.svg)
.svg)
There’s a flurry of financial activity in most households across the country in April – a flurry that lasts a few hours or a few days depending on the circumstances. If you are in early recovery, taxes may be one of the first big challenges you face sober, and it’s a good idea to purposefully view the process of dealing with finances as an opportunity to create positive structure for the rest of your recovery.
How? It’s true that money doesn’t buy you happiness, and it certainly won’t buy you sobriety. But when you have money, you have choices – choices in where you will live, the kind of food you will buy, and what kind of job you will take. And all these choices can impact your ability to stay clean and sober for the long-term.
Ready to get your finances in order and give yourself another tool to manage your future? Here’s how:
10 Things You Need to Know to Master Your Finances
1. You must have goals
Just like you have goals in treatment that help you to define what it is you want to accomplish, when it comes to your finances, you have to know what you want and be able to articulate that. It may be something simple like, “I want to save $1,000 for an emergency fund,” or “I want to be able to pay my rent every month in advance.” Whatever it is, know what you want to do so you can budget accordingly.
2. You cannot avoid having a budget
In order to accurately know what you have coming in every month and where all your money is going, you are going to have to spend a month tracking every single dollar you spend. Did you get quarters for the laundromat? Write it down in the household supplies section. Did you spend $2 on a bottle of water? Write it down in the food category. No amount is too small. Though it may seem tedious, if you don’t know where your money is going, you won’t be able to make it work for you.
3. It takes work
This isn’t necessarily going to be easy, but like everything in recovery, it is worth the effort. After you track your budget for a month, identify the areas where you can cut back. The more you don’t spend, the more you have in hand to achieve your financial goals.
4. Success is in the details
Writing down where every dollar goes and cutting back on unnecessary spending is all about the little choices in life. When you buy a birthday present for a friend, do you have to buy the big gift bag and oversized bow? When you get coffee, if you don’t make it at home, can you get the small cup rather than the large or opt for a black coffee instead of an expensive latte? It may seem like a small thing, but it’s the small things that add up.
5. Habits make a difference
Break down those categories on your budget so you can really define where your money is going every month. Know what exactly is going into that entertainment category and how often. Is half your food budget being spent on pizza delivery or takeout? Do you have five different TV streaming services and cable? Consider some of the habits you have that contribute to your spending and how a few small changes can add up to big budget cuts that will really drive you closer to your financial goals.
6. There’s an app for that
Not interested in budget forms or Excel spreadsheets? There are a number of different apps, many of which are free of charge, you can download to help you manage your budgeting from your phone and even a few apps that will send you inspiration throughout the day.
7. There are a ton of resources available for free
Trying to cut your entertainment budget but still want to have a good time? Head to the library and reserve some movies for free rather than spending money on cable. Need help figuring out how to manage your tax forms or how best to budget your income? There are a number of nonprofit organizations willing to help you do just that, free of charge.
8. It’s good to have a backup fund
As you go through the process of saving for your financial goals, it is a good idea to have an emergency fund to help you. Somewhere between $500 and $1,000 will help to make sure that you are not caught off guard if emergency strikes.
9. An advisor can help
If you are managing larger sums of money or facing off with the IRS about back taxes or unpaid penalties, it can be helpful to connect with a professional who can help you. Many are available at low-cost or sliding scale prices, and in many complicated cases, you will definitely get your investment back in advice and money saved.
10. Fall off the wagon? Climb back on
So, you committed to your budget and then had a couple weeks where you went on a spending spree, going out to eat every day and buying everything that wasn’t nailed down? Just like in recovery, when you lose your path, whether it was a one-time slip or a binge that lasted for weeks, you always have the opportunity to turn it around and get back on track.
Look for Financial Assistance Programs
If you are unable to work during recovery, you may be eligible for financial assistance programs. These programs can help you pay for rent, utilities, and other essential expenses. Some programs are government-funded, while others are run by non-profit organizations.
Some resources to check out include:
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Temporary Assistance for Needy Families (TANF)
- Low-Income Home Energy Assistance Program (LIHEAP)
- Medicaid
Consider Crowdfunding to Help with Medical Expenses
Crowdfunding has become a popular way for individuals and families to raise money to cover medical expenses.
Websites like GoFundMe, Kickstarter, and Indiegogo allow you to create a campaign and share it with your friends, family, and social media followers.
Tips for a successful crowdfunding campaign
- Tell your story: Explain why you need the funds and be transparent about your medical condition and how the money will be used.
- Use visuals: Share photos or videos of yourself or your loved one to help people connect with your cause.
- Do your research: Look at other campaigns in similar situations and see what worked for them.
- Be aware of fees: Be aware of any fees associated with the platform you choose, as well as any tax implications.
It's important to note that not all crowdfunding campaigns are successful, so it's essential to do your research before creating a campaign.
While crowdfunding should not be relied on as the sole source of funding for medical expenses, it can be a helpful tool in supplementing other sources of financial assistance.
Seek Advice From a Financial Planner
Managing your finances during recovery can be overwhelming, especially if you are dealing with medical bills and a loss of income.
How a financial planner can help
Seeking advice from a financial planner can help you create a customized plan to manage your finances and achieve your goals.
A financial planner can help you:
- Understand your current financial situation
- Identify areas where you can cut back on expenses
- Create a budget that works for you
- Provide guidance on how to invest your money and plan for the future
Choosing a financial planner
When choosing a financial planner, look for someone who is certified and has experience working with clients in similar situations.
You may also want to consider working with someone who specializes in medical expenses or disability planning.
Remember, seeking advice from a financial planner does come with fees, so make sure to discuss costs upfront before committing to working with them.
However, the benefits of having a solid financial plan in place during recovery can far outweigh the costs.
Conclusion
Recovering from an illness or injury can be a difficult process, but managing your finances can help ease the burden. By creating a budget, looking for financial assistance programs, getting a side hustle, taking advantage of tax deductions, and building an emergency fund, you can master your finances during recovery and come out stronger. Remember, the key is to take things one step at a time and focus on making progress.
What will your first step be to put your finances in order and shore up your ability to make positive choices for yourself in recovery?
