How to Budget with ADHD
No BS, we are going to dive right in with specific tips on budgeting as an adult with ADHD. Budget for a neurotypical isn’t easy, but as a neurospicy individual trying to budget using neurotypical advice is like cranking the difficulty level up to damn near impossible. It doesn’t mean you can’t budget (even if you’ve tried before and failed), it means that you have to try new and unique ways that work with you and your amazing, unique brain!
Customize Your Budget:
Here's the deal: there's no one-size-fits-all budget for anyone but for us ADHDers, we need to embrace this even more than your regular Joe. You need to customize your budget to fit your unique needs and quirks. That means finding a system that works for YOU, whether it's a fancy app, a good old-fashioned spreadsheet, or an extensive system of bank accounts and automations. The key is finding a method that keeps you engaged and excited about your finances.
It Starts with a Plan:
I wish this step was one you could skip, but alas, it is not. It’s important to build a strong foundation for the changes you are looking to make and that comes with a BUDGET! But, what I am happy to report is that it’s not as much work as you think it is. No matter how many bank and credit cards statements you go through you will NEVER build the perfect budget (sorry for keeping it real). So, let’s keep it simple. Unless of course you are down a dopamine rabbit hole and are excited AF to scour through months of transactions. If that’s you, go for it and don’t forget to colour code your spreadsheets (and maybe send it to me because I love a good spreadsheet)!
The goal of creating your plan it to have a starting snap shot of your income and expenses each month. Then from there depending on the timing of your income, we can break it down a little further but looking at a weekly or bi-weekly snap shot.
Simple steps to build your budget:
Figure out what method you want to use to build your plan. Here are a few options:
Spreadsheet (download a free template here)
Whiteboard - great for you if having things easily visible works for you
Notebook - no, you don’t need to go buy a new one, dust an old one off :)
Budgeting app - your bank may even have one you can use (be cautious with this method as many don’t make it easy to see your overall plan, which is important)
Corkboard with index cards
Sticky notes
Calendar
Start with your income. List out your different sources of income and the following information for each income source.
Amount (if it varies, include the approximate range)
How often each income type comes in
Date of the next time you will have income from each source
Then it’s time to dive into your expenses. You CAN choose to look through and track as many months as you want to, BUT so this isn’t creating a barrier for you, you can start by looking at the last month. When looking through bank and credit card transactions for the last month, here are some steps I recommend:
Create categories that work for you, you can have as many, or as few as you want. As you get rolling with your budget, you can change them up if what you started with isn’t working.
When listing out each expense list out any specific due dates and amounts (or approximate amounts for variable items).
I recommend sorting each category you have created into one of these larger categories:
Bills fixed expenses: For items that are pretty consistent as far as amount and frequency for things like rent, phone bills, and insurance payments.
Variable expenses: These are items that have amounts and frequencies that vary each month, such as groceries, gas, entertainment, and online shopping.
Holy shit expenses: Yup, you read that right. These are larger expenses that could have a regular timing (annual subscription or insurance payments), or may be ones that you never know when they will hit (car repair, vet bill).
How you get the amounts for items that aren’t fixed expenses is going to vary. For more regular expenses like groceries, if you go each week, estimate how much you spend weekly. For less frequent larger items like car repair or vet bills, start with an approximate annual amount and then break it down to a monthly amount.
Take 5 minutes to do a little happy dance to your current hyper-fixation song because you’ve done A LOT of work to build your budget! Whoop-whoop!!
Now we math! Add up all of your income and your expenses. Take your income total and subtract your expense total (if you used my free budget template it mathed for you-it even calculates all income and expense into a monthly amount). For variable income, I recommend using an amount on the lower end for building your plan, and for expenses that vary, start with an amount of the higher end, this way we’re using ‘safer’ numbers. Based on how the math works out for you, here are a few next steps.
Do you have a surplus or money that should be left over each month? YAY again! Go back to your budget and give this surplus a job. Were there expenses you were possibly underestimating? Or things you cut that you really enjoy? Or maybe the best place for this surplus is to start or grow and emergency savings account.
Did you come up short? Take another look at your income and expenses. If you income varies, but you have a typical amount and used the worst case scenario amount, if you feel comfortable bumping it up a little, go ahead and do that. Or do you have any opportunities to increase your income? Are there expenses that you can reduce or cut out? Get really ruthless with making changes until you get your budget as close to balancing as you can.
Take another few minutes to celebrate yourself because looking at your numbers is challenging.
Set a reminder on your phone to come back and review your numbers in 1-3 days to see if you want to make any tweaks.
You Have Your Budget - Now What?
This is often where we stop and then wonder why nothing has changed 2 or 3 months from now. But that’s not going to be you today because while building your plan is a huge key to making changes, the steps that come next are just as important. So what are those steps?
Make a Plan for Right Now!
Map out a plan for the money you currently have. Look at your current account balance and any expenses you have before you are paid next to figure out exactly where you stand. Whenever things are tight, like when your paycheck is lower than you planned, this is a great process to go through to gain clarity on where you stand.
Separate, Separate, Separate
When all our money is in one, or even two accounts there is no clear way to use your account balances to make spending decisions. Having your account(s) at one bank can also set you up for failure. To learn more about the separations I use myself and recommend to my clients, you can find all the info in another blog post: Separate Your Money to Make Budgeting Easier.
Automate, Automate, Automate:
Let's be real – remembering to pay bills on time is not our strong suit. That's where automation becomes our best friend. Set up automatic payments for your bills, and automate transfers to move money into your savings goals to take the pressure off your ADHD brain. This can help you avoid late payments, which will benefit your credit score!
Find Your Support System:
Last but certainly not least, don't go it alone. Surround yourself with a kick-ass support system that understands and supports your ADHD journey. Whether it's a trusted friend, family member, online community, or financial coach (hey 👋🏼), having someone in your corner can make all the difference.
Final Thoughts:
Budgeting with ADHD will feel like a rollercoaster ride at times, but with the right strategies and mindset, you've got this. Customize your budget to fit your needs, adjust as needed, and remember to celebrate your victories along the way. You're capable of achieving incredible things!
