It is a well known fact that many high schools and colleges in the U.S. today do not have high rankings for their teachings on personal finance. While you may be able to learn how to balance business books and solve for the variable “x,” balancing a personal checkbook is a completely different matter.
It is for this reason that websites such as Mint.com have become so popular over the years. In fact, many of those who are seeking to keep better track of their personal finances have turned to such sites in hopes of coordinating their assets and liabilities in a more efficient manner.
Those who have a good handle on all aspects of their personal finances typically find more success in life. For one reason, they are better able to keep track of – and therefore eliminate – unnecessary spending. This, in turn, can help to add more into a savings account for the future.
Change Your Finances and Change Your Life
Just some of the many ways that using Mint.com can change your life include:
Categorize Financial Data
Similar to picking up piles of laundry around the house, a better organized financial picture can help you to stay more organized overall. By using the unique system of financial categorizing provided by Mint.com, you will be able to obtain a clear view of your total financial picture. This can essentially help you in creating a “blueprint” for your financial future.
Keep Track of Expenses and Loan Balances That Are Due
Mint.com includes a space for users to add their information regarding expenses and loan balances. By keeping all balance information, along with the needed amount of principal and interest that will be required to pay off such debts, you will feel much more in control of the liability side of your personal balance sheet.
Manage Income and Outgo
Although it is said that a personal budget can help individuals and families to better manage their overall financial picture, there are few who actually take part in following – or even creating – a budget. However, by including all of your figures for incoming and outgoing cash on Mint.com, the site can come up with a budget for you – and make it easy to stick to as well.
See Where Your Money is REALLY Going Every Month
After developing a budget, Mint.com can also help you to see just exactly where every dollar goes each month. This can be a real eye-opening experience for many people – as the daily coffee, newspaper, or candy bar can cost you a great deal of cash over time.
Find Additional Funds for Saving
Once you have seen exactly where your funds are going, Mint.com will take it a step further by helping you to find savings that you may not have otherwise known that you had. For instance, if you just stop buying that soda each day and instead saved the $1, over the years – in combination with compounded interest growth – your “soda money” can turn into hundreds or even thousands of dollars that you can put towards your future retirement savings.
Protect Your Credit Score
One of the most important “report cards” that you will ever have is that of your credit score. In fact, a good high credit score can be your best friend in terms of being approved for loans and other types of credit. On the other hand, a low or poor credit score can likewise be your worst enemy. Those who have low credit scores are typically charged more in loan and credit card interest, as they are considered to be a higher repayment risk to the lender.
Over time, even just an extra ½ or ¼ percent in loan interest can really add up. And these extra dollars could otherwise be put towards a savings program. In addition to helping you understand and improve your credit score, Mint.com will also track it – letting your know about any type of unusual charges that may have been made without your knowledge.
By stopping fraudulent behavior on your financial accounts, you could save countless hours and frustration that would have been spent if you had not been able to stop an identity thief or other type of negative financial incident.
Overall, users of Mint.com have been able to change their financial picture – and their lives – by getting a better handle on their income, outgo, assets, and liabilities. The site has also been able to work its financial magic in a very efficient and time saving manner for its members.
George Gallagher writes about personal finance, education, and student loans. When not contibuting to popular blogs he likes to read and mountain climb.