Personal-finance   |   From Financial Frazzle to Financial Focus: My ADHD Budgeting Journey

From Financial Frazzle to Financial Focus: My ADHD Budgeting Journey

BUDGETING  ADHD RESOURCES  

Budgeting. Just the word can send shivers down the spine of anyone, but for those of us navigating life with ADHD, it can feel like climbing Mount Everest in flip-flops. From time blindness making deadlines a distant memory to distractibility derailing even the best intentions, managing finances with ADHD presents unique challenges. But don't worry, you're not alone, and more importantly, budgeting with ADHD is possible. This post is your guide to taming the financial chaos and creating a budget that actually works with your ADHD brain.

Embrace Visuals and Simplicity

Embracing visuals and simplicity in budgeting can be especially helpful for someone with ADHD. Since ADHD often involves difficulties with working memory and executive function. Visuals and simple systems reduce the amount of information that needs to be held in mind at once, making budgeting less overwhelming. Simplified systems and clear visuals make budgeting more accessible and less intimidating. This can encourage individuals with ADHD to engage with their finances more regularly and consistently.  

Here are some ideas for using visuals in budgeting:

• Color-Coding: Use color-coding to categorize expenses (e.g., green for needs, red for wants). This can make it easier to see where money is going at a glance.
• Charts and Graphs: Turn numbers into visuals using pie charts or bar graphs. This can be more engaging than looking at spreadsheets. As an example, make sure to categorize your spending into essentials, wants, and savings. Use your spreadsheet software to turn this into a graph. Ideally you should aim for 50% Essentials, 30% Wants, and 20% Savings.
• Keep it Visible: Place your budget where you'll see it regularly, like on a bulletin board or the fridge.

Have you already created a budget? If not, read our budgeting basics post Included in the post is a free printable to help you set up your first budge. Want a simple, editable expense tracker to get started creating your budget? Register for our Crafty Creator Club to receive a free PDF tracker.

Automate as Much as Possible

Be careful because when used incorrectly, this can also be your biggest downfall (like those 10 subscriptions you signed up for the free trial years ago, set on auto-bill, and FORGOT ABOUT). When used wisely, automation can help you track your spending, catch fraudulent purchases, and avoid late fees and missed deadlines that can lower your credit score. The moral of this one is automate any necessary bills like mortgage, internet, electric, water, credit cards, etc. If you do sign up for a free trial, immediately set a reminder (with sound) on your phone to alert you the day before the subscription auto-bills.

• Automatic Bill Payments: Set up automatic payments for recurring bills to avoid late fees and missed deadlines.
• Direct Deposit to Savings: Arrange for a portion of your paycheck to be automatically deposited into your savings account.
• Spending Alerts: Use apps that send alerts when you're nearing your spending limits in specific categories.

Address Impulsivity

Addressing impulsivity is absolutely crucial for successful budgeting since impulsivity is one of the hallmark characteristics of ADHD. This means that the urge to spend can be particularly strong and difficult to resist for someone with ADHD. It also makes it harder to think through purchases rationally and consider the long-term consequences of spending. The ADHD brain often seeks out immediate rewards and gratification. All of these things together can lead to impulsive purchases that provide a quick dopamine hit, even if they don't align with long-term financial goals.  

Here are some tips to help address impulsivity:

• 24-Hour Rule: Implement a waiting period before making non-essential purchases.
• Use Cash: For some, using cash for discretionary spending can make it more tangible and less prone to overspending.
• Pause Techniques: When the urge to spend strikes, try pausing and asking yourself if you really need the item right now.
• No-Spend Charts: Download and print a no-spend tracker and try our month long challenge.
• Limit Temptations: Remove apps from your phone that tempt you to make unnecessary purchases and unsubscribe from tempting promotional emails or to still take advantage of the coupons, tag the sender and have them go to a promotional inbox that you can review only when you are a specifically looking for that product.