Money Management

Keeping track of your money and keeping to a budget (called "money management") can be hard at the best of times but can be especially hard if you are having mental health problems. The situation can be made worse if you have been unable to work and have a limited income. There are steps you can take to make as much money as you can and keep to your budget. Learning how to manage your money is empowering and can give you more choices in life.

You can take a computer based, on-line course called Money Management at the Federal Deposit Insurance Corporation (FDIC) or you can call 1-877-275-3342. The course will help you learn how to manage money.

How your agency can help

Community mental health agencies can help you learn how to manage your money and get control of debt. Let your mental health worker know if you would like to learn how to manage your money better. Put it on your recovery plan. Set goals for yourself with small steps towards reaching them.

How peers can help

It can be helpful to talk with somebody else who is in a similar situation; who also has a mental illness; is living on a small income; and has figured out ways to make the most of their income. All of the peer support specialists have learned to do this and can share helpful tips with you on how to reach your financial goals. Find out more about peer support services.

How Representative Payees can help

Sometimes, people who have a mental illness experience times when they are unable to manage their money and unable to meet their basic needs for shelter and food. If this happens, sometimes Social Security will decide for them that they cannot safely manage their money. Sometimes people decide this for themselves. Representative payees are helpers that will manage money for someone who is unable to do so for themselves. Usually, this is a short-term solution.

Most community mental health agencies can act as representative payees or can make referrals to other organizations that can. Find out more about how representative payees work.

If you have a representative payee and would like to have control of your money, let your mental health worker know that you would like to add that to your recovery plan. Together, you can make a plan to learn the skills you need to be successful.

Budgeting helps lead to financial security

One of the first tasks in managing your money is knowing how much money you have and how much money you need to spend. This is called creating a budget. Having a budget helps you understand where your money is coming from and where it is going. It will also help someone else understand your finances if you decide to talk about your money management plan with them.

Financial stability means you have a steady income, enough to meet your basic needs for food and shelter, and you have learned to manage your expenses and balance your budget. From there, you can begin building financial security.

Security means having some savings for a rainy day, an emergency or even a vacation! It is possible, with careful, creative methods, to save a little each month. Having even a little savings can reduce stress, provide a sense of well being and hope for the future. There is also help available to save for bigger expenses like going to college or buying a home. See below for some ideas and resources about how to increase your income and reduce your expenses.

Getting Organized

Just getting organized will help. You will need a calendar. On the calender, note the dates when you have to renew or apply for benefits, file for your taxes, or other income related events. Here are the steps for adding your expenses to the calendar:

• Open your mail and file all your mail in the same place each month. Recycle the junk mail. Put your bills in the file, in order of the date the payments are due. Call this your "Bills Due" file. It can be a box, a drawer or just a grocery sack in the closet. Putting a rubber band around the bills can help to keep them in order.
• On your wall calender, mark the date five days before the date your payment is due, and the name of the bill.
• Each day, check the calender. If you have written the name of a bill on that day, get the bill out, write a check for the amount due, tear off the bill (keep your portion of the bill/statement), stick the bill and your check in an envelope, put a stamp on it, and put it in the mail.
• On your portion of the bill; write on it the date you made your payment, the amount, and the check number. Save the paid bills in a "Bills Paid" file, just in case you have to prove you made a payment.
• If you think you might not be able to pay a bill, call the company/office/person that sent you the bill and explain the circumstances. Offer to pay something, even $5. Usually, you will be allowed to pay a little less or to stretch out the payment date. Write down the name of the person you spoke to, the date you talked and a confirmation number of the conversation, if there is one. Put the bill back in the "Bills Due" file and mark it on your calendar.

Ways to Increase your income

• Get a part- or full-time job. It is possible to earn wages and keep your social security check, medical coupon, and the other benefits you need. Get more information.

• File your income tax report. If you have even as much as 1 dollar in earnings you should file a report. Many people who live on a low income are eligible for cash back from the government even if they don't owe any income tax through a benefit called the Earned Income Tax Credit. United Way in King County provides income tax preparation assistance and help with the forms for Earned Income Tax Credit. Find out more.
  
• Consider Investing in an Individual Development Accounts (IDAs). This is a way to save the money you earn for important goals such as starting your own business, going to school, or buying a home. United Way helps people who are living with disabilities to apply for and manage IDAs and adds dollars into individual IDA accounts as a match. Find out more about IDAs and if you are eligible at United Way.

Reducing your expenses

You may qualify for other assistance or benefits. The State of Washington has developed the Self-Sufficiency Calculator. One of the things the Calculator can do is help you find out if you are receiving all the benefits you are entitled to. Find out more about the Self-Sufficiency Calculator.

There is other assistance available, such as help with heating costs. See the contact information below:

Telephone or Voice Messaging Assistance:

If you cannot afford to have a telephone or need a messaging system, the Washington Telephone Assistance Program (WTAP) provides assistance to low income households who are without telephones. WTAP pays for some or all of the cost to start your phone services as long as there is already a phone line going into your home. You will not have to pay a deposit. Basic local phone service is $8 a month plus taxes and fees. For people who cannot get a telephone, WTAP will also provide a voice mailbox. You qualify for WTAP if you receive any financial assistance from the Department of Social and Health Services (DSHS) such as: food stamps, Supplemental Security Income, General Assistance Unemployable or Temporary Assistance to Needy Families.
To apply, call your local telephone company. You will need your DSHS client ID number. If you do not know your ID number, you can find out by calling, 1-888-700-8880.