ADHD and finances

[gavint]

A lot of the threads looking at ADHD and its consequences on personal finance are rather old, so I thought I'd start a new one.  I'm in the process of getting diagnosed in my early 40's, but it's a long, complicated and expensive process where I live, and, well, ADHD....   

A lot of people with this condition seem to struggle financially, I certainly did in my twenties.  Perhaps it would be helpful for others with this condition to share any hacks they've developed to be able to move forward with their financial goals, from our unique perspective. 

I'll get started:

For me it was like flipping a switch - I decided to become interested in my finances, and turned my hyperfocus onto nailing down my debts.  I made lists of everything I hadn't yet paid for - useful, because some of the stuff I was in debt for was really stupid - beer and coffee consumed months before, that kind of thing...  I got obsessive about it, and tweaked everything to pay off the debts as fast as possible, and it worked.  Once I got those out of the way, I flipped into savings mode.  It became a habit and a hobby.

THEN I discovered the concept of FIRE and Mrmoneymustache - awesome!  It turned all of this into even more fun!   

Since then that obsessiveness hasn't died away - it may not be psychologically healthy to check my bank account several times a day, but it is working financially! 

[TrMama]

I don't have a diagnoses, although I suspect I'm somewhere on the spectrum between no ADHD and some ADHD. It certainly runs (mostly undiagnosed) in my family and one of my kids has a formal diagnosis.

One of the biggest hacks that's helped me be financially stable was setting up automatic deductions from checking to savings. I only have to think about it once, and as long as my income remains stable then I don't have to even think about it. Money just accumulates in the checking account. If you have the option of doing the same thing for an investment account, even better.

Another hack is to keep your credit card limit low. This limits the damage you can do from impulsive purchases.

Otherwise I'll be following along for tips for my teenager . . .

[therethere]

I am strongly suspected to be ADHD (by myself). I too went balls to the wall on debt payments (started with 200k+ in student loans). My hyperfocus definitely kicked in to pay down debts and DO ALL THE MATH. It definitely helped me get ahead.

But, just wait until you' into FIRE and everything is on autopilot. Suddenly going towards FIRE isn't fun or interesting anymore, but rather another anxiety added  to your life. At least that's what I'm navigating now.

[BlueHouse]

I may be in the same boat.  For years and years I've used financial management applications to track every penny I've ever spent or earned.  BUT... while I knew where every penny went, it wasn't until I found MMM that I learned how to pull back and look at the big picture.  So I went from a very detailed look at things to less detail and more focus on goals. 

The "Throw down the gauntlet" forum section has been hugely fun and helpful to me.  Particularly the ones about no-spend months, and the "save 50/100K" threads.   The challenges opened my eyes to what others did and how they did it. 

In short, I changed hyper focus from what I was doing to what I wanted to attain. 

[lazycow]

Thank you for starting this thread!
My 20 yo daughter has just been formally diagnosed and I was looking for resources to help her. Fortunately for her, she started earning money at a casual after-school job aged 14 so made a lot of mistakes with money (well, *I* considered them mistakes!): spending every cent she earned buying all the crap, lots of impulse purchases. Which she then realised she didn't need most of, and sold on FB, and the cycle would begin again. She was too stubborn to listen to me, and put aside any savings, until we asked her to pay for 1/2 her airfare to Europe for a language class trip when she was 16. Turned out laser-focus saving for a goal was easy for her. Now she has a Superannuation fund through her casual job, and though she understands the power of compound interest, she has no intention of investing at this stage. Crucially, she knows herself well enough to vow NEVER to have a credit card, only a debit card. All I can now do is give her the information and model intentional/conscious spending and hope for the best. Unless someone has any suggestions?!

[PoutineLover]

I probably have ADHD, I was treated for it a few years back but never got a formal diagnosis. Getting diagnosed is on my to do list, but the process seems complicated so I keep putting it off, although I do think it would help me.

I find the saving part easy, I really like tracking my expenses and watching my net worth grow. I do make some impulsive purchases but my tendency to overthink everything keeps it mostly in check. I had student debt and I was able to pay it down very quickly because it was a set goal and seeing the numbers decrease was hugely motivating. Credit cards have never been an issue because I always pay them off in full, if anything I'm too proactive and pay them off every week or two.

For me, the biggest struggle and impact is on my career. My inability to concentrate on things that bore me makes it hard to perform well at work (and previously at school). I don't think I'm in a job that suits me well, but I'm having a hard time figuring out what I would like better. Dealing with the whole online application system is super discouraging. I know I'm a smart, capable person when I set my mind to it, but when something isn't important to me it becomes hard to force myself to pay attention and do the work. It's probably also a reason why I'm attracted to FIRE - I want my career to be as short as possible.

