password secrets are safe with Mint.com.

Before we go on, I'd like you to head on over to Mint.com and get yourself all set up.  Just get your accounts set up and we'll talk about how to really put it to work in a later lesson.