Budgeting advice

[Anonymous]

I have read several books on ADD, i was diagnosed 20 years ago. They all say it is REALLY important to monitor your finances and stick to a budget- but they don’t say HOW! What ideas have worked for you?

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[Anonymous]

I have applied for as many credit cards as possible and ran them so full that my wallet was being towed behind me…. ok, that is like almost totally true.

On a serious note, I have sat down and used a Excel spread sheet and worked out my ‘essential bills’, ones that don’t change that much from month to month, stuff like your mortgage/rent, etc. I listed them on the spread sheet from top to bottom. Then across the top I listed when I get paid and the amount as well as any extra income. Then I total them for an overall monthly income. Since I get paid twice a month, I put two entries.

The bills are listed on the left side downwards. Then as I pay off each bill I list it on the appropriate line. I have all entries of bills totaled at the bottom and that total is subtracted from my total monthly income. Below all that, I have a line that clearly shows me what surplus I should have and what negative, if any.

It isn’t a perfect set up but since I have committed to it through my ADHD coach, it makes me more accountable, responsible and aware of what I am doing financially. The trick to good budgeting, in my opinion is simple, dedication, persistence, commitment and accountability to someone aside from me.

Not sure if this helps but I would be glad to share my spread sheet with you if you wish.

Distracted66

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[walkwithfarmgirl]

You have inspired me to go back to a spreadsheet this year…the slips of paper all over the house don’t seem to be working for me.

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[Anonymous]

I’m one of those rare organized ADD-ers, but I am guilty of organizing, re-organizing and re-re-organziaing…which defeats the purpose!! Unfortunately, it doesn’t help with impulsive purchases and debts that spiral out of control!!

I used to have an accounting job so I get some peace from putting my finances in order. I use Quicken on my computer; my bank account info gets downloaded onto it – it’s much easier to balance the checkbook than doing so manually. I make sure I categorize all my checks and debit card purchases (I use my debit card almost exclusively and not cash so I can track my spending). It’s got a budget feature (although..do I use it?? nope) it’s kind of difficult to work in unusual expenses (unexpected car repairs or vet bills, for example).

What it does do fairly easily is break down expenses by categories so you can see what you’re spending your money on and helps me to see areas where I can cut back. I admit I have to go back to it many times, but it helps that it’s all in order.

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[Craig]

I’m not good at budgets, but I am good at paying bills and keeping my check-book balanced. Here’s what works for me. Mail coming in has it’s own small table, a letter opener, and a garbage can. A lot of mail gets thrown out without opening it. It feels good to go directly from mailbox to trash. Bills go into a small pile, everything else I want to keep or look through later goes away – to anywhere else to get this stuff away from the bills.

Here’s the magic that makes this all work. I write down the amount of the bill on the envelope. I also write the date the bill is due on the envelope. Since I work for myself, I mark each envelope with an “H” or a “W” for home or work. Then I sort this little pile – the bill that needs to be paid first is on top. This little table is in a high traffic area that I pass many times every day.

When a bill is due or there is a pretty good pile of them, I take the bills to the computer and pay them online or write a check. At the same time, I enter what I did into Quicken – similar to what anonymousgirl does. My monthly bank statement ends up in the pile of bills and when I get a statement, I do the “reconciliation” on the spot.

It’s not exactly budgeting, but I can create reports in Quicken that let me know how much I spent last year at the grocery store, cash, credit cards, utilities, etc.

It’s finally a habit to do all of this – a very good habit for me. My bills are always paid on time and my checkbook always balances. It’s great to have this little part of my life organized and working well.

