Reverse budgeting is the most ADHD-friendly way to down spending money into different categories.

Tracking your expenses and coming to terms with where your money's going is essential in developing a better relationship with your money. Apps - like Honeydue - are great tools to begin budgeting.

The most important part of reverse budgeting is identifying your goals. When you get your paycheck, put a portion of that money toward your goals first. The remainder will go toward your expenses. Any money left over is bonus money and is up to your discretion to spend or put back toward one of your goals.

Debit Cards vs Credit Cards

A debit card gives you the tangible feeling of spending real money instead of a credit card, which can feel like fake money that isn't yours.

Once you hit zero, you're out of cash until your next paycheck unless you use a credit card. And if you're using a credit card, you know you've gone over your budget.

Over time, as you become more familiar with your spending habits, you can adjust your categories to avoid falling short. Putting in the work ahead of time will increase your chances of being successful.

Use a Balance Sheet

A balance sheet is a list of your assets, liabilities, debts, and money you have in savings or investments and helps illustrate if you’re on the right path to accomplish your goals.

After you've created that list, decide what the first item on that list you need to address, such as a high-interest credit card, building an emergency fund, or starting an investment account. Putting in the work ahead of time pays off. The last thing you want to do is dip into your savings or any cash reserves you've set aside as a buffer.

ADHD brains loves having a buffer!

Using a balance sheet will also help you take control and feel empowered having control over your money. Once you get the clutter of money stress out of your brain, you have a whole world of opportunity.

Listener Question: Managing a One-Time Gift of Money

"My father has always been working class. He wants to provide for me what he never had, a leg up in life. Now that I'm coming of age, I'm about to receive a one-time gift of more money in assets than I've ever seen in my life. I want to honor the spirit of his action. What can I do to make sure I can trust myself and not treat this like I have every other windfall?"

I recommend having a conversation with your father to understand why he's giving you the money and if he has any expectations on what he would like you to do with it.

Another suggestion would be envisioning what you want out of your life in 5-20 years, and find a way to put the money to work in a way that's going to help you achieve your unique dreams and goals.

If anyone out there has a question for me, send it to me at ADHDmoneytalk.com. Have a great rest of your week. Keep on keeping on, and we'll talk to you soon.

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Jeffrey C. Hooke, "The Myth of Private Equity: An Inside Look at Wall Street's Transformative Investments" (Columbia Business School, 2021)