How to Budget with - Full Tutorial

Phil Ebiner
A free video tutorial from Phil Ebiner
Top-Rated Instructor, 2 Million+ Students
4.5 instructor rating • 128 courses • 2,013,644 students

Lecture description

In this lecture of the Personal Finance Masterclass, you'll learn how to do your budget with We'll show you how to create categories and set prices for your categories You'll then learn how to put each of your transactions into the right category and see your monthly budget.

Learn more from the full course

Personal Finance Masterclass - Easy Guide to Better Finances

Your complete personal finance guide to understanding finances. Save more, invest smarter, reduce loans, retire earlier!

07:09:20 of on-demand video • Updated January 2018

  • You'll be the master of your own finances.
  • You'll know how to create a smart budget that helps you increase savings and reduce expenses.
  • You'll increase your income with a promotion, new job, side hustle, and online income.
  • You'll have a step-by-step process for reducing your loan and/or credit card debt.
  • You'll know the process for buying a house and saving up for a down payment.
  • You'll know how retirement works, how to save and invest for retirement, and how much you'll need to save and invest for a worry-free retirement.
  • You'll learn how to retire early and achieve financial freedom!
English [Auto] Everyone in this tutorial I'm going to be showing you how to create a budget on mint when you sign up for it. You're going to first have to connect one of your accounts or all of your accounts to mint so that I can see all of your transactions which then fall into different categories in your budget. So the first thing to do is on the left hand side you have your accounts and what you're going to do is click this at it and then go to an account. Now for this example I've just set up a temporary mint account and added our city doubled cash card which is a great 2 percent cashback card that we use and that has transactions for most of our purchases. When you log on to your mint account for the first time you're actually going to have a temporary budget that Mitt has set up for you. It includes things like automobile food fast food groceries. I've already added those from my budget because I'm going to start from scratch using my own categories to get rid of those you're going to have to click at it. And then there's a button for deleting those categories and do that to all of the categories in your budget and start from scratch. So starting from scratch we're going to click Create a budget. Now my wife and I have a variety of categories that I will be plugging in and creating a budget for in this tutorial. They're the ones that we use that work for us. But of course you might want to do your own and use your own categories. Feel free to do that depending on what you think is important what deserves to have a category in your budget. But make sure that you create categories that everything in your life every transaction can be accounted for because basically what we want to do with this budget is at the end of the month see that all of our transactions fall into some sort of category. And that way we can tell month after month what we're spending our money on. And there's no transactions that are kind of falling through the cracks. So to choose the categories that you want in your budget you will click in this little box and start typing the category title. So there's some that we will have to create for our self which I'll go into in a moment when we need to do that. But for now I'm just going to create the ones that Mitt has already created. So we have one for our housing. Our rent. We pay rent for you you might want to do one for your mortgage if you own a house. We separate this from our utilities which we have a separate budget for so for us we're just going to use the mortgage and rent category and to see which categories it already has. You can click this see all categories and then you have this dropdown. You have all these super categories on the left. Then hovering over the super categories you have the subcategories. So under home you have a mortgage and rent category already for us. We're going to select that as one of our categories and we pay about $1500. Actually we do pay $800 for rent every month living in So Cal. So you choose your amount that you expect to pay every month. And that's something you're going to have to decide how much is it going to be for rent or mortgage. You typically know exactly how much it will be. But for things like food or extra expenses utilities personal budget health expenses those might be things you have to look back on your previous few months of transactions and kind of see how much you spend each month. Set your budget see how it goes for a few months and you might have to adjust. And then there's a couple more things that you want to do. You have to choose when will this happen. Typically you want to do every month because that's what we're looking at a monthly budget. You could also do it every few months budget. Say there's something like insurance or loans or something that you pay not every month at the same time or utilities some utilities are like that you could do one every few months and then you choose however many months this happens so maybe you need a budget for insurance which you pay once a year. So you would say I spend $1000 every 12 months. The other kind is a one time budget. So if you have a vacation that you're going on and you want to have all the travel expenses go into that one time expense or a birthday or Christmas or holiday gifts you might want to create one time budgets for that specific thing each year so that you can categorize things in that budget and they don't. You don't just lump your vacation travel fare into your personal budget if you don't want to do that. So for us we're just going to say every month and then the last thing is to start each new month with the previous month's leftover amount. This is if you want to roll over the balance whether it's positive or negative This might make more sense for something like restaurants say you have a $200 restaurant budget every month. If you spend $150 and you check this box that means that the next month's you'll have actually $250 to spend. Or it will show that you have $250 to spend. But in one month if you spend $300 the next month it will show you have only one hundred dollars to spend. OK. So that's all the stuff that you need to know about creating a budget. So I'm just going to go through quickly and create budgets for each of our categories. We have mortgage and rent. After that we have utilities. So they already have a utilities category. But let's see where that lands because they have a utilities under bills and utilities so that's good or if you wanted to put