Managing Finances in Recovery | Banyan Palm Springs

Managing Finances in Recovery

 

In recovery, you may hear a lot about emotions, self-awareness, and spirituality. While these points are important, many people in recovery also have questions about everyday things. This includes things they will need to manage outside of rehab, such as their finances. Many addicts use up their entire life savings to fuel their addictions, leading many with drug and alcohol problems into homelessness, poverty, and debt. Even those in recovery who did not have a previous money problem may find themselves spending money simply for the rush of adrenaline it causes. If you are looking to improve your financial situation after rehab, our Banyan Palm Springs rehab is sharing tips for managing finances in recovery that can help. 

Drug Addiction and Financial Problems 

As we previously mentioned, there are many financial consequences of drugs and alcohol. At the end of the day, drugs and alcohol cost money, and most people with severe substance use disorders will pay whatever they have to so they can get their fix. Unfortunately, this tends to leave them in a deep financial hole.  

Addiction is a long-term disease that intensifies over time. Without drug or alcohol treatment, the individual may continue to spend money to abuse these substances without realizing the damage it’s doing to their health and bank account. Many addicts will go to great lengths to ensure they have the substances they want, including stealing money from loved ones and getting into a chain of borrowing money, as well.  

What is worse is unemployment and addiction go together. This is because it is usually challenging to hold down a job when you are coming to work high, drunk, hungover, or when you are constantly late or do not show up because of substance abuse. There are also various (expensive) legal problems that may present themselves because of your drug or alcohol use, such as separation, divorce, and child custody battles.  

It is also common for addicts to fall into criminal activity, which can also lead to expensive hearings and cases. It is no secret that drugs and alcohol do not do much for your health, so it is no surprise that many addicts also fall into a financial hole when it comes to medical bills. When considering these factors, it’s understandable why many addicts struggle to manage their finances in recovery and even after their treatment.  

Money Management for Recovering Addicts: Tips That Can Help 

Financial assistance for recovering addicts is a hot topic in rehab, as substance use disorders can present numerous money problems. Personal finance is a crucial aspect of life that needs to be responsibly managed. Recovery offers the individual an opportunity to use their newfound skills in many areas of their life, including their finances, to improve their situation.  

But how? Below are some tips on how to manage finances in recovery from addiction that can help you or a loved one. 

Organize Yourself 

The first step to improving your financial situation after addiction is to fully understand the severity of your debt. An effortless way to organize yourself is to make a list of your debts, assets, and monthly bills and then open a bank account. Make sure to detail to whom you owe money, how much income you have, whether you have any savings, and detail the monthly bills you have. This is the groundwork you will need to take the necessary steps to fix your credit score after rehab, work on paying your debt, and improve your finances in recovery.  

Establish Your Financial Goals  

With the information you have, you can determine your financial goals for the next year or longer. These may vary from person to person, so do not compare yourself to others. Some goals include prioritizing debts that need to be paid, building up your savings, increasing your income, and more. Again, your goals are dependent on the nature of your financial situation.  

Make a Plan  

Having a written, organized plan will give you perspective and keep you on track. You can make a list of financial goals or a plan that you would like to accomplish by a certain date. It can look something like this:  

  • Goal #1: Save $1,000 a month from January to May for an emergency fund 
  • Goal #2: Pay off $400 credit card debt 
  • Goal #3: Pay off a $900 loan from family  
  • Goal #4: Pay off a $2,000 medical bills 

The idea is to create a snowball effect in which, as debts drop off, you will have more money to put toward other debts, even if they are larger.  

Create a Budget  

Sustaining a budget is key to ensuring you get your finances back on track and keep them there. This means tracking everything you make and what you spend to find out what you are spending on food, electricity, water, transportation or gas, coffee with friends, and more. Knowing how much is going in and out every month will help you ensure your money is going in and out of the right places. Over time, this steady budget will allow you to manage your finances once you have less debt and more money to spend.  

Do Not Underestimate the Costs of Little Things 

Especially if you have debt, do not overlook the costs of little things that can potentially prevent you from making large payments and knocking out any debts more quickly. Some small expenses that tend to eat away at your budget include:  

  • Cable, magazine subscriptions, phone applications, and other subscriptions or streaming services  
  • Eating out 
  • Getting your hair and/or nails done professionally 
  • Smartphones and other technology 
  • Shopping  

Even if you shop in thrift stores, you are spending more than you should. Remember that every dollar you save and put towards paying off your debt matters. Putting every penny towards debt also lowers the amount of interest that accrues on that debt. In other words, the faster you pay off your debt, the more money you are saving, and the less you are spending.  

Achieve Balance  

If you have been struggling with your finances in recovery, nothing will be as satisfying as finally paying off your debt. Now, the income you make can be saved and go towards things you want. However, going back to our budget, the goal of achieving financial stability in addiction recovery is not just to get out of debt but to learn how to live a balanced lifestyle when it comes to spending, making, and saving money. For this reason, we encourage you to include any additional expenses in your budget to ensure they make sense and that you will not end up back at square one. 

Drug Addiction Help in California 

Financial help for recovering addicts is only one of the many topics the specialists at our Southern California rehab address in treatment. Our facility offers a variety of substance-specific treatment programs, as well as a California detox center that safely and effectively addresses withdrawal symptoms.  

If you or someone you care about is battling substance abuse, call Banyan Treatment Centers today at 888-280-4763 or send us your contact information to find out more about our Palm Springs drug rehab programs 

 

Related Reading:  

What to Do If You Relapse During Quarantine 

The Impact of Financial Stress on Mental Health 

Alyssa
Alyssa
Alyssa who is the National Director of Digital Marketing, joined the Banyan team in 2016, bringing her five-plus years of experience. She has produced a multitude of integrated campaigns and events in the behavioral health and addictions field. Through strategic marketing campaign concepts, Alyssa has established Banyan as an industry leader and a national household name.