The paycheck to paycheck merry-go-round is a soul sucking ride that leaves most people feeling like this when it comes to their money.
So, how to get off? The B word. That's right a budget, spending plan, or what ever you want to call it that does not give you hives. A plan for your money, so you can see where it goes. Before you stop reading know that I understand that accidents, unexpected illness, medical emergencies, veterinary emergencies, and other acts of nature can shoot the best made budget out of the sky. How do you try to get out of a deep hole of debt? Here are seven tips to get started:
1. Stop. Just stop and gather all of your financial documents in one place. Figure out where you are. The library is full of books that will show you how to budget. Turn off the TV, shut down Facebook or Twitter, get off Pinterest and take an evening and sit down with your partner and lay it all out. Do it together. If you are worried about having the conversation or talking about money with your partner, read my post here for tips on how to talk about money.
2. Commitment to improving your financial situation. Forgetfulness, procrastination, impulse spending, late payments, and general inattention cause problems with money management. Folks with ADHD/ADD struggle with all of the above. I once found a tax return that I was supposed to mail in my raincoat pocket two years after I was supposed to mail it. Why? Because in the two block walk to the post office on my way to work, I forgot to mail the tax return. Set up systems to help you keep your commitment and remember important financial dates.
3. Understand that there is a difference between being underwater because of poor money management, and catastrophic / unplanned life events. Do not see your situation as a symptom of poor character development.
4. Spending to save money is not saving at all. Too many people have bought into the whole coupons-stockpiling madness. Having thousands of dollars of food and household products in storage that rot before you use them is a waste of time and money. Yes, you can save money by stocking up when things are on sale and you have a coupon but only buy what you need/will eat, and enough to last until the next sale.
5. Figure out if you have an outgo or income problem. Do you not make enough to cover your basic expenses? If you can not afford food, housing, utilities, transportation, and medication costs on your income you have an income problem. Do you spend more than you make on non-essentials? That is an outgo problem. No blaming here, just figure out what you need to work on, or if you need to work on both.
6. Take advantage of free resources to get help. The library is a great place to start. There are many free on line money management tools also. Check them out. Mint is a great place to start, and no they do not pay me to say that.
7. Getting out of debt is like losing weight, we all know that we should, how is the problem. Everyone needs to find ways that work for them, there is no one way. The keys for ADD/ADHD individuals is that the system needs to be simple, easy to remember, and automated as much as possible. Complicated systems that require large investments of time will be difficult for most people but for those of us with the attention span of a goldfish they are impossible.
Find a way to start your journey towards a place of calmness with your money. Financial stress can kill relationships and contribute to depression. Start where you are, be kind yourself, and believe that you can get off the merry-go-round.
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