ADD (Attention Deficit Disorder) and Financial Security

     Recently, I posted a question on a financial message board, asking if anyone had ADD and if it had affected their financial life. The responses were overwhelming! As expected, there were a range of opinions but most people had struggled to find a system for managing their finances, one that took into account some of the challenges of having ADD: distractability, trouble focusing on something for a long time, getting everything done effectively, etc. Many had learned "self-coping"  tricks and tips.

     After networking with others as well as trial and error, I've found effective ways to help those with ADD stay on top of finances with a minimum of time and effort. Most of these ideas comes from actual people with ADD as well as some special services that work well for them.  

    In this article, I'd like to share what I've learned from dealing with friends and relatives with ADD. This is not intended to be a debate about ADD but is written from the viewpoint of someone who has two out of three offspring with it, relatives who have dealt with it and a number of friends who also have been diagnosed, some only in adulthood.

     Research backs up the fact that those with ADD tend to have difficulty handling money and planning for the future than those without it (remember, I'm writing about generalities, so if you are one of those ADD people who is super organized, you may be an exception). Also, plenty of non ADD people have trouble with money, too....just not as often, generally speaking.

      SYMPTOMS OF ADD THAT MAY ALSO AFFECT FINANCIAL STABILITY INCLUDE:
1. Trouble with Planning and Organization

2.  Frequent job changes, job boredom and trouble holding jobs (depending on the level of routine and ability to move around and maintain interest in the job).

3. Financial problems - often a symptom of ADD when combined with other factors.

4. Impulsivity, inattention, disorganization and procrastination. This is not a lack of "willpower" or laziness but part of the condition, a complex interaction between biochemistry and areas of the brain that affect attention and ability to focus. 

5. Piles of clutter, paper and bills that are put down in random places, when a new project or activity distracts the person. 

    These are just a few possible parts of Attention Deficit Disorder that can affect financial life. Marital stability is also affected and it isnt hard to see that divorce has a financial impact as well. 

      While this no absolute cure fo ADD, it can be managed and finances can be handled well. In fact, they may up ending up being handled so efficiently that friends will ask for your "secrets".

    In order to maximize the chances of financial stability as well as to manage finances, thes tactics often help:

 1.  Daily planners and task lists.

 2. Not being afraid to ask families and coworker to help out with reminders, if they are open to this. Not being ashamed of having ADD but seeing it as just another chance to think outside the box and come up with creative solutions that suit your personality. :)

 3. Choosing a job that not only suits the person's interest but has the right balance of spontaneity and down time and allows the ability to shift from task to task. This will lessen the chance of job "mismatches" and up your ability to remain in a given job for as long as desired. 

 4. Taking advantage of payment options that allow for "automatic pilot" such as online banking or money management such as Quicken. This reduces paperwork and keeps records of all transactions, automatically balancing accounts.   If possible, try to have payments sent out automatically for known expenses. Possibilities includes electricity, other utilities, gas, phone, credit card payments, insurance payments, home mortages, college savings, etc.

Be sure to have categories for automatic deposits to home maintenance and retirement accounts. Also allow what you can for emergency savings, ideally building up to 6 months of monthly income in a special account. Pay yourself first! Then discuss what to do with discretionary funds.

5. If there is no fee, use one credit card or debit card for all transactions, minimizing paperwork and leaving a record of payments made. If you use a credit card, treat it as cash and pay it off monthly.

6.Don't feel that you have to follow a rigid budget. If you follow Step 4, much of your budget will be automatic. 

7. Don't be afraid to speak with a financial planner to figure out the right mix of assets, investments, etc. to meet your goals and then set the investment plan on automatic. 

8. If your spouse is better at managing finances and balancing the checkbooks, be open to the possibility of letting him or her handle these duties, but be sure to keep the lines of communication open and all account balances viewable. This isn't about power or control but working as an effective team. 

9. Tweak your plan regularly and sit down with your partner (if you have one) to discuss long-term and short-term goals. Then try to put those savings on automatic, too.

10. Focus on the fact that ADD comes with skills and assets and often high levels of creativity, spontaneity and the ability to see different perspectives. Downplay negatives and build on your strengths.

11. Network. One good place to start: 

http://baltimorepsych.com/adhd_links.htm

    Copyright: J. Corn