Justfor1

Not having too little but too much money. I have had an ongoing lawsuit in Federal Court that has been going on for 2 years & it looks promising that I will get it by the end of summer. I can't get into details but it will be well into 5 figures. I suppose to some people that isn't much but for myself living on food stamps, free clinics ect... it will be a lot of $$$. Many people are predicting my relapse and the end of me if I obtain this money. Certain family members do not want me to win and others feel I'm not entitled to because "it wasn't that big of a deal." Being flat broke has been a trigger for me to hit the bottle also. How have you guys manged finances in recovery????

Fandy

make a budget and stick to it....write down what you spend and why....tuck a good portion away in an interest bearing account and do not touch it.

i took the $$ i had been spending every month and for the first few months, turned it into good quality groceries and began cooking and bring lunch from home each day with the leftovers. caught up on my bills...then i started making double principal payments on my mortgage every month.

it is no one's business if you win a lawsuit, don't tell the naysayers anything...use the $$ to help keep yourself on track and free of worry.

Anna

My advice is to believe in yourself. You know what you can handle and what you can't. I wouldn't worry about other people's opinions.

Why don't you make a plan for the windfall money. Set aside some for savings and make some choices about what to do with the rest of the money. Do you want to move, buy some new clothes, take a holiday?

Justfor1

I don't think I would waste money on alcohol/drugs like I did for most of my adult life. I'm afraid I might start gambling heavily or engage in other "activities" with the windfall of money. I could blow money fast in a casino. I would definetly buy a used car, however, I need my license back first.

Fandy

if gambling is a big trigger for you...don't even go near a casino/racino/race-track/otb.

the odds are against you in those places.

CarolD

Hi everyone...
Posts have been removed because of improper links
we do not promote any specific sites or allow
links to commercial ones.

do use PM's to contact each other with info you think useful.

As always ..shareing your experiences is the best way to use SR.
:

lillyknitting

Ican relate, a massive part of my alcoholism was spending, big time, but on credit cards and I run up a huge, life damaging debt, to such an extent that I will never, ever get out of debt until I die!!! My sponsor tells me the obsessive spending was/is all part of my alcoholism. But.....my life changed totally about two months ago and I was unexpectedly left some money by my dear cousin. I was very close to her all my life and she knew everything about me, my drinking, my marriage, my spending etc, and apparently was very worried about me and left me in her will. This has enabled me to get out of debt and change my life considerably. I can say I have spent a little on luxuries but the remainder goes on clearing my debts and the relief I can tell you is immeasurable. I say to you, live a little, but take care and be cautious, as my may never, ever have money worries again if you are sensible. Good luck x

Latte

My husband manages the finances. It keeps both of us happy and sane.

I have a WalMart money card that I use as a credit card in emergencies.

That.is how I manage my finances.

It means I have to be pretty organized and helps to keep me truly humble.

AmericanGirl

Hi Justfor1. I agree with Anna and Fandy. Make a plan. It sounds like you are worried about being compulsive. The answer is a plan. Even if the plan is to blow X amount (something reasonable I hope) and save Y amount, that's still a plan and will protect you from what you fear might happen.

You might consider investing whatever you want to save in a way that will incur a penalty if you decide to take the money out early, like a Certificate of Deposit. That way you will have added incentive not to act compulsively with the money.

nandm

At 6 months of recovery I was involved in a serious accident that left me unable to work for over a year. I went from making $30/hr to welfare that did not even cover the cost of rent for my children and I. I was left with over 100,000 in medical bills. I had bills from before the accident that were substantial and would have been fine if my income had not dropped to nearly nothing. When I did go back to work it was not in my previous field as I could no longer tolerate standing for lengthy periods of time or lifting. The job I had to take was making less than half what I made before. I had creditors at my door, my car was repossessed, etc.... Creditors were unwilling to settle for less than the total bill. They were threatening to garnish my checks. If they had garnished my checks there was no way I could have afforded to pay rent to keep my 3 children and I from being homeless. I saw no way out but bankruptcy. I would never encourage anyone but in the most dire position to claim bankruptcy I feel that it sometimes is needed. It was a complete blow to my pride and self reliance which in some ways was a positive thing in my sobriety. It was definitely a lesson learned.

I do encourage you to make sure you have a plan to pay off your creditors if and when this money comes through. Pay them first. There is nothing like the feeling of not owing money to anyone. Then if you have anything left invest it in a long term investment like a CD. If you are then worried about the amount of money you will then have incoming each month then make a budget and put in that plan to save x amount of dollars each month so that you do not have too much to spend. Plus you have the benefit of having money set aside for emergencies.

Those are the things I would plan to do if I were in a position of any amount of a settlement.

Take care and I hope things work out for you.

Justfor1

I can relate to the bankruptcy. I filed for it in 2003 and will probably have to file yet again. This time though I don't feel as bad because it is 90% medical bills when they would scoop me off the streets of Chicago high or drunk and take me to the ER. I have over 25 admissions to one hospital alone. I accept that my credit will probably never be good but I'm just grateful that I survived.

soidog

First of all, congrats on the windfall! Don't feel "guilty" about getting $ from a lawsuit if it is deserved. Definitely don't let any haters try and spook you. Its likely jealousy.

Sobriety issues aside... becoming financially literate is almost a requirement in this day and age. I'm sure we all know people who have made poor financial decisions which end up wreaking havoc on their lives. I know I certainly do. And I say this with humility since I have definitely made some bad decisions financially as well. Some people like to listen to Dave Ramsey or Suze Orman, etc. In my opinion they give pretty solid advice, and will advise you to pay off your debts, build an emergency fund, sock away enough for retirement, save for a child's college education, etc. Based on your needs and the amount of money you will earn, its really a personal situation and depends on how you want to use your money, but those are generally the main pillars of financial stability.

If you are worried about the temptation of spending, I would agree that a long-term CD may be a good bet. Thing is, CD rates nowadays are TERRIBLE since the interest rate is so low. In some ways, it almost makes more sense to pay off any debts you might have (depending on what their interest rate is) than to buy a CD. If you can hang on, I would encourage you to wait for them to raise the interest rate (probably later this year I am guessing depending on the state of the economy). You can get a much better return by putting money in a mutual fund or ETF, or for that matter any stock. All these things of course do have higher amounts of risk though, so its definitely not for everybody.

Me personally, after everyday expenses I divy up my income into paying for retirement and paying off my school loan, then I put a large chunk into a savings account for medium term savings, which includes my emergency fund, and with whatever I have left I put in an investment fund and trade stocks. LOL, not for everybody but it works for me.

MrDavid

I do the best with what I have and do not worry if I'll run out or not. My financial needs are important and can improve my way of life if vested properly; my real concern, however, isn't a foundation built on a proper investment strategy, but one built on a proper footing, which -for me- is the solid ground of lasting sobriety -instead.

~God bless~

ItWillBeWorthIt

Justfor1, is there someone that you will trust without question to help with the management of your finances? If so, you may consider putting it into a bank account where it takes the two of you to sign to get money out. But, you would need to trust that person VERY much.

I share this because I had a relative that ask me to be the second person to sign on his bank account - he got a big payout for an industrial accident. He would also put his paycheck into that bank account.

He couldn't handle money - he had a problem with spending money on anything, girls, gambling, drugs, alcohol, etc. We were scared he would die if he got all the money at once -- he agreed. The relationship did work, but only because he trusted me with his life.

Just wanted to share an experience I was involved in... and I wish you the very best.