Creating Financial Independence during a Life Transition

Strategies for Women Rebuilding Their Lives During Major Life Events

I felt a bit of a fraud when I started writing this article. Who am I to give others advice about financial independence? I was going through a major life upheaval though, and I needed to get my finances sorted, or at least in better order. So I did a lot of research, and I’m sharing what I found useful with you in this article, hoping it will be useful to you too.

Imagine waking up one day to find that your financial stability has been destroyed overnight. Whether due to a divorce, the sudden loss of a partner, or an unexpected job loss, the journey to reclaim your financial independence can be both challenging and empowering. This is the story of Susan, who faced such a transition and emerged stronger, using practical strategies to gradually create a stable financial future for herself.

Susan, a 52-year-old marketing executive, had dedicated her life to her career and her family. After 25 years of marriage, her world was turned upside down when she and her husband decided to get divorced. Suddenly, Susan found herself single and solely responsible for her financial future. She felt completely overwhelmed by mortgage payments, college tuition for her two children, and looming everyday expenses.

Instead of succumbing to fear, Susan chose to take control. She sought advice from a financial planner, who helped her develop a clear plan. Susan began by reassessing her budget, cutting unnecessary expenses, and prioritising her financial goals. She took a course on financial literacy, empowering herself with the knowledge to make informed decisions. Within a year, Susan had not only stabilised her finances but also started saving for her retirement.

Susan’s story demonstrates that with determination and a few well-chosen strategies, rebuilding financial independence is achievable at any stage of life.

When I first read Susan’s story, I laughed, it sounded as unrealistic as a fairy tale! Susan and I clearly had NOTHING in common. Each time I decided to organise my finances, I came down with a debilitating attack of procrastinitis.

What got me out of the seemingly inescapable swamp, was setting an hour aside each day to try to get my financial ducks in a row, and gradually the situation went from drastic and desperate to…slightly better.

My 7 steps to a more prosperous financial future:

1. Assessing My Financial Situation:

Had to start here, however depressing it was. I needed a clear picture of my current financial status, so I listed all my assets (very short list), liabilities (long, scary list), income (even shorter list), and expenses (endless list). This helped me identify the areas that needed immediate attention.

2. Creating a Realistic Budget:

I had to force myself to do this, because, apparently, «A budget is a powerful tool for managing your finances.» So I tracked my spending and prioritised essential expenses like housing, utilities, groceries etc, and identified areas where I could cut back. The app YNAB (You Need a Budget) simplified this process and made it (slightly) more bearable.

3. Exploring Income Opportunities:

One thing I realised is that identifying a variety of income streams is essential. You know the saying, «Don’t put all your eggs in the same basket.» In the current financial climate, I think this should be an ongoing exercise, for all of us. It could involve consulting through platforms like Upwork and Fiverr, starting a small business selling products online via Etsy and Shopify, or doing part-time work offering local services. Teaching online courses, writing e-books, and creating digital content can also generate revenue, as can renting out property, equipment, or vehicles. Investing in education and acquiring high-demand skills can enhance one’s earning potential, while passive income from dividends, royalties, and affiliate marketing offers long-term financial benefits.

4. Investing in My Financial Education:

I agree that knowledge is power, especially when it comes to managing money, so I invested time in courses on personal finance, I joined suitable Facebook groups, subcribed to e-mail lists, and followed reputable financial blogs. I discovered that investment options, retirement planning, and debt management can significantly impact one’s financial future.

5. Building an Emergency Fund:

Got to be kidding, I thought. I’m fully aware now that life is unpredictable, and I realise that having an emergency fund can provide a financial safety net. Starting small, my aim is to save three to six months’ worth of living expenses. Eventually.

6. Seeking Professional Advice:

As soon as you can afford it, I recommend doing this. A financial advisor can provide personalised guidance tailored to one’s situation, help develop a long-term financial plan, manage investments, and advise on retirement funding options.

7. Cultivating an Empowering Mindset:

I am convinced that by fostering an informed and proactive mindset, you can empower yourself to make sound financial decisions and achieve long-term financial stability and independence. During my Camino de Santiago Crossroads retreats, I discuss mindset in depth, as I feel that without the right mindset, any attempt to improve your financial situation is doomed before you even start.

Defining, or redefining, your Life Purpose during a life transition is also a game-changer. Knowing your purpose at this time of your life keeps you motivated to improve your financial situation, as it is supported by your values and principles.

Financial Independence FAQ: Navigating Life Transitions

1. Help! I’m going through a major life change. Should I panic about money now or later?

How about neither? While life transitions (divorce, career change, relocation, retirement) can feel like financial free-falls, panic is actually a terrible financial advisor. Instead, take a deep breath and give yourself permission to assess before you stress. Start with the basics: What’s coming in? What’s going out? What absolutely needs to happen in the next three months? Think of this as your financial triage moment. You’re not trying to solve everything today—you’re just getting your bearings. And here’s a little secret: most people going through transitions discover they’re more resourceful than they thought. You’ve got this, even if it doesn’t feel like it yet.

