Having ADHD or being neurodivergent doesn’t mean you’re doomed to struggle with finances — it simply requires different strategies. Money management is deeply personal, and various factors can derail even the best-laid plans.

Increasingly, women are being diagnosed with ADHD or neurodivergence, affecting areas like task completion and time management. While this condition can lead to impulsive spending, it doesn’t imply poor money management; rather, it indicates the need for alternative tools and methods.

This is why an ADHD money coach, Ellyce Fulmore, offers her top three recommendations for financial management.

STEP 1: ESTABLISH A FIVE-ACCOUNT SYSTEM

If you find managing a single account for checking and savings overwhelming, you’re not alone. Fulmore recalls her struggles with keeping her financial goals distinct when everything was pooled together, leading to frequent errors.

“I made many mistakes because I tried to rely on mental math without a clear visual guide,” she explains. “I would spend money only to be hit with unexpected fees when bills came due.”

By creating a five-account structure, Fulmore found clarity and ensured every bill was accounted for. She suggests organizing your finances into these accounts:

  • A hub account: This is where your paycheck is deposited and the starting point for transfers to other accounts.
  • A bill payment account: Use this to manage all bill payments.
  • A spending account: Think of this as your personal allowance, where any leftover fun money goes for discretionary spending.
  • A short-term savings account: Ideal for emergency funds and larger financial goals you aim to achieve in the next few years, like a vacation or a new vehicle. For higher interest, consider a high-yield savings account.
  • A long-term investment/retirement account: Saving for retirement is crucial. Keep these funds in a separate account to avoid temptation until you reach the age of 59 ½ for penalty-free withdrawals from 401(k)s and IRAs.

STEP 2: IMPLEMENT VISUAL REMINDERS

Individuals with ADHD may respond better to immediate rewards, making visual reminders effective for tracking progress toward long-term goals. These reminders could be apps, phone wallpapers, or spreadsheets.

“Our brains often overemphasize immediate rewards while undervaluing long-term ones,” Fulmore says. “So saving for a goal that’s years away can feel unmotivating.”

To keep yourself engaged, Fulmore recommends a reward system; treat yourself for every significant milestone, like saving a certain amount.

STEP 3: ESTABLISH A MENTAL HEALTH SINKING FUND

Have you heard of a sinking fund? It involves saving a fixed amount each month for a specific goal, whether it’s $10 monthly for a total of $120 yearly or $200 monthly for $2,400 by year’s end. The goal is consistent contributions toward a target.

A dedicated fund for mental health is vital, not just for those with ADHD but for anyone facing mental health challenges.

“Mental health issues can arise unexpectedly, affecting your finances,” Fulmore warns. “Having a sinking fund alleviates financial stress during tough times, allowing you to focus on what you truly need.”

FINAL THOUGHTS

Regardless of your neurotype, achieving your financial goals requires time and tailored planning. By adopting strategies that resonate with your thinking style, you can effectively pursue both short- and long-term savings objectives.