Money management can be one of the biggest challenges for people with ADHD. The strengths of ADHD don’t play to budgeting, pay bills on time, or resisting the latest gadget you need to have, but it is not impossible to get a handle on it. People with ADHD are more likely to have more debt, live in chronic debt, or argue with their partner about money. Anxiety and depression about money and debt can take its toll on mental health, physical health, and relationship. Participantly now that many of us are distanced from one another and stressed about life in general.
Tips for overspending:
- Find a treatment that works for you. It seems simple, but there is no magic bullet. ADHD affects everyone differently. If you can think more clearly, you will make better choices.
- Cut back slowly – Cutting yourself off too strictly can backfire, sending you into an impulsive shopping spree.
- Add up your purchases before making them. Can some be delayed?
- Check your real or virtual shopping cart – Ask yourself: Do I need this? What benefit does it have to my quality of life? Why do I want this? Would I buy it if it wasn’t on sale?
- Avoid your pitfalls – some stores or websites are just too tempting.
- Unsubscribe from retail email lists
- Give yourself an allowance in cash – it is a little harder to hand over a $50 than a plastic piece (aka your credit card).
- Make to hard to spend money – leave debit and credit cards at home and only have it the amount you can afford to spend with you.
- Have someone you trust hold on to your credit card for you.
- Put a reminder (a sticker or sticky note) with your card about why you are saving.
- Pay credit cards right after using them. So you don’t carry a balance.
- Consider using a KOHO card that you fund before you spend
- Use a list and stick to it.
- Use shopping services, so you don’t impulse buy.
- Need a big purchase – plan it, save for it, talk about it with a trusted person or professional
Tips for budgeting:
ADHD strengths don’t lend themselves to creating and keeping a budget. Most people with ADHD don’t even know where their money has gone at the end of the month. You don’t need a complex system. You just need to know how much you spent on what.
- Use an app like You Need a Budget (YNAB)
- If you prefer paper – create a budget with you needs first – shelter, food- and then wants – cable. List on your fixed expenses – rent/mortgage, utilities, etc., and then your flexible costs- eating out. Is there a way to shrink the flexible spending?
Tips for the long-term plan:
- Take advantage of 401Ks from your employer
- Open your own retirement plans if your employer doesn’t offer them.
- Talk to a financial advisor.
Tips for taxes:
- Save documents you will need like medical expenses, property taxes, vehicle taxes, etc., even if they are just all in once file folder.
- If your taxes are simple, try something like TurboTax.
- If your taxes are complicated, consider hiring a professional.
Tips for financial paperwork:
- Keep and Shred – reducing the amount of paper can reduce anxiety, but some information needs to be kept in one form or another.
- Automatic payments
- Online statements
Still feel overwhelmed, find a coach or counselor that specializes in ADHD and money issues.