Of all the misconceptions about money, the most unhelpful is the idea that handling money is “common sense.” The truth is the opposite. Success with money requires learning things that make no sense (our tax code); learning things that make some sense but require guidance (how to live within your means), and learning things that are totally new like the unique language of money (“premiums,” “deductibles,” “tax credits”).
We also encourage you to practice money mindfulness.
What is money mindfulness? It’s the practice of staying alert, open, and curious while rejecting judgements and preconceived notions about money.
Let’s face it. Money can trigger upset feelings. When you add mindfulness to money, you resolve to stay centered, and to move thoughtfully forward on your money journey.
Where does this journey begin? Choose one of three starting points: the book, a seminar or this website. If you choose the website, then make sure to read the post, “Confused About Taxes.” It highlights the five taxes that shrink paychecks. Anticipating the tax bite is a key part of money management.
Next, visit “Know Your Nut.” Nut is a term for your monthly recurring expenses. Things like groceries, rent, student loan payments, and your phone plan are part of your monthly nut.
Knowing your monthly nut is essential to succeed with money. That’s why we created a simple, user-friendly program to help you calculate it. Click the “Know Your Nut” link on the homepage to view the 24 most common recurring expenses. Select the ones that apply to your situation, then click “next” to see your unique list. Add your estimate of each expense. The program tallies your responses.
Further along your money journey you can learn what really impacts a credit score, and how to avoid market bubbles like Bitcoin. You can also use our “best of the web” feature to click through to great content on other sites.
Kristen Jacks is the Founder of Money in Your Twenties. View Kristen Jacks’ bio.