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The Collapse of the Budgeting App
Mint is the OG budgeting app that's been helping people manage their money for a while now.
Mint was born in 2006, founded by Aaron Patzer. The guy was just like many of us, tired of the hassle of managing his finances. He wanted an easier way to keep tabs on his spending, bills, and savings. So, he came up with this brilliant idea of creating an app that could do all the heavy lifting for him.
Mint started as a web-based platform, and it made quite a splash. It was like magic – you'd link your bank accounts, credit cards, and other financial info, and Mint would automatically categorize your spending. It gave you these nifty pie charts and graphs that showed you exactly where your money was disappearing to – rent, groceries, Starbucks runs, you name it.
But Mint's real claim to fame was its budgeting feature. You could set up budgets for different categories, and Mint would send you alerts when you were about to go overboard. No more nasty surprises at the end of the month!
Intuit, the company behind big names like QuickBooks and TurboTax, saw the potential and decided to acquire Mint in 2009 for a cool $170 million. The rest, as they say, is history.
Mint has since evolved and expanded. It's available as a mobile app, making it even easier to track your spending on the go. Plus, it added features like credit score tracking and investment tracking. So, it's not just about budgeting anymore; it's about managing your entire financial life.
These days, Intuit announced the Mint app is being closed as Intuit looks to transfer customers to their higher profit-driving product, Credit Karma.
Consumer debt has reached worrying levels in recent months, with U.S. credit card balances rising to more than $1 trillion, the Federal Reserve Bank of New York reported in August, before student loan payments resumed. Credit card balances, the most prevalent type of household debt, were more than 16 percent higher in the second quarter of this year compared with the same period in 2022. - NYTimes
Why Budgeting Is The Foundation
Budgeting – it's like the GPS for your money, and here's why it's so darn important.
First off, think about it this way: your money is like a mischievous toddler. If you don't keep an eye on it, it'll run off and do who knows what. Budgeting is your way of being the responsible adult and telling your money where it should go.
Budgeting helps you avoid the financial chaos. Without a budget, you're just blindly swiping your credit card, throwing cash around, and hoping for the best. But with a budget, you're like, "Okay, I've got $X for rent, $Y for groceries, and $Z for that awesome concert next month." You're in control.
It's also a reality check. Ever wonder why your bank account looks like it's been on a diet while your debt is on a fast food binge? Budgeting shows you where your money is actually going. And sometimes, that eye-opening experience is enough to make you rethink your spending habits.
Budgeting is your secret weapon against debt. When you've got a budget, you're less likely to get into the black hole of credit card debt. You'll have a plan to pay off those bills, and that's a game-changer.
It's not just about scrimping and saving, though. A budget can also help you achieve your financial goals. Want to take that dream vacation, buy a fancy gadget, or save for retirement? A budget will help you allocate money toward those dreams.
Oh, and emergencies? Budgeting's got your back. An emergency fund is like the superhero of financial planning. When life throws a curveball – your car breaks down, your roof starts leaking, or your pet iguana needs an emergency spa day – your emergency fund is there to save the day.
So, in a nutshell, budgeting isn't about restricting your life. It's about giving you control, helping you reach your goals, and keeping your finances on the straight and narrow. It's like a financial gym for your money – it keeps it in shape and ready for whatever life throws at you. So, give it a shot, and watch your money grow and your financial worries shrink.
How to Better Your Budget
Know Your Income: First, figure out how much money you're bringing in. This includes your salary, any side hustles, or any cash your grandma slips into your birthday card.
List Your Expenses: Make a list of all your regular expenses, like rent or mortgage, groceries, utilities, and any bills. Be thorough. Don't forget that daily coffee fix or Netflix subscription.
Categorize Your Spending: Sort your expenses into categories like housing, food, transportation, entertainment, and so on. It makes things easier to track.
Set Your Priorities: Decide what's most important to you. Maybe it's saving for a vacation, paying off student loans, or just having some extra cash for fun stuff. Whatever it is, prioritize it.
Create a Budget: Now comes the fun part. You're gonna assign a specific amount of money to each category. Start with the essentials, like rent and groceries. Then divvy up the rest. Be realistic – it's okay to treat yourself, but don't go overboard.
Track Your Spending: Keep an eye on where your money is going. There are tons of apps like Mint, YNAB, or even just old-school pen and paper to help with this. Update your budget regularly to see how you're doing.
Cut the Fluff: If you notice you're spending more than you planned in one category (looking at you, impulse shopping), it's time to cut back. Maybe eat out less or cancel that gym membership you never use.
Emergency Fund: Don't forget to allocate some money to an emergency fund. Life happens, and having a safety net is a lifesaver.
Stick to It: The most important step – actually follow your budget. It's not just a piece of paper (or an app), it's your financial guide. Stay disciplined, but don't beat yourself up if you slip up occasionally. It happens to the best of us.
Review and Adjust: Every few months, take a look at your budget. See what's working and what's not. Maybe you got a raise, or your expenses changed. Adjust your budget accordingly.
Resources for Budgeting
My personal, favorite resource? Excel.
You should see my expense tracker. It’s a Google spreadsheet of everything I buy from groceries to concert tickets. From there, I calculate the price-per-unit which tells me information like inflation within my area and the best stores to shop at.
There’s also the prehistoric way of writing all your expenses down which absolutely works for some people! I can safely say that it doesn’t work for me.
Lastly, we’ve come full circle to budgeting apps. I’m personally a fan of budgeting apps as they’re tracking your expenses as you go. For myself, the only downside is that sometimes I forget to check the app because it physically brings me pain to see these numbers all at once.
Here’s a list of a few budgeting apps to try (now that Mint is disappearing). As I am personally not promoting any one of these apps, I’ll let you discern which app is best for your needs.
YNAB (You Need A Budget): YNAB is all about giving every dollar a job. It helps you allocate your money to specific categories and provides tools to get out of debt and save for the future. It's a paid service but offers a free trial.
Personal Capital: Personal Capital is a budgeting and investment tracking app that also provides retirement planning and wealth management services. It's free to use and offers a comprehensive financial overview.
PocketGuard: PocketGuard simplifies budgeting by categorizing expenses and providing an overview of your financial health. It helps you set spending limits and track your bills.
EveryDollar: Created by Dave Ramsey, EveryDollar is a zero-based budgeting app. It encourages you to assign every dollar to a category, ensuring that your income equals your expenses.
Goodbudget: Goodbudget follows the envelope budgeting method. It allows you to allocate money to virtual envelopes for different spending categories and tracks your progress.
Wally: Wally is a straightforward expense tracking app that helps you understand where your money is going. It's great for those who want a simple way to track their spending.
Wallet: Wallet is an all-in-one personal finance app that includes budgeting, expense tracking, bill reminders, and a variety of financial reports. It's user-friendly and offers both free and premium versions.
Honeydue: Honeydue is designed for couples to manage their finances together. It lets you track expenses, set budgets, and sync bank accounts for a joint financial overview.
Spendee: Spendee is a visually appealing budgeting app that provides insights into your spending habits. It's available for multiple platforms and offers both free and paid versions.
Budgeting and the Holidays
With the holidays coming up, are you ready for that budget impact? Read more on how you can manage from my 2021 Thanksgiving post.
Think of the budget this week!
Jordan