ADD ADHD Austin - Tip of the Week - Provided by Dr. Roberta Tsukahara

Note Bene: Today’s tip is longer than usual but can be divided easily into two readings – Paying Bills and Preparing Your Taxes. Let me know what additional information you need on these topics.

Paying Bills
The last tip got you started on bringing order to the Home Office by showing you how to set up a Mail Sorting Station and a Bill Pay Basket. Let’s now begin to get control of paying bills. If you have not yet set up your Bill Pay Basket, do that and then return to this week’s tip.

Paying the bills can be especially anxiety-provoking because the task often reminds us of how tight the money is, or we feel guilty because of bad choices or impulsive spending. It is important to recognize that people are often really avoiding the bad feelings rather than the task itself when they “procrastinate” on paying the bills. And it is a detail-laden task that requires close attention – a challenge for many with ADHD. By employing a mini-relaxation exercise at the beginning and throughout the task, you will gradually overcome the hurdles that interfere with paying the bills.

Now, let’s pay some bills! For those already using an on-line bill pay service, resist the temptation of thinking you don’t need a Bill Pay Basket. You will just need to have fewer stamps in it.

Steps for Paying Bills:

Schedule 30-45 minutes per week for finances. Although you may only need to pay the bills once or twice per month, it is best to have a predictable time set aside each week to review your finances. Here’s why:

Having a routine reduces anxiety and “dithering” and decreases the likelihood of forgetting to pay the bills. (See The Weekly Template for how to establish weekly routines.)
Reviewing your finances weekly helps to prevent them from spiraling out of control, and helps you to become more aware of where your money is going.
Most routine financial tasks can be done in just a few minutes per week, but those minutes turn into hours when we allow ourselves to get too far behind.

Pay your bills online. If you already pay bills online, sit down with your computer and your Bill Pay Basket. You have everything you need and can skip down to #3. If you are not paying bills online currently, consider this option carefully. Here are some reasons:

You save money because you don’t need stamps.
You save time because most bills can be paid automatically.
You save worry because you can receive electronic reminders to pay bills.
You save trees and reduce clutter because you can request electronic bills and statements from most firms.

If I have convinced you, go to your bank’s website to begin using this service. You will be amazed at how simple the process is once you get the hang of it.

Grab the “Bills to Be Paid by …” envelope.

Using the OHIO principle (“Only Handle It Once”), pay the bills one at a time. Use this checklist to make sure you have completed all tasks related to paying a bill.

Is the statement correct? (e.g., Did they credit you for the previous payment?)
Write the check or give the bank directions using self-talk to keep you on task and focused. In other words, talk out loud as you go through the steps to keep from getting overwhelmed and confused. A few deep breaths during this process also help to reduce errors.
Mark the bill paid, including the date and method of payment (check, online, credit card).
File the bill. If you already have a working file system, file the paid bill now. If you don’t, put the bill in the “Paid” envelope.
Bills to be mailed. If you need to mail bills, place them on top of your purse or briefcase NOW so you can mail them the next time you leave home.

When finished, return all materials to your Bill Pay Basket.

Schedule the next Bill Pay on your calendar.

Preparing Your Taxes
Let me say upfront that you will not find here a magic formula for overcoming a backlog of taxes before April 15! Instead I am offering a few ideas to get you ready for this year and some suggestions for gradually reining in the chaos for the future.

Preparing for the upcoming April 15th deadline:

Gather all tax-related papers into a large envelope or box. Ask someone to sit with you while you sort your papers to help you stay on task. Or, use the external self-talk described above as you work. Take regular, deep breaths while working to help reduce anxiety.
If you have paperclips handy, go back through the year’s tax papers again, sorting them into groups (e.g., W2’s, pay stubs, 1099’s, medical bills, charity receipts). This step is not crucial, but it reduces the need to shuffle through papers repeatedly.
If you cannot find all the records you need for your taxes, don’t panic! Virtually any record you need for the current tax year can be replaced or substituted. (e.g., if you lost the 1099 from your bank account, just tally the interest from the online or paper version of your statements).
If you already use Quicken or another financial software package, purchase the corresponding tax prep software and let it step you through the process. Again, ask a friend or sympathetic partner to sit with you through this process.
If you can possibly afford it, consider asking an accountant to do your taxes. This is particularly recommended if you are behind. The money you will pay an accountant can be far less than the penalties and interest that can accumulate when you put off your taxes.
Acknowledge to yourself the embarrassment and guilt you may feel as you imagine taking your taxes to an accountant. Rest assured they have “seen it all!” And tell yourself, because it is true, that you are learning to take responsibility for your ADD by seeking the help you need in hiring an accountant.
Avoid the “extension” trap! This is only postponing the inevitable. It will seem like a good idea until just before the next deadline.

Preventing Future Tax Problems

The Set-Up: If you do not have a file system that is working well for you, that’s okay. We will be getting to that. In the meantime, just add another sturdy envelope marked “Taxes” to your Bill Pay Basket. If you think an envelope is not going to be big enough, designate a box or bin for tax-related papers only. And if you are dealing with more than one year, set up boxes, bins or envelopes for each tax year, making sure each one is clearly marked.
Sorting the Mail: When you sort mail (click on the link for details), handle tax-related mail in the following “two-minutes or less” manner:

Remove the document from the outer envelope.
Note whether any action is required before the filing deadline. If “yes”, put the document in the appropriate “To Be Paid By…” envelope in your Bill Pay Basket. If “no”, put it in the “Taxes” envelope.
Recycle or trash the outer envelope.

Mark Your Calendar: Put a reminder on your calendar NOW to schedule an appointment with your accountant or friend for the next tax year. Put the reminder in early February, and schedule the appointment for no later than March 1. This gives you plenty of time to have received all needed documents, and it is not so late that you feel rushed. Besides, accountants love the early birds!!

Don’t forget to have some fun! Coming up: De-cluttering your office and creating a file system that you actually use.