Simple Money Management

Learning Objectives

By completing this module, you'll be able to:

• Implement the Three-Bucket System for financial clarity
• Automate recurring financial tasks to reduce cognitive load
• Create a sustainable weekly money management ritual
• Build pricing structures that minimize decision fatigue
• Track one meaningful metric for financial security

Concept

The ADHD Money Blindness Problem

Money feels abstract until it's crisis-level concrete. You'll focus intensely on perfecting a logo while ignoring overdue invoices. You'll research investments for hours but avoid checking your bank balance. You'll price services based on feelings, not math.

Money management challenges arise because it requires consistent attention to routine details. The solution isn't more complex systems. It's radical simplification.

The Three-Bucket System

Forget fancy accounting. Consider three simple buckets:

1. Operating - Money for this month's expenses
2. Buffer - Money for next month's expenses
3. Growth - Everything else

When Operating is full, fill Buffer. When Buffer is full, fill Growth. Aim to spend from Operating, keeping Buffer and Growth protected. This system accommodates variable focus and energy.

Automation Is Your Executive Function

Every financial task you can automate is one less thing to forget:

• Set aside tax savings automatically (choose a conservative rate for your situation)
• Auto-pay fixed expenses
• Schedule bucket transfers
• Set up recurring client invoices
• Enable invoice follow-up reminders

Manual money management requires executive function you may not have to spare.

The Money Monday Ritual

Consider dedicating one day weekly for money tasks. Monday often works well because weekend reflection can provide motivation. In one focused session:

• Check account balances
• Send invoices
• Pay bills
• Transfer between buckets
• Note concerns

One consistent hour weekly typically beats random financial panic.

Mini-scenario: Rosa, a freelance consultant, used to scramble through invoices whenever cash got tight, often forgetting to follow up on late payments. Now she blocks Monday mornings for Money Monday. She checks her three buckets, sends all invoices, and pays bills in one session. Late payments dropped noticeably over the next two months. Her stress about money transformed into calm confidence, knowing exactly where she stands each week.

Variable Income Reality

Many entrepreneurs experience fluctuating income. Some months bring abundance, others scarcity. Your system should handle both scenarios.

Guidelines for variable income:

• Live on last month's income when possible
• Fill Buffer before spending on Growth
• Define your minimum viable income
• Keep fixed costs stable despite good months
• Maintain simple business systems

Self-Assessment

Check your money patterns:

• I avoid looking at bank balances
• I forget to invoice clients
• I price services randomly
• I spend based on account balance, not plan
• I panic about money but don't track it
• I have elaborate spreadsheets I never update
• I mix personal and business money
• I undercharge because money talks feel hard
• I focus on tiny expenses, ignore big ones
• I make financial decisions based on mood
• I've never calculated my actual hourly rate
• I treat all income as immediately spendable

Action Framework

Step 1: Calculate Your Real Numbers

Why: Objective data replaces anxiety-driven guesswork.

Look at actual bank statements. What do you really spend monthly on:

• Business operations
• Personal necessities
• Everything else

That's your baseline reality.

Step 2: Set Up Your Buckets

Why: Physical separation creates barriers against impulsive spending.

Consider three separate accounts:

• Operating (checking)
• Buffer (savings)
• Growth (savings)

Some find separate banks helpful to reduce impulsive transfers.

Step 3: Automate Key Tasks

Why: Automation handles tasks regardless of your energy or focus.

Set up what works for you:

• Tax savings (pick a conservative rate for your situation)
• Fixed expense payments
• Regular bucket transfers
• Invoice reminders
• Bill due alerts

Step 4: Create Your Money Ritual

Why: Batching reduces activation energy and preserves daily focus.

Block time weekly (aim for same day/time):

• First week: Full review
• Other weeks: Quick check

Add it to your calendar and set reminders.

Step 5: Simplify Pricing

Why: Standard options reduce decision fatigue.

Consider three pricing tiers:

• Quick fix (hourly or flat)
• Standard project (fixed price)
• Premium engagement (value-based)

Standard pricing preserves decision energy.

Step 6: Build Your Safety Plan

Why: Planning when calm enables clear thinking during crises.

Define these numbers:

• Minimum monthly need
• Months of Buffer available
• Cuttable expenses
• Quick income sources

Write this down before you need it.

Step 7: Track One Metric

Why: Single metrics provide clear, rewarding progress signals.

Track days of expenses covered by your Buffer. That's your security score. Watch it grow.

Tool Application

Use Power Blocks for Money Monday:

1. Set a recurring block - Same time weekly
2. Break into micro-tasks - 10 minutes per task
3. Start with easiest - Build momentum
4. Take breaks between - Preserve focus
5. Celebrate completion - Make it sustainable

Do it now: Start a 20-minute Power Block and list your three most important money tasks for today in priority order.

Quick Reference

• Three buckets: Operating, Buffer, Growth
• Automate money tasks wherever possible
• Money ritual: Aim for weekly consistency
• Live on last month's income when possible
• Set aside taxes automatically (choose a conservative rate for your situation)
• Use three pricing tiers
• Track days of expenses covered by your Buffer
• Separate accounts reduce impulse spending
• Variable income needs bigger Buffer
• Simple systems beat complex spreadsheets
• Money anxiety decreases with routine
• Financial focus is limited. Protect it

Reflection Prompts

• Which money task do I avoid most, and what would automating it change?
• How many days of expenses could my current Buffer cover?
• What pricing tier would eliminate 80% of my proposal stress?
• When during the week do I have the most mental clarity for money tasks?
• What would change if I knew my exact financial position every Monday?

Further Reading

• Profit First - Michalowicz (Portfolio)
• The Money Book for Freelancers - D'Agnese & Kiernan (Three Rivers Press)
• Small Time Operator - Kamoroff (Taylor Trade Publishing)
• Your Money or Your Life - Robin & Dominguez (Penguin Books)

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Educational content only. Not medical advice or a substitute for professional diagnosis or treatment.