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Managing Financial Stress with ADHD: Breaking Large Tasks into Smaller Steps for Better Management

Valiant Minds Counseling, LLC
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The state of the economy can be a source of great concern and stress for many individuals. The uncertainty and unpredictability of the financial markets can make it difficult for people to plan for the future and feel secure in their financial situation. The rising cost of food in America is a growing concern for many households, especially for those on a tight budget. The average income of the American worker has not kept pace with the increasing cost of living, making it difficult for many families to afford basic necessities like food. In recent years, food prices have been rising at a faster rate than inflation, making it more difficult for low-income families to afford a healthy diet. This can lead to financial strain and stress, as well as food insecurity, which can have negative consequences for both physical and mental health.

It’s important to remember that financial stress is a common experience and that you are not alone in feeling this way. Many people are facing similar challenges and are struggling to make ends meet. Financial stress can contribute to feelings of anxiety and depression, as well as difficulty in sleeping, which can be further exacerbated for individuals with ADHD.

To help manage the emotional and psychological impact of financial stress,  leading financial advisors and experts state that  it’s important to develop healthy habits that can help reduce worry and anxiety. Some strategies that may be helpful include:

  1. Creating a budget: Having a clear understanding of your income and expenses can help you feel more in control of your financial situation and reduce feelings of uncertainty.
  2. Prioritizing self-care: Taking care of your physical and emotional well-being can help you cope with stress and anxiety. This can include things like exercise, meditation, and connecting with friends and family.
  3. Setting realistic financial goals: Setting realistic financial goals can help you feel a sense of accomplishment and purpose, which can help to counteract feelings of worry and anxiety.
  4. Building an emergency fund: Having a cushion of savings can help you feel more secure in the event of unexpected expenses or job loss.

However, for individuals with ADHD applying the above strategies can be difficult to put into action.   Individuals with ADHD can face unique challenges when it comes to budgeting, saving money, and prioritizing their finances. ADHD can affect a person’s ability to focus, stay organized, and follow through on tasks, which can make it difficult to manage finances effectively. The rising cost of food can be particularly challenging. ADHD can affect a person’s ability to budget and manage money effectively, which can make it difficult to afford a healthy diet. Additionally, the impulsivity and distractibility that can be associated with ADHD can make it difficult to plan ahead and make healthy food choices.

The financial strain caused by the rising cost of food can also take a toll on a person’s mental health. Financial stress can contribute to feelings of anxiety and depression, as well as difficulty in sleeping, which can be further exacerbated for individuals with ADHD. Additionally, food insecurity can lead to poor nutrition, which can also have negative effects on mental health.

Creating and sticking to a savings plan can also be challenging for individuals with ADHD. Due to difficulty in planning and prioritizing, it may be hard for someone with ADHD to set aside money for savings. Additionally, people with ADHD may have trouble with delayed gratification, which can make it hard for them to save money for the long-term.

Prioritizing expenses is another challenge for people with ADHD. Due to distractibility and impulsivity, it can be difficult for them to focus on the most important financial tasks and make sure they are taken care of. This can lead to missed payments, late fees, and other financial problems.

Despite these challenges, individuals with ADHD can take steps to better manage their finances and reduce financial stress. Here are a few tips:

