Juggling multiple accounts for banking, credit cards and investments can be a challenge. Maybe you've tried to build your own elaborate filing system, or used a software program to track your money.
If you're willing to put your personal financial information in a web-based program, Mint.com allows you to track all your accounts in one place – and it does it for free.
Mint.com launched in 2007 and in 2009 was bought by Intuit (INTU), the makers of TurboTax and Quicken.
Initially, there was skepticism about the security of personal financial information being shared online; those concerns have largely subsided. Mint.com now has 10 million users, has collected several Webby Awards, and was recognized by Time Magazine as one of the Top 50 Web Sites three years in a row. Other online personal finance options are LearnVest.com and Personal Capital.com. (See also Investopedia's financial tools for retirement, investment and personal finance.)
How It Works
To get started, enter user names and passwords for each of your accounts: checking, savings, investment, credit card, etc. Mint.com automatically pulls all the information into its online program, displaying it in one format. The site is easy to navigate and there are video tutorials to walk you through the features.
What It Can Do
It can be a useful budgeting tool. Once you've set spending categories and limits, Mint.com will track your spending patterns. Each time you sign on, your financial data is updated.
It gives a snapshot of your personal cash flow in a way that is completely impossible if you just try to remember what you spend, says Lynnette Khalfani-Cox, a personal finance expert and author of several books, including her New York Times bestseller Zero Debt.
You can set up email alerts to let you know if you've gone over your budget in a certain category and to remind you of upcoming bills. Mint.com provides weekly summaries of your finances and allows you to view and monitor your credit score at a glance. There's also a mobile app allowing you to receive information on the go.
In a busy household, where you are juggling accounts, it's sort of like an extra set of eyes, says Cox. You don't want to get dinged with late payments.
Mint.com can help users set savings goals for short-term items, such as vacations, or something long-term, such as retirement. Common goals – getting out of debt, buying a home, saving for college – can be customized; you'll then receive tips on how to achieve them with built-in calculators. (To find out how to make the most of your savings, see Get The Best Savings Interest Rates For You.)
In exchange for its free service, Mint.com has very targeted advertising. The site might suggest the best kinds of accounts for retirement savings or credit cards with low interest rates based on your personal information.
Moving away from black-and-white spreadsheets, Mint.com creates colorful bar graphs and pie charts to reflect your money habits.
It can also be a helpful way to uncover fraud. Since all your accounts are displayed in one place, it's easy to check for unusual activity and respond quickly.
What It Can't Do
It's not a banking site – so if you want to move money around or pay bills, you need to sign off Mint.com and manage your money directly on your banking site.
You also can't search for a certain transaction easily by date or business. Unlike signing on to your credit card account or bank statement, Mint.com is not set up to quickly look for records of a specific purchase.
And it does not provide in-depth investment analysis; rather, it is a basic way to follow the movement of your money in various accounts.
Mint.com company officials say it uses bank-grade security and have gone to great lengths to assure users about the safety of using the site – but nobody can offer a 100% guarantee against misuse of your financial information.
Cox, for one, says she's not concerned. We are all living in a world where hackers are, unfortunately, often one step ahead, she said. I have an extremely high degree of confidence that Mint.com is doing their best, and the site is safe and secure.
The Bottom Line
For people looking for a way to be more organized with finances, Mint.com can be a good avenue to track all accounts in one place. It's free and user-friendly. But as with anything online and automatic, using this kind of service entails some risk of putting your finances on autopilot. You still need to review your financial picture regularly and consider seeking professional planning advice for big financial decisions. For more on budgeting, read Investopedia's Budgeting Basics tutorial.
