WHY FINANCIAL INDEPENDENCE MATTERS FOR WOMEN
Imagine starting over with nothing: no safety net, no savings, and no financial independence. That’s exactly where I found myself when I moved to Canada. I came to study in Vancouver with my ex-husband from Turkey. In our culture, women often have less independence compared to those in Western countries. We’re expected to look after the kids, manage the household, and share everything with our life partners. Personal space, hobbies, or even money for self-care? Those are luxuries we don’t often prioritize.
That was my reality too. Whatever I earned, I contributed to the “greater good”, or so I thought. When I first moved to Canada, I didn’t have any personal savings, and all my money was tied up in my ex’s account. So when the marriage ended, I had nothing. It was a tough wake-up call, but it taught me an important lesson: women need their own financial independence.
While I’m not a financial advisor and it’s not my place to give financial advice, I hope my story helps you avoid the mistakes I made. Financial independence isn’t just about money; it’s about having the confidence and freedom to make your own choices.
Why Financial Independence is Crucial for Women
Financial independence means having control over your money instead of it controlling you. It allows you to make choices that align with your values, reduce stress, and focus on long-term goals like retirement or buying a home. More importantly, it gives you the flexibility to handle life’s surprises, whether it’s an unexpected bill or a last-minute travel need. With financial independence, you’re not just living paycheck to paycheck, you’re planning for the future and freeing yourself from financial stress.
As a woman and an immigrant living in Vancouver, CA, financial independence holds a profound meaning for me. Navigating a new country, often without a built-in support system, quickly highlights the importance of having your own savings. You become solely responsible for your safety net. Women, in particular, face unique challenges, from pay gaps to societal expectations around financial dependence.
Being financially independent means having the security and confidence to make choices without relying on anyone else. I’ve learned firsthand how vital this independence is, especially in moments of uncertainty. Personal savings not only empower you to make better decisions but also protect you in life’s toughest situations.
On a deeply personal note, I know how much financial insecurity can affect mental health. During my most uncertain times, I experienced severe panic attacks. That’s why building financial security isn’t just about money, it’s about safeguarding your well-being.
Avoid Debt, Build Independence
Debt is one of the biggest obstacles to achieving financial independence. When you’re constantly paying off loans or credit cards, it feels like you’re always behind. By avoiding debt or paying it off, you free up more of your income for saving and investing. Even more importantly, you reduce the financial pressure that can cause so much anxiety. Remember, the less you owe, the more freedom you have to decide how to use your money.
Let me share a story I’d rather forget. When I was with my ex, we bought a very expensive 2-seat recliner, and I was the one stuck paying the loan. Even after moving out and working part-time, I was still paying off that loan months later. What a terrible decision, right? I know. We make so many decisions every day, both big and small. But if we took just a second to really think through these choices and how they might impact our future, we’d probably make different ones. Sure, you might be able to afford that payment today, but will you still be in the same position to handle it next year?
Paying Off Debt
If you have debt, it can feel overwhelming to know where to start. How to manage debt for financial independence can be tricky. One strategy that worked for me is the debt snowball method. Start by listing your debts from the smallest to the largest. Focus on paying off the smallest one first while making minimum payments on the others. As you clear off smaller debts, you build momentum, which motivates you to keep going. It’s empowering to see those balances drop, and it sets you up for bigger victories as you tackle larger debts.
How to Build a Strong Emergency Fund
Once I tackled my debt, the next step was creating a safety net for the unexpected. An emergency fund is essential. Life is full of surprises, and an emergency fund is your safety net when those surprises turn into expenses, whether it’s a health issue, a car breakdown, or a job loss. For immigrants like me, it’s even more important to include expenses like plane tickets in your emergency fund as you never know when you might need to fly back home unexpectedly. I recommend breaking your emergency fund into categories like:
•Injuries/Health: X Amount
•Rent/Basic Living Expenses: Y Amount
•Plane Tickets/Miscellaneous Unexpected Costs: Z Amount
By organizing your emergency fund, you’re better prepared for any curveballs life throws your way. It gives you peace of mind knowing you have a plan in place.
Story Time
Story Time
Christmas is supposed to be a happy time, but just two days before Christmas in 2022, I faced one of the toughest moments of my life. I was working my first full-time job in Canada as a marketing specialist at a small company. Everything seemed fine until it wasn’t. Out of nowhere, I got laid off. No heads-up, no explanation. Just like that, I was out of a job.
In British Columbia, you need at least 700 hours (depending on your area) of insurable work in the last 52 weeks to qualify for unemployment benefits. I had only 693 hours. Just 7 hours short of the requirement, I wasn’t eligible for unemployment benefits either. That made things even worse. Suddenly, I had no income, no backup plan, and barely any savings to get by. Meanwhile, I was still trying to pay off debts from a catastrophic marriage. The weight of not knowing how I would pay my bills or find another job was suffocating. I felt lost, but I knew I had to find a way forward.
It took me five long months to find another job. Five months filled with uncertainty, stress, and trying to keep my head above water. But during that time, I made a promise to myself: as soon as I had a steady paycheck again, I’d start building an emergency fund, even if it was just a little at first. I needed a safety net. And trust me, that’s been one of the best decisions I’ve ever made.
Now, I’ll never let myself feel that kind of vulnerability again. An emergency fund isn’t just about money, it’s about peace of mind. It’s knowing that you have options, no matter what life throws at you.
Building Wealth: Start Small, Think Big
Wealth is the accumulation of financial assets, valuable possessions, and resources that provide financial security and the independence to make life choices. It includes money, investments, property, and anything that can be converted into value for transactions or future use. But true wealth extends beyond just material assets, offering individuals the ability to pursue their goals, improve their quality of life, and secure their financial independence.
Financial independence for women is about having security and control over their future. It’s knowing that if something goes wrong, I’ve got the financial cushion to handle it. It’s the ability to pursue my passions and take care of the people I love, without feeling limited by what’s in my wallet. And it’s not just about the numbers, wealth includes emotional and mental well-being too. Having the time, energy, and resources to enjoy life is a huge part of feeling truly “wealthy.”
Future is Here
But here’s the thing: Building wealth and financial independence takes time, but it’s one of the most empowering things a woman can do. Start small. Take a step today, whether it’s opening a savings account or listing your debts. Your future self will thank you. (I did!)
That’s where I started, too. I knew I needed to start saving and investing, but I didn’t want to deal with something overly complicated or time-consuming. After a lot of searching, I came across Wealthsimple. Its ease of use and automation helped me take my first steps toward saving and investing. It’s straightforward, doesn’t make me feel like I need to know everything about finances, and it lets me automate my savings so I don’t have to think about it constantly.
What I really liked is that there’s no minimum balance to start, and the low-risk options made me feel comfortable in the beginning. Starting can feel overwhelming, but tools like Wealthsimple make it easier. It helped me take control of my finances without needing a finance degree, and it might just work for you too.
I wish someone had pointed me in this direction earlier, but hey, now I’m telling you :) When you fund a Wealthsimple account using the link below and my referral code 7PON_A , we could both get $25 🎁 (if you’re in Canada)!
Long story short, financial independence is about having more control, more choices, and less stress. By building savings, paying off debt, and preparing for emergencies, you’ll be well on your way to achieving it. Take it from someone who learned the hard way: it’s never too late to start, and every little step makes a big difference.
