How-To Steps to Managing Your Sober Life: Finances and Budgeting

Ongoing recovery is not always easy and can come with financial challenges. Do you have minimal experience balancing your finances or difficulty living on a set budget? If so, you may benefit from extra support. Fortunately, many resources exist to help you afford treatment and additional services related to recovery. Life skills and other tools offered at treatment centers will keep you learning and growing. Do you want to learn how to stick to a budget within your means? Aftercare services for inpatient and outpatient programs often include job placement and educational classes on smart spending and saving.

Breaking Down Your Financial Situation

Treatment and recovery are experiences shared by people of all backgrounds. Each case is unique, and you may find yourself facing challenges that affect your financial stability. Risk factors associated with alcohol use disorder (AUD) and other substance use disorders (SUDs) include lower socioeconomic status and chronic financial stress.

According to Plos One, “Many studies have found that AUD is more prevalent in disadvantaged socioeconomic groups and low childhood [socioeconomic status] is associated with later AUD.” Individuals who misuse substances come from all income levels and lifestyles. Your financial status will impact your ability to receive high-quality treatment and continuing care.

A few things to consider when you break down your current financial situation include:

• All of your income
• The cost of living, including rent and necessities like food
• Outstanding bills
• Available funds
• Possible costs related to ongoing recovery and treatment
• How you feel about your finances
• Automatic or recurring payments

After treatment, you have access to various resources, including job placement services, career counseling, and mental health services. All of these have the potential to impact your financial stability. You will need to learn how to recognize when to ask for assistance. Everyone needs help sometimes, and knowing when to get financial aid will save you time, energy, and stress. Case managers and community-based recovery organizations are excellent resources for finding local assistance programs and opportunities.

Preparing for the Cost of Treatment

You might be in a place financially where you cannot afford treatment. If you find yourself having trouble meeting your bills month-to-month, there are places you can turn for help. However, even with these resources, you may find yourself needing to pay for certain parts of treatment out of pocket. Researching these in advance gives you time to save up for incidental expenses. Some standard costs related to treatment that often get overlooked include:

• Prescription medications
• Transportation to and from the facility
• Communication costs like internet or cell service
• Medical check-ups and individual therapy during continuing care

You may qualify for lower service costs and transportation depending on your situation. However, many people fall into the gray area where they make too much to be eligible for assistance while still struggling to meet the cost of treatment, transportation, and other expenses.

What Are the Expenses of Living in a Sober Community?

Sober living communities like Real Recovery Sober Living give you a safe space to heal and grow while undergoing treatment and following the 12-Step process. However, you will need to consider the costs associated with joining one of these communities, including:

• Essentials of living such as food and toiletries
• Rent or program fees
• Transportation
• Recreational activities or events

You will also need to consider other monthly costs like phone and internet services. Creating a monthly budget makes it easier to find ways to save and pay for these necessities.

The Importance of Having a Budget

Speaking with a professional financial advisor is one of the best ways to break down your finances and set up a sustainable individualized budget. Many organizations, including ones dedicated to advocating for individuals in recovery, offer free consultations and lessons on basic life skills like balancing bills, creating a budget, and smart spending strategies. You do not need any of these things to start a budget, but the more tools you have at your disposal, the easier it will be to identify and deal with any issues. Quickly set up a rudimentary budget in several easy steps.

Quick Steps to Creating a Budget

Below are a few quick ways to start building a monthly budget:

• Make a list of every expense you pay on a monthly or regular basis. Examples include rent, utilities, phone, internet, groceries, car payment, or transportation-related fees. If you have difficulty remembering everything, you can look back through your bank statements for previous months and look for repeated payments you have made. When the amount fluctuates, calculate the average.
• Make a list of things you pay for every month that you enjoy and value but can live without. Examples include entertainment streaming services, subscription apps, games, going to the movies, and eating out.
• Make a list of any upcoming costs like yearly renewal costs for a service you require.
• Once you have all of your expenses listed, add up the total. Afterward, remove everything from the list except the absolute necessities and calculate it again. Subtract the difference between the two totals. You now know how much you need to afford essentials and how much extra you should make each month to afford non-essential items.
• Any amount you make over that can be put in your savings or invested for the future.

