Module 5: Simple Money Management

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. Focus on revenue generation as you learned in Module 2: Revenue-First Tasks, then manage it simply.

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—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

Action Framework

1. 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.

2. 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.

3. 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

4. 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.

5. 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. Apply the pricing boundaries from Module 4: Client Systems to maintain consistency.

6. 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.

7. 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. Use this metric to inform your marketing ROI as discussed in Module 6: Marketing Systems.