What is a “Financial Nut”?

Has anyone you know ever mentioned “financial nut” in a conversation?  Has anyone asked you what you need as your “nut” to live comfortably?

I am a retired professional and I was asked this question about two years ago by someone who was much younger than myself and interested in having me join him to open up a deli shop.  The questioning look on my face was a clue to him so he explained the term further.

So –

What is a “Financial Nut”?

It is actually defined by InvestorWords.com.

“A slang term referring to the carrying charge on a property; the monthly expenses that must be overcome by income in order to maintain a positive cash flow.”

In other words – how much income do you have for the essentials so you do not go negative in your cash flow?  How much do you need for housing costs to afford to live where you now live?  How much do you need for food, clothes, entertainment, internet, phone, etc?  You get the picture.  If you take your personal budget and break it down into manageable segments – those segments are called “nuts” and the sizes of those “nuts” can be managed.

If you have a budget for your car(s) then that will be your “nut” for that.  If your income is less than your “nut” something needs to be adjusted.  Maybe a bus pass or a bicycle or walk to where you need to go, etc.

If your income is less than that required for your food “nut”, adjust.  Cooking instead of eating out, use grocery coupons more, buy bulk, etc.

Good news is that you can manage each of your “nuts” to make your overall budget work for you.


About Gary

I am retired, but not tired. I still want to be valuable to others. I know that others are valuable to me. After looking back on six decades, I have asked myself this question: “What do I believe?” My mind filled up. My heart started beating faster. My spirit soared. I post blogs to share what my mind is working on, what my heart believes would help others and, what my spirit is communicating to me. What do I believe, you ask? Decisions dictate your path In love, not hate In tolerance, not prejudice In health, not sickness In wealth, not poverty In kindness, rudeness In happiness, not sadness In encouragement, not discouragement In faith, not doubt In courage, not fear I have been and will be challenged in each one of these beliefs, but the biggest belief is to stay positive and not turn negative. This belief helps me maintain all of the others.

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