Not everyone has a lifestyle that makes budgeting easy. The more variables you have, the harder it is to get a clear idea of what you can expect to pay out or bring in each month. The destabilizing transfer from structured treatment to outpatient care can make it more challenging to ensure you have the mental and physical support needed to achieve financial stability. Making money-saving decisions is one way to cut down on unnecessary expenses.

Identifying Areas Where You Can Save Money

You already have a list of nice but non-essential things you pay for each month that you can remove to cut costs. Now it is time to scrutinize the essentials to look for areas to save money. For example, you might be able to switch to a cheaper phone provider or bundle certain services. When making a budget, every dollar counts. A few common ways to save money include:

• Canceling subscriptions you rarely use
• Choosing less expensive or on-sale items when shopping
• Using a cashback card that you fully pay off each month
• Looking for free alternatives to replace regular activities
• Switching phone or internet services to a lower-cost alternative

Keep a sharp eye on your spending for a few weeks, and you may notice areas where you can save money by cutting back or switching to a less costly alternative. Take proactive steps by setting aside a certain amount of money each month for your savings.

The United States Federal Literacy and Education Commission (FLEC) suggests: “An easy way to save is to pay yourself first. That means each pay period before you are tempted to spend money, commit to putting some in a savings account. See if you can arrange with your bank to automatically transfer a certain amount from your paycheck or your checking account to savings every month.” You remove the guesswork by setting up an automatic transfer of a specific monthly amount. Choose an amount that will not interfere with your ability to pay for essentials and then incorporate it into your monthly budget.

Tips for Financial Stability

Financial stability makes it possible to avoid the stress of surviving month-to-month. You may be financially stable if you have enough money saved to pay six months’ worth of expenses at any given time. According to statistics reported in the CareerBuilder press release titled “Living Paycheck to Paycheck is a Way of Life for Majority of U.S. Workers, According to New CareerBuilder Survey,” less than 30% of Americans have that level of financial security. Unfortunately, it is all too common for workers in America to live from paycheck to paycheck with little or no cushion of savings to help them cover unexpected costs. You are not alone if you feel the pressure of financial instability, but there are healthy ways to cope.

Coping With Financial Stress During Recovery

Alcohol Research Current Review reported that “stress increases the risk of alcohol relapse.” Chronic stress is harmful and can lead to intrusive thoughts, cravings, or backsliding into self-destructive behaviors. To keep moving forward with your recovery, you need to learn to overcome stressors, including financial difficulties, by finding healthy coping mechanisms and making difficult choices about your spending habits.

You may need to change your living environment if you have a hard time remaining accountable for your health, safety, and finances. During early recovery, a few popular options people choose to save costs include temporarily moving in with a family member or joining a sober living community. The structure and support provided in these environments can make it easier to remain financially secure.

Relapse Prevention and Avoiding Financial Triggers

Joining a sober living community can make it easier to avoid being overwhelmed by financial triggers that lead to added stress, anxiety, or relapse. The more people you have in your corner supporting you and providing helpful life advice, the more opportunities you will have to learn and grow. You can learn how to save and keep your bank accounts out of the red by listening to more experienced members of your support system.

If you notice a dangerous trend in your spending habits, reach out to a friend, loved one, or trusted peer. Community-based financial advisors can also assist you in designing a budget and learning what to look for when cutting costs.

You Can Achieve Financial Stability

You can successfully achieve financial stability with a little time and effort. A budget on paper is not enough, but once you dedicate yourself to solving your economic issues and start making smarter choices, you will find it easier to live comfortably within your means. Recovery comes with many challenges, including costs associated with mental and physical healing from the effects of SUD.

State, federal, local, and private funding is available for assisting individuals in recovery experiencing financial issues. Housing, job placement, and other services can lessen the financial load you have to carry during early recovery, which will allow you to focus your energy on getting better and creating the foundation of a healthier future.

Part of being a contributing member of society involves keeping yourself financially stable. Some people have an easier time of it than others, and there is no shame in asking for help with understanding or monitoring your finances. Financial instability is a significant risk factor for developing chronic stress and related issues. The more capable you are of supporting yourself financially, the less stress you feel day-to-day. In the long run, you can save money by moving into a sober living facility like Real Recovery Sober Living, where you have the space to learn how to budget your monthly expenses. You will be required to pay specific fees, and that accountability can help you practice making better choices regarding how you spend your money. To learn more about the services we offer, you can contact us today by calling (727) 290-9156. We can help you become more independent and confident in your sobriety and finances.