Personal Finance for People in Recovery From Drug and Alcohol Addiction

Addiction impacts individuals from all walks of life, straining physical, mental and financial well-being. Recovery is a journey towards personal health and a crucial opportunity to rebuild and enhance financial stability. With the right strategies and support, you can regain control of your finances, establish stability and work towards a brighter financial future.

People struggling with addiction to drugs and alcohol are often tempted to prioritize their substance use above living expenses and other financial responsibilities like loan payments and bills. This can have significant consequences and financial impacts:

People who live with a drug or alcohol addiction know that recovery is a lifetime commitment that may look different from person to person. Some people recovering from substance abuse are single, young and on their own, while others have a family depending on them and are looking to rebuild those relationships. Although every situation is unique, there are steps to take to regain steadier financial footing.

Remember to start small — no one tackles finances overnight. List your priorities and work on funding the big things, such as housing and earning an income, first. Setting priorities is one of the first steps to creating a budget. Here are some steps we recommend to establish a solid financial base early in your recovery journey.

As you create a budget to pay down debts, manage expenses and increase your savings, prioritizing recovery is vital. Your budget items should include the necessary resources for your recovery needs. These expenses include counseling services, medications, medical visits and other items and experiences that enhance your physical well-being. If going to the gym or yoga is essential to your recovery, it should be essential to your budget.

Stable housing is a crucial element of maintaining long-term sobriety. You need to find a living environment that will give you the best chance to succeed in your sobriety. The Substance Abuse and Mental Health Services Administration (SAMHSA) highlights that recovery houses are particularly effective in helping individuals at all recovery stages, offering crucial social support and resources, especially early recovery. As part of its housing recommendations for people in recovery, SAMHSA suggests that potential residents and case managers understand the house dynamic and ensure it's a good fit for everyone.

Work can be a trigger for relapse when it's an unhealthy environment. Recognize possible triggers and put yourself in a position to avoid them. If your current job puts you at risk for a relapse, it may be best to seek a new career or employment.

Almost all rehab centers and sober living homes have job placement programs and contacts available. Your county or state may also offer free career counseling services. People in recovery with a criminal record can also get help with job placement. For example, CareerOneStop has job search and skills assessment resources for people with criminal convictions.

Managing your money can be a trigger for relapse, especially if you have disposable income. If cash is a trigger, there are ways to avoid using it. First, set up your paycheck to be directly deposited into a checking account to prevent spending it the moment you get it. Rely on bank or credit cards, specifically without ATM access.

Consider asking someone you trust to co-manage your finances. This person could be a family member, friend or sponsor. This might look like adding to your savings and only making withdrawals with your trusted person's oversight. It can help hold you accountable to a budget while you track your recovery.

Unfortunately, some people battling addiction end up facing criminal or civil cases. While you have the right to an attorney in criminal cases, you'll still face high legal fees if you're arrested for a drug- or alcohol-related offense. These offenses can range from possession of illegal substances to driving under the influence. It's important to pay these off as soon as possible. The government can withhold tax refunds to collect on overdue court fees and judgments.

Creating an emergency saving fund for the future takes time. Still, it's a crucial step in building financial stability and reducing the stress of dealing with unexpected expenses as you make a budget. Start small — even five dollars a month over 12 months adds up. Don't put too much pressure on yourself to save every spare dollar every month. Surprise expenses come up for all of us, but if you include a goal every month, you'll eventually see progress.

Holding yourself accountable for your spending habits in recovery is essential for staying on a budget and sober. Using cash can pose a risk, as it may lead to spending on substances you are striving to stay away from. You can use bank accounts or credit cards to track your transactions.

However, you should only use credit when you know you can pay it back. Credit card debt, fees and interest payments add up quickly and can create more financial stress. True Link offers a prepaid bank card specifically for people in recovery. The sober credit card allows caseworkers, family members or guardians to add money to the card. It limits some transactions and prevents purchases at liquor stores, casinos, bars and other places that could be triggering.

During your recovery, you'll rely on support from family, friends, sponsors and counselors, including financial counselors. These experts can create a plan to help you achieve financial stability post-addiction, guiding you through debt repayment and savings growth. Counselors also hold you accountable for your spending habits.

Some rehab programs and sober living centers offer financial counseling as part of recovery. If your program does not, you can find accredited counselors to help. Most nonprofit counselors belong to one of two national agencies: the National Foundation for Credit Counseling and the Financial Counseling Association of America. You can use these websites to find an affiliated counselor near you.

The cost of substance abuse treatment can vary between $3,000 and $20,000 based on needs and location. According to a national drug survey, cost is the main reason why those struggling with addiction did not seek treatment. However, several options and resources are available to help pay for rehab.

When you begin your search for treatment facilities, ask about financial costs upfront. Facilities should tell you the typical costs for your course of treatment, which services are covered by insurance and which are not and if payment plans are available. Low-cost facilities and state funding resources are available to help you find a treatment option you can afford.

Scholarships and grants offer a beacon of hope, especially for low-income students seeking treatment for substance abuse but facing financial hurdles. Some individual treatment facilities offer grants and scholarships on a case-by-case basis. Most financial aid is provided directly by facilities, so there is no list to search easily.

Your best resource is your community. Ask your local health agency, social workers, churches or charity groups if they have a list compiled. Nationally, the nonprofit group 10,000 Beds works with local agencies when they have openings and provides scholarships to fill those open beds. Most scholarships won't cover the total cost of a program, so ask what's not included. Also, ensure that you complete the program to avoid losing the scholarship and being financially responsible for all treatment.

Multiple reliable resources are available to help you on your journey to long-term recovery, from finding treatment to counseling after rehab.

• Alcoholics Anonymous: The most well-known program to help those in recovery from alcohol abuse offers online tools and links to local AA programs.
• CareerOneStep: For those looking to return to the workforce, the U.S. Department of Labor sponsors this website full of job hunting resources.
• FindTreatment.gov: This website offers a simple search function to find rehab centers, sober living and outpatient treatment options near you.
• National Foundation for Credit Counseling: This agency focuses on financial counseling for those looking to get out of debt or build their first budget.
• National Institute on Alcohol Abuse and Alcoholism: As a department with the National Institute of Health, this agency offers information for those looking for treatment as well as their families.
• National Institute on Drug Abuse: With a focus on research and facts, this NIH website will help you better understand drug and alcohol abuse and the latest research on treatment.
• SMART Recovery: With local meetings and an online community, this national support group offers self-management and recovery training.
• Substance Abuse and Mental Health Services Administration: This government agency is a primary source for finding treatment that matches your needs. It offers a 24/7 helpline for referrals and information.