Building a Financial Safety Net: The ADHD Approach to Emergency Funds

Creating an emergency fund is one of the most important financial steps you can take, but for adults with ADHD, it can feel like an insurmountable challenge. Between day-to-day expenses, debt, and the temptation of impulsive purchases, setting aside money for a rainy day might seem impossible. In our conversation with personal finance expert Eryn Schultz on the The ADHD Lounge podcast, she shared some practical, ADHD-friendly strategies for building a financial safety net.

Eryn’s experience as the founder of Her Personal Finance has shown her that ADHD adults often struggle with long-term planning. ADHD impacts executive functioning, making it difficult to plan for future events, especially when the benefits aren’t immediately obvious. This is why many ADHD individuals prioritize immediate needs, such as paying off debt or handling current expenses, rather than focusing on building an emergency fund. However, having money set aside for unexpected expenses is crucial for financial stability, especially for those with ADHD, who may face sudden costs related to healthcare, job changes, or family emergencies.

To make saving for an emergency fund more manageable, start automating the process. Setting up an automatic transfer from your checking account to a savings account can ensure that you consistently put away money without having to actively think about it. This is especially helpful for the ADHD community, as it removes the need for repeated decision-making, which can lead to procrastination or avoidance.

You can also break down the goal of saving for an emergency fund into smaller, bite-sized steps. For example, rather than aiming to save $1,000 or more all at once, try saving just $10 or $20 each week. These smaller, manageable goals are less intimidating and can make the process feel less overwhelming. Over time, these small amounts will add up, and you'll have a financial cushion without the stress of trying to save large sums of money all at once.

With these strategies, the ADHD community can approach emergency fund savings in a way that feels achievable and less overwhelming, creating a financial safety net to fall back on in times of need.