While it may be true that money can’t buy happiness, not having control over your finances or handling bills or unexpected expenses can make achieving happiness a challenge. Dealing with the stress that comes from a lack of money or an inability to manage it is one of the biggest hurdles that many of us face. For those who struggle with addiction, money can be a significant trigger—both not having it or spending it on the wrong things.
What is Money Management?
You don’t need to be a business major or an accountant to learn how to manage your money effectively. Money management may be as simple as keeping track of your income on a monthly or weekly basis, but the more thorough you are, the more benefit you will gain from monitoring and controlling your finances.
An excellent first step is to make a visual representation of your monthly income and bills, whether it be on a spreadsheet or paper. Looking at it this way will allow you to see where your money needs to go and how much of it you can spend. After subtracting the total of your bills from your income, you’ll have an estimate of your remaining money for that month and can move into budgeting it. Allocating set amounts of money to different things like food, gas, and other necessities will make it harder to spend more than you need to or should.
Keeping a comfortable amount of money in your checking account for non-essentials is important. Still, most financial advisors will tell you that putting as much of your money as possible into a savings account is the best way to maintain or reach financial success. Money placed into a savings account can be used to pay for unexpected emergencies and invested later on into things like a new home, a car, or college expenses.
Spending Within Your Means
There’s nothing wrong with treating yourself to a restaurant, movie, or new pair of shoes. Spending money on non-essentials can be a means to have fun or reward yourself for the hard work you put in to earn that money. However, having too much money in your wallet can enable you to spend it on harmful things like narcotics or alcohol.
Extra spending money can also be budgeted to leave no room for purchasing substances. One way to avoid spending extra money on substances is to keep specific non-essential purchases in mind and only have that amount of cash accessible or on your person when you leave the house. This is also an excellent way to spend money on non-essentials while staying within your means.
It can be tempting to charge everything to a credit card, but any money you spend on a credit card increases by whatever your interest rate is, and you will have to pay all of it back. If your wishlist includes a new TV or a shopping spree, consider setting money aside until you have enough saved up to afford them. Most Americans are tens of thousands of dollars in debt, and monthly loan payments can add up fast. Attempting to spend money outside of your means by taking out or loan or getting a credit card means that you will have less money later.
Why Should I Save Money?
Aside from having emergency and investment money, having a savings account can result in many benefits. Most savings accounts through banks and credit unions acquire interest over time, meaning that the more money you have in savings and the longer you keep it there, the more money you’ll earn. By simply not spending, you start earning.
Having a goal or dream for the future can also be a great incentive to begin putting your money into a savings account. Many of us can think of things that we’ve always wanted but have never purchased because we just don’t have the money. By reducing your purchases and putting that money into savings, you’ll start seeing those dreams becoming closer.
What is the Relationship Between Money and Addiction?
Financial stress is one of the main reasons that people begin using substances. Without having healthy ways to relieve stress, the use of substances can take over and quickly lead us to habitual use that becomes an addiction. Managing your money is one way to ease that stress.
Having an addiction can also lead to financial stress, often creating an infinite loop that can be hard to escape. Addiction reduces our ability to make healthy choices, and the need to use can lead to spending money on substances rather than ensuring we’ll be able to make this month’s bills. As your addiction continues to suck money out of your wallet, your financial situation becomes even more unstable, and the risks of not having enough money rise.
Recognizing that you may be caught in this loop can help you choose to receive treatment. Continuing to use substances to cope with financial stress will only continue to make your situation worse. Addiction can amplify other stressors and also fuel them. Before you can take care of the financial situation, you have to take care of your addiction. The endless loop of money and addiction can’t be solved by adding more money; the only way out is by removing the addiction.
Managing your money can help you remove the stress that can lead you to substance use. By taking control of your money, you not only take care of yourself financially but mentally as well. Financial instability can be a cause and effect of addiction for many people, leaving them in an endless loop of self-destruction. If you are struggling with your addiction and ready to receive help, call Rancho Milagro at (951) 526-4582 to discuss your treatment options. Rancho Milagro is located in the secluded hills of Temecula, CA, and offers both inpatient care and detox to those who qualify. We’re home to an affectionate group of rescued farm and therapy animals as well as a compassionate care team that is committed to your recovery. At Rancho Milagro, you’ll be offered an individualized treatment plan that fits your personal needs because we know that there is no one path to recovery.