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[Anonymous]

walkwithfarmgirl. I just started to put my artwork in showings. At the fair’s they would always have an art section. And start sumitting your work to the galliers. They want to see a body of work you don’t have to have an art degree. If you start putting your work into group showings. Even if they don’t sell you can put it on your portfollio . I belong to a few groups they put on showings every year. I summit my work to The Nova Scotia ART Gallery even if they don’t accept you keep summiting your work. Plus this is the first time I’m trying to put together a solo show. I wan’t to go to Ont but I;m trying to figure things out. It is hard when you live down here. In Lunebrug they have a Gallery and you can put in two piece a month. Plus I have work in the hospital they have a change over every month. Just get your work out there I don’t know were you live just don’t worry about selling at this point. Just get your work out and join groups. The biggest thing about some artist when they are just starting out. They charge to much for there work. Someone I knew charge 350.00 on a piece that they needed help with. And that was a price with no body of work. So just look at price. My first piece I sold was huge half 30×40 that was the price that I sold it for. Now I get 1200 so start of low and build your price up. Do you have a website? love to see your work. Clamdigger

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[Anonymous]

I’ll take a shot at it Nedisings….. this is a page from my life so…. I have had the experience….. it worked very well for me. I have also put both my ADD children on this path and they are on their way to having a nice pot of $$$$….. financially stable, and well looked after $$$ for the rest of their lives. ON THEIR OWN!!! Proud Dad….

Simple Steps: (I’m gonna provide detail so don’t be offended)

1. Set a date to do this ( a drop dead date…. no ifs or buts)

2. Set aside a few hours ( no distractions or don’t do it….tell people around to leave you alone, don’t answer the phone )

3. Get a Pencil (not pen) and paper ( maybe a few sheets lined), a calculator if you have one would be nice (math challenged)

4. List your expenses down one side of the paper…ALL OF THEM…..a few you can lump into categories i.e. (fun entertainment)

5. Next to your items indicate what you spend each month on that item…. be honest

6. Annual costs or 1/4 annual costs etc. should be divided appropriately into monthly and add them to your monthly sheet

6. Next review your costs….see if there are places you can reasonably trim a little spending do it no matter how little but be realistic…… ensure you can stick to it….. there is no use in trimming if it’s not what you can live with!!!!!

7. Subtract your monthly costs from your monthly income!!!

There you go…… with any luck you should have some $$$ left at the end of the month.

Part II

1. Start a separate bank account ( do it now )….. none checking, non automated teller usable. Place your saving in that account!! You will never EVER spend this money….EVER EVER EVER!!!

2. Once you have a certain amount ($100.00 or $200.00 what ever that number is)….. put it into a GIC type of fund…. at the best interest rate you can, your bank can do this for you. This is money you will never ever think of spending again!!!! I’ll tell you why in a minute.

3. Find a financial adviser (mutual funds not the market) …..there are many…. find one that does not charge you for advise!!!! Find one that does not charge you fees!! They are out there…..find one that….if you make money they make money….THEY ARE OUT THERE!!!! Beware of the glitzy get rich quick advisers….. there is no magic bullet. If they offer interest rates of more than 5% >8% they are suspect….in this market less might be right too.!!!

5. You can agree (with your adviser) to a certain amount of $$$ you will invest every month…every month, automated form your bank account.

NOTE: The advisor should educate you on your risk tolerance and show how much you should be putting aside for where you want to be at what point in your life!!!!

They should be open to talking to you at least once a 1/4 for no charge…and make directional changes in your portfolio at no charge!!!

There is no substitute for time in the market… they will explain this to you. Consistent, diligent saving is the key. At the same time keep adding to your special savings account …to your GIC base….. I was going to tell you why. At some point in the future if you need to borrow you can use your GIC base for collateral and reduce your interest rate…increase your credit rating all at the same time…while your GIC is still earning interest.

That is a thumb nail on how to be financially independent. I did it…… I explained it to my children and they are both under 30 and have bank accounts that are more than respectable!!!! They have learned do not use your money…use the banks money… if you have money…the bank will love you!!!!

You will find once you get started that you may have been pissing a lot of cash away….so what… no more!!! You do not need to be well off to do this…one of my kids has a bartender job, both live on their own and are doing well. Once you get started it’s addicting, a good compulsive behavior!!! It works…it works for everybody who is diligent!!!!

Small amounts are fine!!!!! Manage the pennies and the dollars will grow on their own!!!!

good luck….. I hope that helps…….good fortune to you

toofat

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