How to Set Realistic Financial Goals with ADHD
Navigating financial planning can be difficult for many people, and it can be even more challenging for ADHDers. Traditional ways of budgeting and saving may not work well for the ADHD brain. That said, you can still achieve financial stability and reach your financial goals. This guide will help you grasp the connection between ADHD and personal finance with helpful strategies, tips, and resources to support you on your journey.
Key Highlights
Creating a solid financial plan can feel overwhelming, especially with ADHD. This guide offers a clear path to setting attainable financial goals.
We’ll explore common challenges, ADHD-friendly strategies, and practical tips for gaining control of your finances.
Learn how to set up a support system and discover tools and resources tailored for individuals with ADHD.
From managing impulse spending to building consistent savings habits, this comprehensive guide provides the necessary knowledge and motivation.
Real-life success stories will inspire you to take action and achieve long-term financial stability.
Setting Financial Goals with ADHD
Goal-setting can be particularly difficult with ADHD because we often perceive time differently. This may manifest as “time blindness” where we struggle to understand how much time a task will take — or how much time has passed. It can also show up with planning, as many ADHDers view time as “now” vs. “not now.” When combined with task initiation troubles and other executive function limitations, this binary approach can make it difficult to set and achieve long-term goals. Because we typically have interest-based brains, the best thing we can do for ourselves when setting financial goals is to make them authentic and interesting.
Identify Your Financial Priorities
Start by taking some time to think about what is really important to you with money. Do you want to own a home? Are you looking for financial security in the long term? Do you want to save for your child’s college education? Maybe traveling the world or starting a business is on your list?
Keep in mind that your financial goals should match your values and dreams. It is okay to change those goals as your life changes.
Set Short, Mid, and Long-Term Financial Goals
Setting financial goals provides a roadmap for your financial journey. Distinguish between short-term goals (within a year), mid-term goals (one to five years), and long-term goals (five years or more).
Here are some examples:
Shirt-Term Financial Goal Examples
Build a $1,000 emergency fund
Pay off a credit card
Mid-Term Financial Goal Examples
Save for a down payment on a car
Invest in a retirement account (IRA)
Long-Term Financial Goal Examples
Purchase a home
Achieve financial independence for retirement
Remember to review and adjust your goals as needed. Life is constantly changing, and your financial goals should reflect those changes.
Break Down Goals into Manageable Steps
It’s normal to feel stressed when you have a big financial goal. To make it easier, break it down into smaller steps. This helps you stay focused and motivated. For example, instead of aiming to save $50,000 for a down payment right away, start with a smaller goal that you can reach.
Here’s how to break down your goals:
Set a realistic savings target: Start by saving a small amount every month, like $50 or $100, with a goal of reaching an initial savings goal of $500.
Automate regular contributions: Create automatic transfers from your checking account to your savings account.
Track your progress: Check how you are doing towards your goals regularly.
If it helps you stay motivated, identify a ✨ little treat ✨ for when you accomplish each mini-goal. Allow these rewards to vary based on your current interests, but try to pick free or low-cost options and keep them in line with your goal so you don’t derail your budget.
Meeting Long-Term Financial Goals with ADHD
Everyone’s financial path is different, so adjust these steps to suit your needs. The important thing is to begin and keep moving forward. With each step, you will feel more confident and have better control over your finances.
Create a Personalized Budgeting System
The key to good financial planning is having a solid budget. However, regular budgeting methods often don’t work for ADHDers. It’s important to create a budget that fits your personal needs and style.
Instead of limiting what you spend, think about spending in a mindful way. First, figure out how much money you get each month (your gross income). After that, set aside certain amounts for different categories based on essentials (rent, electric, insurance, etc.), what matters most to you, and how you like to spend.
There are a variety of budgeting apps and methods that can help you track your spending and stay organized, but these are rarely built for neurospicy brains. Don’t be afraid to test out different methods until you find what’s best for you.
Establish an Emergency Fund
An emergency fund acts like a cushion. It protects you from unexpected situations like losing a job, high medical bills, or car repairs. But while an emergency fund can be especially helpful for ADHDers, we may struggle with the concept if it doesn’t provide a dopamine boost. Reminding yourself of why an emergency fund is important can help you shift your thinking when it comes to saving.
Not only can having an emergency fund give you peace of mind, it can give you the freedom to protect your mental health and avoid burnout if you have unpredictable income. To make the most of this approach, try to save enough money to cover three to six months of living expenses in a separate savings account for emergencies. You can start with a small amount and build your savings bit by bit.
Develop a Debt Reduction Plan
If you are facing debt problems, you’re not alone. Many people deal with this issue, and it is important to take action. First, make a plan to reduce your debt. Begin by writing down all your debts. This includes credit card debt, student loans, and personal loans.
Depending on your situation, you may want to focus on paying off debts with high interest first, like credit cards, because they gain interest quickly. This is commonly known as the debt avalanche method. Alternatively, the debt snowball method focuses on paying off the smallest debt first to help you feel motivated.
Staying ON TRACK
Staying motivated is essential to reach your financial goals, but it’s something ADHDers struggle with. Consistency is key but it’s also really hard. A good way to stay motivated is to check your financial progress often and celebrate what you achieve. Did you follow your budget this month? Did you save a certain amount? Make sure to recognize your hard work.
As you reach your current goals, it’s good to set new money goals. This helps keep you interested and gives you a feeling of success. Your new goals can be something exciting like a dream vacation, a new device, or a chance to invest.
Always remember that financial planning takes time and there’s usually not a quick fix waiting in the wings. You may face some setbacks, but don’t let them stop you. Keep your eyes on the big picture and keep moving ahead.
Tips for Setting and Reaching Financial Goals
Successful people with ADHD often say their achievements come from using specific financial tips that match how their brains work. Here are some helpful ideas:
Embrace your strengths. Focus on your strengths instead of your challenges. Find what you do well. If you are very creative, use that creativity to think of new ways to save money or make money.
Seek professional guidance. Don’t be afraid to get help from financial professionals who know how to work with people with ADHD. They can give you personal advice, help you stay on track, and provide support just for you.
Celebrate small wins. Break big goals into smaller steps. Recognize your progress as you move forward. Celebrate your efforts, and use your successes to inspire you. Remember, financial success is a journey, not just an end goal.
Frequently Asked Questions
How do I start financial planning with ADHD?
A good first step is to talk to a financial coach who understands the ways ADHD can impact our finances. I can work with you to assess your current financial situation, identify your values and goals, and create a plan that helps you feel more confident about your financial future.
Can setting financial goals help manage ADHD symptoms?
Reaching your financial goals can improve your self-esteem, lessen financial stress, and bring order and focus to your life — but it isn’t a cure or treatment for ADHD.