it under home you could. So say I want to put under home I can create a new category by selecting add new category. Over here I can say ad category and maybe I'll choose home utilities and they already have these sort of preset new categories that you can add if you want based off of what other people have added to their budgets. So I'll say save I'll say I'm done. And now we have home utilities in there and our home utilities are about $150 a month. So this includes electric gas trash water all of those things that are every month or every other month we pay. So we'll say save the next one we have auto. So if we click this little button right there on the right with the two arrows we can see all of our categories and we're just going to do an auto and transport. And so everything from gas fuel parking. If we do have service or parts anything done on our cars it goes under auto and transport and we do this at $200 a month. Now I'm just going to go through quickly the rest of our budgets. OK. So we've added a bunch of categories already. I'm just going to walk through a couple of more that we've created that really have helped us. And what we call these are personal shared personal feel for me and personal Isabel. And so these are new unique categories to us. We put them under personal care you can put them under wherever really this could be under miscellaneous expenses but we put them under personal care. So I'm going to create a new category for personal fill personal Izabel and personal shared and why we created these categories is because while you could go in and categorize every single thing every single expense of yours something different gift something for the kids something for the pets something just some general shopping books clothing hobbies. You see they have so many categories. Everything you could imagine. It's a little bit overwhelming and for us we just want to lump everything together. So for our personal shared account we start the month with 200 extra dollars. And this is where we put basically anything you get at the store that we would use together. So cleaning supplies or if there's a birthday party and we have to get a gift we'll put it in personal share because it's not necessarily my expenses not necessarily Isabels expense. It's our expenses as a couple. And so we have this personal shared category. And then on top of that we each have our own personal budget so these are great because these are budget that we each have and we each use for our own expenses and we don't necessarily have to worry about asking each other if we should spend money or buy things because we know that we have a certain amount of money allotted to us each month. Now this can go up or down depending on how much you want to allow yourself each month. But for example things that I've spent money on in the past few months with this are like new guitar strings or tickets to a baseball game. So these are the categories that we have come up with. And you can see here you can easily increase and decrease the budgets by hovering over and clicking left or right or you can edit the details and you get back to this page but you'll notice that while we have this some of our budgets have already been filled in health and fitness restaurants is the star of the month so we haven't spent that much money. But you notice that under here we have this everything else and this shows that there's a lot of stuff that hasn't been categorized yet. So we have to go back to our transactions and actually categorize everything. So to do that we click on those transactions tab up here and this shows us all of our transactions that we've made with our credit card. So to change the category you have to go to this category tab and change it. So for example I just went to the doctor. So this is going to be I'm just going to put this under health and fitness. I could put it under doctor but I'm just going to change it to health and fitness because anything under this will show up in the health and fitness category that we've added to our budget. But I just like to make it match the categories of our budget. CBS for example this was a personal shared big fight. This is something that I purchased. I got myself a new hiking backpack so this was a personal fill object. Sam's Club says we bought gas at Sam's Club. So sometimes mint tries to categorize based off of what the store name is and so it kind of learns as you go along. It becomes intuitive with your purchases. But for some reason it always gets Sam's Club wrong which is makes sense to me because it's not necessarily for gas so under auto and transport Well we just put it under auto and transport cars. That's gas. So after I've categorized all of the transactions for this month and go back to my budget page you can see how much I've spent in each of these categories and transport for example I spent $51. So it's nice and easy to see where we are once I start spending more money in these categories. This bar turns yellow and red as we get closer or go over and then down below you notice that there's no longer the little thing that's shows everything else. I've categorize everything that we've spent money on this month and this is how we've spent money this month so far. So we're in good shape. We've got a few more weeks to go and a lot of expenses like utilities or mortgage and rent those come later in the month. But in general this is how we do it. Again I want to stress that you will probably want to customize this for yourself. There might be some sort of things that you want to add to your budget. Maybe you do want an entertainment budget or maybe you do want to separate your fast food from your formal dining restaurants because for us we just lump everything together in terms of eating out. But maybe you do want to separate those kinds of things. But it's really up to you. I think the main takeaway is that you want to make sure that you have categories for everything you potentially could spend month money on in a typical month. Of course I mentioned things like maybe there's things like Christmas gifts like come once a year or vacations that you want to create a separate budget for that month. But for your month of month transactions and purchases make sure you have categories for everything. That's why we created the personal shared category. It really helps to dump everything in there that doesn't fit in other categories. And that really works for us can be fun to look at your budget every month. It's simple and easy to do and hopefully I've made it a little bit more clear on how to create a budget on mint how to categorize things how to recategorize things that weren't categorized properly and then how to look back at your budgets afterwards to see if you went over or under. Thanks so much for watching and we'll see you in another video.