Financial stress can be a significant burden for anyone, but it can be particularly challenging for individuals with adult ADHD. The unique cognitive and emotional challenges associated with ADHD can amplify the stress and anxiety related to financial issues. According to many of my clients, financial stress is just another thing to add to the shame of ADHD and executive dysfunction. This shame often leads to more emotional spending and impulse buying, creating more financial distress and perpetuating a vicious cycle.
Understanding the psychology behind this stress and learning effective coping mechanisms can help you achieve better financial health. In this post, we will explore the connection between ADHD and money anxiety, and offer strategies to manage it effectively.
Impact of financial stress with ADHD
Financial stress affects not only your wallet but also your overall well-being. Here’s how it impacts individuals with ADHD:
- Psychological and Emotional Effects: Financial stress can lead to anxiety, depression, and a sense of helplessness.
- Intensity: For ADHDers, these feelings can be more intense due to difficulties in managing emotions and maintaining focus.
- Client Example: Many of my clients report that financial stress exacerbates feelings of shame associated with ADHD and executive dysfunction. This shame often leads to emotional spending and impulse buying, which creates more financial distress and continues the cycle.
- Behavioral Responses: Under financial stress, individuals with ADHD might resort to impulsive spending, procrastination in dealing with financial tasks, or avoidance of financial responsibilities altogether.
- Avoidance: Avoiding finances due to intense shame is another common issue I see in my clients. This avoidance only furthers the shame instead of helping it, as they often ask themselves, "Why is this so hard for me and not others?"
- Comparison: Comparison is the thief of joy, and comparing your finances to others often leads to spending money you don't have. You'll never fully know the extent of someone else's finances. While it may look like they have a lot of money, they could be living paycheck to paycheck because of their mountain of debt. Comparing yourself to others steals your joy and contentment with your life situation and adds to the shame pile. This mindset shift is crucial and something I work on with many of my clients. Trying to keep up with the Joneses often results in accumulating as much debt as they have, which is not something to aspire to.
ADHD coping mechanisms for financial stress
Managing financial stress involves both psychological strategies and practical steps. Here are some coping mechanisms tailored for ADHDers:
- Mindfulness and Stress Management Techniques: Practicing mindfulness can help you stay present and reduce anxiety.
- Techniques: Techniques such as deep breathing, meditation, and mindfulness exercises can improve emotional regulation and reduce stress levels.
- Building a Support System: Having a strong support system can make a significant difference.
- Surround Yourself with Supportive People: Surround yourself with people who do better, as it helps you do better. Being around content people who are not comparing themselves to others will positively influence you.
- Support Network: Whether it's family, friends, or a support group, having people to talk to and share your concerns with can alleviate some of the burdens of financial stress.
- Awareness Around Emotional Spending: Recognizing emotional spending gives you the opportunity to take action.
- Parameters: For instance, putting parameters around spending, like waiting 24 hours before making a large purchase, can help.
- Visualization: When I feel like spending money just because I am bored or emotional, I use it as an opportunity to visualize or plan my dream. This helps me avoid unnecessary spending and re-motivates me towards my financial goals.
Practical strategies for ADHD money management
In addition to coping mechanisms, implementing practical strategies can help manage financial stress:
- Creating a Financial Plan: Develop a comprehensive financial plan that includes budgeting, saving, and debt repayment strategies.
- Breaking Down Goals: Breaking down your financial goals into smaller, manageable tasks can make them feel less overwhelming.
- Frequent Visual Cues: Place your financial plan in multiple places where you will see it frequently, such as on your phone, iPad, desktop, wall, fridge, bathroom mirror, and wherever else you will see it. I had a client tell me this felt like a waste to them and felt silly that they needed so many reminders when others didn't. However, the ADHD brain needs visual cues, because out of sight, out of mind is a real thing for us.
- Prioritizing Expenses and Savings: Identify your essential expenses and prioritize them.
- Pay Yourself First: Set aside a portion of your income for savings first, a strategy recommended by Robert Kiyosaki in his book Rich Dad Poor Dad. Paying yourself first forces you to get creative in finding ways to pay for everything else.
- Benefits: This approach not only ensures you save more but also teaches you to be better with your budget and gives you an opportunity to use your creativity and entrepreneurial spirit to find a way to pay the bills.
- Motivational Tools: Being clear on your goals and understanding exactly what it takes to achieve them is crucial.
- Clarity: Much like the captain of a ship tells all the crew what needs to be done to get from point A to point B, you need to be clear about your financial goals and how to achieve them.
- Shimmer Module: At Shimmer, we have a learning module to help our clients figure out their North Star so that all their goals can be set with that in mind.
- Body Doubling: Using body doubling to work on your budget and track your expenses can be incredibly helpful when you're struggling to stay focused. At Shimmer, we offer body doubling sessions to our clients, providing a supportive environment to help you stay on task.
Putting Your Financial Stress to Rest
Financial well-being is about more than just numbers—it's about cultivating a healthy mindset and implementing practical strategies. Similarly, managing ADHD and money anxiety calls for specific strategies and mental shifts.
As you embark on this journey, consider seeking additional support if needed. Whether it's consulting with a financial advisor, working with an ADHD coach, or utilizing tools designed for neurodiverse individuals, don't hesitate to use resources that can enhance your financial well-being.Your financial story is uniquely yours, and with the right mindset and tools, you have the power to shape it in a way that brings you peace, security, and success.
