How to financially recover

[mysterionz]

Weird question, but does anyone have any tips on recovering financially after a drastic money loss? My main source of income is my job and secondary is art commissions (which depends on if I have people interested or not)

For context, I went manic July 2023 and I spent over $2500 on Amazon over the course of a few months. Now I’m barely clinging onto $2K to my name. I do have a job thankfully but the amount I bring home per week depends on how many hours I work.

This week I only brought home $130 because I only worked 13 hours that week. I have hope that my next few paychecks will be better as my hours have gone back up at work.

 

[Neonatal RRT]

Well, the only way I know is to (1) have a reliable and significant income stream, (2) make enough money to save and invest after expenses, and (3) setting and focusing upon both short and long-term financial goals. All three have to come together.

 

[Tom]

Focus on solidifying your jobs as much as you can. Doing what you need to do to make sure they continue, or developing new income sources. But also getting your spending habits well under control is important. Don't become too strict and frustrate yourself, just set and keep to an acceptable target in spending.

 

[Judge]

It's not a weird question at all. One that many many people face given how easy it is to draw credit against net income one may or may not have.

For starters, put away whatever credit source you depend on when it comes to retailers like Amazon. Stick to spending cash only if possible, where you are forced to constantly see (and monitor) the actual cash in your wallet or bank account.

(Pretend to carry on as if you really were *legally bankrupt*.)

Become militant about appreciating what you have as opposed to what you might want.

 

[TBRS1]

If you ever have a job that offers matching contributions to a retirement account, be sure to put the maximum amount in, even if it means you go hungry today.

This will save you later, trust me.

 

[Aspychata]

You are younger, it's a lesson you go thru. l just got rid of my credit cards, but now l have to sign up for one to keep my credit score high. You can't out spend what you don't earn. You need to save a little out of your paycheck ti start an emergency savings, maybe 2,000 for now. Then you can find a safe mutual fund, and maybe you could contribute 50 dollars at least every other month. Just doing this will help you feel better about your future. Maybe think about applying for any free training programs that will train you for a better paying job?

 

[AuAL]

You are younger, it's a lesson you go thru. l just got rid of my credit cards, but now l have to sign up for one to keep my credit score high. You can't out spend what you don't earn. You need to save a little out of your paycheck ti start an emergency savings, maybe 2,000 for now. Then you can find a safe mutual fund, and maybe you could contribute 50 dollars at least every other month. Just doing this will help you feel better about your future. Maybe think about applying for any free training programs that will train you for a better paying job?

An aspirational goal, but when you get there, look at ETFs, particularly index funds, rather than managed funds - they’re generally cheaper.

 

[Shevek]

Do you have things you can sell? Odd jobs you could take on for others? How about food? Can you buy ingredients and cook more to save money? Do you pay to exercise, or get other services that many people do without? One friend has many "nickle generators" - plans for sale and whatnot that only generate a few dollars per month, but require almost no further time. Someone else I know did well by going to the garage sales of people moving, and buying bargains. Sometimes they needed cleaning, or minor repairs, but they could be re-sold at a very handsome profit with a little patience.

 

[Rodafina]

For context, I went manic July 2023 and I spent over $2500 on Amazon over the course of a few months.

@mysterionz
Do you have any ideas how to prevent this in the future? Earning and saving won't help too much if you are prone to excessive and impulsive spending. I think putting some protection against this is in order especially if it is related to manic episodes. Over-spending is a common problem among people with bipolar disorder.

How can I prevent impulsive spending during a manic episode?​

Excessive generosity and spending may seem like a good idea at the time, but it can negatively impact your personal finances. You’re not alone in this.
Though it may not be easy to control urges to spend or give money away, there are steps you can take to help prevent sprees when experiencing an episode of mania.

A supportive inner circle​

Support from those who understand compulsive spending during an episode of mania may help you recognize when your spending becomes a problem. Your inner circle can often identify mania early and can help you safeguard your finances.

One credit card only​

If you have only one card with a low limit, you’ll not be able to spend excessively.

Restricting online access​

Having someone password-protect or restrict internet access may prevent impulsive or potentially consequential behaviors, including online shopping.
An IT professional can set up restrictions through your browser settings or add budget apps and extensions for a nominal fee.

A monthly allowance could be beneficial​

You can create a budget based on your pay periods. Also, consider paying with cash and reserve your cards for necessities.

Can someone pick up your mail?​

Credit companies often send incentives and offers in the mail. If you can, have someone get your mail to filter out the credit offers and retail direct mail.
Another consideration is opting out of credit card offers altogether, using a tool like this. You’ll stop receiving catalogs and email prompts by registering here.

Consider a professional accountant or power of attorney​

If you don’t have someone you can trust with your finances, a professional service can help you budget and curb spending when you’re experiencing an episode of mania.

A spending log can set boundaries​

Having someone you can trust can be a critical part of preventing a spending spree. You can talk with loved ones or friends or get professional assistance. Not only will you be able to limit your spending, but you’ll also have a support network in place during bipolar disorder treatment.

Source: Bipolar Disorder Mania and Overspending: Causes and Recovery

 

[Neonatal RRT]

@mysterionz
Do you have any ideas how to prevent this in the future? Earning and saving won't help too much if you are prone to excessive and impulsive spending. I think putting some protection against this is in order especially if it is related to manic episodes. Over-spending is a common problem among people with bipolar disorder.


Source: Bipolar Disorder Mania and Overspending: Causes and Recovery

One way that works for my wife and I is to limit the amount we have in our checking account. We keep just enough to pay our bills. The rest goes into our retirement accounts, savings accounts, and my personal stock portfolio. We have other credit cards, but we generally do not carry them around but keep them in our house. The idea is (1) this concept of "out of sight, out of mind", (2) make it an inconvenience to access your money, and (3) simply don't have "excess" money available at your fingertips. If the money is already designated for something else, you're less likely to dip into that account and spend frivolously.