  1. Use reminders and alarms:
    1. Here are a few ways that someone with ADHD can use reminders to manage their finances:
      • Set reminders for bills and payments: Use a calendar or reminder app to set reminders for when bills are due. This can help ensure that bills are paid on time and avoid late fees.
      • Use reminders to track expenses: Use a reminder app or spreadsheet to keep track of expenses as they occur. This can help you stay on top of your spending and ensure that you stay within budget. Many online banking accounts offer helpful tools to better track your spending. Additionally, there are some helpful apps such as Prism or Mint that organize all of your bills into one place. The app can send you reminders when bills are due.
      • Use reminders to save money: Set reminders to transfer money into a savings account or to make contributions to a retirement account. This can help you stay on track with your savings goals. In some online banking accounts, you can have your funds automatically set to distribute funds into your savings account.
      • Use reminders to check bank balances: Set reminders to check your bank account balance regularly. This can help you stay aware of your spending and avoid over-drafting your account. Setting up notifications or text alerts can be especially helpful. Additionally, some online banking programs offer overdraft protection or low cash mode, which can help you avoid unnecessary and costly fees. Low cash mode can send you reminders that your account has limited funds and can help you to reduce spending.
      • Use reminders to review your budget: Set a reminder to review your budget on a regular basis. This can help you stay on track with your spending and make adjustments as needed.
  2. Break down tasks into smaller steps:
    • Breaking larger financial tasks into smaller, more manageable steps can be helpful for individuals with ADHD, as it can make the task feel less overwhelming and easier to accomplish. Here are a few examples of how a person with ADHD can break larger financial tasks into smaller steps:
      1. Budgeting: Instead of creating an entire budget all at once, break the task into smaller steps. Start by listing all of your income sources, then list all of your expenses. Next, categorize your expenses and set a spending limit for each category. Finally, review your budget regularly to make sure you’re sticking to it.
      2. Saving money: Setting a savings goal can be overwhelming, so break it down into smaller, more manageable steps. Start by saving a small amount each week, then gradually increase the amount as you become more comfortable with the process. Another approach could be to set a savings goal for a specific purchase, such as a vacation or a down payment on a house.
      3. Paying off debt: Paying off debt can be a daunting task, but it can be broken down into smaller, more manageable steps. Start by creating a list of all your debts and prioritize them by interest rate. Next, make a plan to pay off the debt with the highest interest rate first. Once that debt is paid off, move on to the next one.
      4. Track expenses: Instead of tracking all expenses at once, break it down into smaller steps. Start by tracking expenses for a specific category, such as groceries or transportation, for a week. Once you have a good understanding of where your money is going, you can expand to other categories.
      5. Creating a financial plan: Creating a financial plan can be overwhelming, so break it down into smaller, more manageable steps. Start by identifying your short-term and long-term financial goals, then create a plan for how to achieve them. Next, set deadlines for when you want to achieve each goal, and break them down into smaller steps. Finally, track your progress and adjust your plan as needed.

      Breaking larger financial tasks into smaller, more manageable steps can be a helpful strategy for individuals with ADHD. It can also be helpful to pair this with a support system or accountability partner, to help keep on track and make sure that the plan is followed through. Remember that taking small steps towards a larger goal is better than not taking any steps at all.

  3. Find an accountability partner:
    • An accountability partner is someone who helps an individual with ADHD stay on track with their goals and tasks, particularly when it comes to financial management. An accountability partner can provide support, encouragement, and motivation to help the individual stay focused and on track.An accountability partner can be a friend, family member, or professional who can help the individual with ADHD create a budget, track expenses, and save money. They can help the individual set goals, create a plan of action, and hold them accountable for staying on track. They can also help the individual with ADHD to establish a routine, set reminders and make sure they follow through on their plans.An accountability partner can also help the individual with ADHD to identify and overcome any obstacles that may be preventing them from achieving their financial goals. They can provide a sounding board for the individual’s ideas, and offer constructive feedback and suggestions.Additionally, having an accountability partner can also help to reduce stress and anxiety associated with financial management for individuals with ADHD, as they can provide emotional support and a sense of accountability.It’s important to note that the accountability partner should be someone who is supportive and non-judgmental, who can understand the unique challenges that people with ADHD may face when it comes to financial management.
  4. Use apps and tools:
    1. There are many apps and tools available to help individuals budget, track expenses, and save money. Some popular options include:
      • Mint: This free app allows you to connect all of your bank accounts, credit cards, and investments in one place. It will automatically track your spending and create a budget for you.
      • EveryDollar: This budgeting app allows you to create a budget and track your expenses in real-time. It is available for both iOS and Android devices.
      • PocketGuard: This app helps you to track your income and expenses, see your account balances, and create a personalized budget plan.
      • YNAB (You Need a Budget): This budgeting app helps you to create a budget, track your expenses, and reach your financial goals. It is available for both iOS and Android devices.
      • Wally: This app helps you to track your expenses, create a budget, and see where your money is going. It is available for both iOS and Android devices.
      • Spendee: This app allows you to track your expenses, set budgets and financial goals, and see where your money is going. It is available for both iOS and Android devices.
      • BillGuard: This app helps you to track your bills, set reminders for when bills are due, and see where your money is going.
      • Acorns: This app rounds up your purchases to the nearest dollar and invests the difference into a diversified portfolio of low-cost exchange-traded funds (ETFs).

      These are just a few examples of the many apps and tools available to help individuals budget, track expenses, and save money. It’s important to find the one that works best for you and your needs. Some apps offer more features than others, and some are better suited for certain types of expenses. It’s worth to try a few to find the one that you feel most comfortable with.

  5. Get professional help: A financial advisor or therapist can provide guidance and support in developing strategies to help manage financial stress. It is okay to seek help where help is needed. Getting help and support with book keeping or keeping up with a budget can be tremendously helpful.

It’s important to remember that everyone has their own unique set of challenges, and that individuals with ADHD have the ability to manage their finances and reduce financial stress with the right strategies and support. With the right tools and support, individuals with ADHD can successfully budget, save, and prioritize their finances.