ADHD Budget Workshop #1 Income & Fixed Expenses

Establishing a budget doesn't need to be an uncomfortable experience. Once the basic elements are in place and you become familiar with the process, you'll be pleasantly surprised at how easy it will be to manage money.I've created a spreadsheet on the reversed budget methodology, which you can find under the resource links at the bottom of the page to download and follow along.The first step in setting up a budget is determining your net income and expenses.Identifying Your Net IncomeIf you are an employee, your paystub will show your net income monthly, semi-monthly (every two weeks), or bi-weekly (26 paychecks per year). For bi-weekly, multiply your net paycheck income by 26, then divide it by 12.If you have a variable income, you can refer to episode 36, where we covered that topic. For including a spouse or significant other, follow the process above, then add their monthly net income to yours.Identifying Your Net ExpensesMany of my clients start to pick up a lot of momentum in the stage I call “Wants versus Needs”.On the spreadsheet, you will see five expense sections:Fixed Needs - an expense that comes out of your bank account regularly, like your home mortgage, a car payment, or a utility billFixed Wants - food, clothing, and entertainmentDebt Payments - credit cards and personal loansVariable Wants – dining out, and vacationsVariable Needs – costs that vary or are unpredictable, like car repair and medical billsAt the end of this stage, you will have separated all of your needs from your wants and identified all your debt payments in one place, which will help you understand how to balance your spending and help you diagnose areas where you can improve. Resources:Link to my Google Docs Budgeting Spreadsheet (click here)Managing a Variable Income with an ADHD Brain - Episode 36 (click here)Want to work with me?Check out my ADHD Planning & Coaching service.Help Me Out!If you enjoyed this podcast, the best way to help me is share it with a friend. Reviews and ratings are also appreciated:Click here to leave a review on AppleClick here to leave a review on my websiteGive me five stars on SpotifyHelping ADHD'ers unleash their financial potential through planning and coaching.DeWittCM.com/adhd to book free discovery sessionHead over to our YouTube channel for the full experience on future episodes.Learn more about ADHD-friendly financial coaching Follow me on YouTubeSubscribe to the newsletter