[gavint]

One of the biggest hacks that's helped me be financially stable was setting up automatic deductions from checking to savings. I only have to think about it once, and as long as my income remains stable then I don't have to even think about it. Money just accumulates in the checking account. If you have the option of doing the same thing for an investment account, even better.

Another hack is to keep your credit card limit low. This limits the damage you can do from impulsive purchases.

Otherwise I'll be following along for tips for my teenager . . .

This!  Automatic payment every month for your credit card as well, if you can organise that.  Otherwise don't have one at all, use PayPal. 

[gavint]

@PoutineLover - I've been on a research binge about ADHD the last while, and what is amazing to me is how similar other people's experiences are to my own. 

School and conventional employment are tough because they're generally 90% boring.  I lucked out by stumbling into landscaping and tree work as a career path.  This is a hugely variable job and with low barriers to self-employment.  This is a big plus, because as a self-employed, I can pick and choose which projects I want to do and for whom. 

Maybe self-employment in some capacity is possible in your field?

[Steeze]

Automate absolutely everything -

I have dozens of auto transactions that happen each month. Cash moving from one account to another , payments getting made, checks getting sent, shares getting purchased, even auto purchases of things like toilet paper and diapers - Nothing HAS to be done by me at all except show up to work to make sure the checks come in. If I can do that I will retire by 40.

Now only I could stop tinkering with this spreadsheet...

[TrMama]

@PoutineLover - I've been on a research binge about ADHD the last while, and what is amazing to me is how similar other people's experiences are to my own. 

School and conventional employment are tough because they're generally 90% boring.  I lucked out by stumbling into landscaping and tree work as a career path.  This is a hugely variable job and with low barriers to self-employment.  This is a big plus, because as a self-employed, I can pick and choose which projects I want to do and for whom. 

Maybe self-employment in some capacity is possible in your field?

Interesting point. My 14yo is interested in some landscaping-adjacent career paths (forestry and farming, so far). I've mentioned that they may want to also consider landscaping as a first job since it seems like a low barrier option. I hadn't considered the self employment aspect. Thanks for pointing that out!

[Psychstache]

Thank you for starting this thread!
My 20 yo daughter has just been formally diagnosed and I was looking for resources to help her. Fortunately for her, she started earning money at a casual after-school job aged 14 so made a lot of mistakes with money (well, *I* considered them mistakes!): spending every cent she earned buying all the crap, lots of impulse purchases. Which she then realised she didn't need most of, and sold on FB, and the cycle would begin again. She was too stubborn to listen to me, and put aside any savings, until we asked her to pay for 1/2 her airfare to Europe for a language class trip when she was 16. Turned out laser-focus saving for a goal was easy for her. Now she has a Superannuation fund through her casual job, and though she understands the power of compound interest, she has no intention of investing at this stage. Crucially, she knows herself well enough to vow NEVER to have a credit card, only a debit card. All I can now do is give her the information and model intentional/conscious spending and hope for the best. Unless someone has any suggestions?!

Have her check out How to ADHD YouTube channel. The creator is a young woman with ADHD herself and the videos are made for those with ADHD:

https://youtube.com/c/HowtoADHD

[Loren Ver]

I am currently helping to financially guide a family where one spouse has ADHD, so reading about what is and isn't working for other MMMers is very helpful.  She is the one that normally does the finances and things are really bad right now (thus their asking me for help).  Thank you for posting this and keep them coming!  I know eventually they will find what works for them, shortening the time and improving the success rate would be great!

[lazycow]

Have her check out How to ADHD YouTube channel. The creator is a young woman with ADHD herself and the videos are made for those with ADHD:

https://youtube.com/c/HowtoADHD

Thank you, that was the first resource I came across when starting to research. I think she is fabulous, but my daughter can't listen to her (voice gets on her nerves). Sigh.

[boarder42]

Oh the gloriousness of ADHD hyper focusing on something and completely immersing yourself in learning. I think something like half of fortune 500 CEOs have ADHD.  I've got it. I don't take medication.

Having recently reached Fi I am currently trying to look at things less but it's really hard. I removed a couple apps from my home screen on my phone that track networth daily and by the minute basically. And I stayed away for a month. That's alot considering I checked it 20-50x a day.

Currently on FMLA for 12 weeks and starting to decompress as I prepare to RE in Jan 2022. I'm addicted to my phone I need to find other addictions that are healthier.

[gavint]

@lazycow ha!  I found that YouTube channel too - exactly the same feeling about it as your daughter - good info, grating voice!

I found Rick Green more watchable (totally ADD), but everyone will have one that works better for them.

[Psychstache]

@lazycow ha!  I found that YouTube channel too - exactly the same feeling about it as your daughter - good info, grating voice!

I found Rick Green more watchable (totally ADD), but everyone will have one that works better for them.

Black girl lost keys is also another great resource.