2. I’ve always relied on someone else financially. Where do I even start building independence?

First off, acknowledging this is already a huge step, so give yourself credit. Start by gathering information like you’re a detective investigating your own life. Get copies of all financial documents, understand what accounts exist, and figure out your actual monthly expenses (yes, including that streaming service you forgot about). Open a bank account in your name alone if you don’t have one. Then, create what I call a “financial identity checklist”: credit report, credit card in your name, and understanding of your income sources. The goal isn’t to become a finance guru overnight—it’s to move from passenger to driver, one small action at a time. And remember, every financial expert started by learning what a budget was, so you’re in good company.

3. Should I be making big financial decisions right now, or waiting until the dust settles?

Ah, the eternal question of transition timing. Generally speaking, unless something is time-sensitive (like you need to sign divorce papers or your lease is up), give yourself at least a few months before making irreversible big moves. Your emotional state during transitions can make that “investment opportunity” or impulse home purchase seem more appealing than it actually is. That said, some decisions can’t wait—and that’s okay. The key is to distinguish between “needs immediate attention” (finding housing, securing income) and “feels urgent but isn’t” (completely overhauling your investment strategy at 2 AM). When in doubt, consult with a financial advisor or trusted friend who isn’t in the middle of their own chaos. They’ll help you see clearly when everything feels foggy.

4. How much of an emergency fund do I need when everything feels like an emergency?

During life transitions, the standard “three to six months of expenses” advice can feel laughably inadequate or impossibly ambitious. Here’s a more realistic approach: aim for one month first, then three, then six. If you’re in the thick of transition and can scrape together $1,000, you’re already ahead of half the country. Focus on building what I call a “sleep-at-night fund”—whatever amount lets you stop lying awake, catastrophizing about the washing machine breaking. For some that’s $500, for others it’s $5,000. The magic number is less important than the momentum. Every dollar you set aside is a small vote of confidence in your future self. And yes, it counts even if you’re saving it in a regular savings account while you figure out the fancy high-yield options.

5. I feel guilty about prioritising my financial independence. Is that normal?

Incredibly normal, and also worth examining. Many people, especially those leaving relationships or caregiving roles, feel selfish for focusing on their own financial security. But here’s the truth: taking care of your finances isn’t selfish—it’s responsible. You can’t pour from an empty cup, fund from an empty account, or help others from a place of financial desperation. Think of it like the aeroplane oxygen mask rule: secure your own first. Plus, financial independence doesn’t mean financial isolation. You can still be generous, collaborative, and supportive while also making sure you’re not one emergency away from crisis. The guilt often fades as you start feeling more secure and realize that your stability actually allows you to show up better for the people you care about. So be kind to yourself as you build this new foundation—you deserve financial security just as much as anyone else.

Recommended Reading: 5 Books about Creating Financial Independence

1. “The Financial Diet” by Chelsea Fagan

I chose this one because it’s refreshingly honest about the emotional and psychological aspects of money, especially for people who feel like they’re starting from scratch. Fagan writes with humour and zero judgment about building financial literacy when you’ve been winging it or relying on others. It’s particularly great for transitions because it addresses the identity shift that comes with taking control of your finances. Plus, it doesn’t assume you have a trust fund or a finance degree—just a desire to figure things out.

2. “Your Money or Your Life” by Vicki Robin and Joe Dominguez

This classic makes the list because life transitions force us to reconsider what we actually value, and this book is all about aligning your money with your values. It’s not just about budgeting—it’s about rethinking your entire relationship with money and work. During transitions, when you’re rebuilding anyway, it’s the perfect time to ask yourself the big questions this book poses. The nine-step program helps you see money as life energy, which can be particularly powerful when you’re redefining what your life looks like.

3. “I Will Teach You to Be Rich” by Ramit Sethi

Despite the clickbait-y title, this is actually a solid, no-nonsense guide to automating your finances and building wealth without obsessing over every latte. I included it because during life transitions, you need systems that work even when you’re emotionally exhausted. Sethi’s approach to setting up automatic transfers, investing, and negotiating is perfect for people who need their money to behave while they figure out everything else. It’s also refreshingly honest about the fact that you don’t need to live like a monk to build financial security.

4. “The Single Woman’s Guide to Retirement” by Jan Cullinane

Even if you’re not near retirement, I chose this book because it addresses the unique financial challenges of going it alone—something many people face during major transitions. Cullinane covers everything from healthcare to housing to building community, all without a partner’s income or support. The practical advice about creating multiple income streams and planning for long-term security is valuable at any age, and her tone is encouraging rather than fear-mongering. It’s particularly helpful for those leaving long-term relationships.

5. “Transitions: Making Sense of Life’s Changes” by William Bridges

This isn’t strictly a finance book, but I’m including it because you can’t separate the money stuff from the emotional journey of transition. Bridges explains the three phases of transition (ending, neutral zone, new beginning) in a way that helps you understand why everything feels so hard right now—including making financial decisions. Understanding where you are in the transition process can help you be more patient with yourself and make better choices about when to act and when to wait. Sometimes the best financial advice is knowing that confusion and uncertainty are normal parts of the process, not signs you’re doing it wrong.

“Your economic security does not lie in your job; it lies in your own power to produce – to think, to learn, to create, to adapt. That’s true financial independence. It’s not having wealth; it’s having the power to produce wealth.” – Stephen Covey

It is never too late to take control of your financial future and plant the seeds for a prosperous, purposeful and independent life.