Setting and achieving financial goals can be a daunting task, especially for individuals with ADHD. The challenges of maintaining focus, staying organized, and following through on plans can make it difficult to manage finances effectively. However, having clear financial goals is essential for long-term success and financial stability. In this post, we will explore practical strategies to help ADHDers set and achieve their financial goals.
Identifying and setting goals
The first step in achieving financial success is identifying and setting clear goals. Financial goals can be divided into short-term and long-term objectives.
- Short-term Goals: These are goals you aim to achieve within a year, like saving for a vacation, paying off a small debt, or building an emergency fund.
- Long-term Goals: These are goals that take longer to achieve, such as saving for retirement, buying a house, or paying off substantial debt.
When setting goals, it's important to make them SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
- Example: Instead of saying "I want to save money," a SMART goal would be "I want to save $5,000 for an emergency fund by the end of the year."
- Coaches at Shimmer can help you with setting these SMART goals and even help you with creating SMART actions to move the needle on those goals each week.
Breaking down goals
Once you've set your financial goals, the next step is to break them down into manageable tasks.
Start by dividing your goal into smaller, actionable steps. For example, if your goal is to save $5,000 in a year, break it down to saving approximately $417 each month.
This approach can also be applied to debt repayment. I used the debt stacking or snowballing method to help me pay down $30,000 of student loans in five years. Pay off smaller loans first and then roll those payments into larger loans. This method helped me gain momentum and stay motivated. I did this as a single person, living with my parents for a time to cut down on costs and help achieve my goal of paying off my student loans quickly.
Finally, establish a timeline for each step. Assign specific deadlines to keep yourself on track, and make sure you have a plan set up to check in and assess how you’re doing on a regular basis.
Tracking progress
Regularly tracking your progress is crucial for staying motivated and ensuring you're on the right path.
- Use Tools and Apps: Utilize budgeting apps like PocketGuard, Wally, or Goodbudget to track your progress. These tools can provide visual representations of your progress and help you stay organized.
- Regular Check-Ins: Schedule regular check-ins, such as weekly or monthly reviews. Assess your progress and make adjustments as needed.
- Get an ADHD Coach: An ADHD coach can provide personalized support and accountability. They can help you stay focused on your goals, provide strategies to overcome obstacles, and celebrate your achievements with you.
Staying motivated
Staying motivated with ADHD can be challenging, especially when working towards long-term goals. Here are some tips to keep you on track:
- Overcoming Obstacles: Identify potential obstacles and plan how to overcome them.
- Examples: If impulsive spending is an issue, set up barriers like leaving your credit card at home or cutting up your credit cards so they aren't there to bail you out. This forces you to be more mindful about your spending and rely on your budget.
- Celebrate Small Wins: Reward yourself for achieving milestones.
- Boost Motivation: Celebrating small wins can boost your motivation and help you stay focused.
- Personal Example: For me, keeping my why or dreams front and center is crucial. I love looking at houses, and coincidentally, looking at houses just over what I can actually afford helps me stay motivated and gets me excited to work hard toward my goal.
Charting your course
Setting and achieving financial goals is not just a destination, but a journey. For individuals with ADHD, this journey may have unique twists and turns, but with the right approach, it can lead to remarkable success. Your journey to financial stability is uniquely yours. What works for others may not work for you, and that's okay. The key is to find strategies that align with your strengths and accommodate your challenges.
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