Managing money can feel overwhelming, especially for survivors of domestic violence who are working toward financial independence. Creating a monthly spending plan can help you regain control, prepare for unexpected expenses, and build a more stable, secure future.

These financial tips are designed to reduce anxiety and empower survivors in their journey toward financial freedom.

1. Budget with the 50/30/20 Rule

The 50/30/20 rule is a simple way to give our money a purpose. The key is to focus on needs such as food, clothing, housing, and transportation. It’s important to ask ourselves: “Do I want it or do I need it?”. 

Manage your money compassionately:
– 50% Needs: Housing, food, safety essentials
– 30% Wants: Self-care and small joys
– 20% Savings/Debt: Savings and debt payoff

2. Pay Yourself First

Prioritize saving at least 10% from each paycheck. Even if you can only save 2%, it’s a good start. Perhaps one day, it can become 20%. Even small amounts count!

Pro tip: Set auto transfers to your savings account. Automating them helps ease anxiety.

3. Build an Emergency Fund

A good rule of thumb is to save at least $1,000 for emergencies. If $1,000 seems out of reach right now, aim for $500. Start smaller if needed, then build toward a fully funded emergency fund covering 3–6 months of expenses.

4. Safely Rebuild Your Credit

– Pay bills on time, at least the minimum balance due
– Keep balances below 30% of your credit limit
– Seek creditor help during hardships to arrange payment plans or hardship programs they may offer

Pro tip: To avoid paying interest, aim for a goal of paying your balance in full every month. 

5. Protect Your Identity

– Review your credit report annually and dispute any inaccurate information
– Use a credit freeze to prevent identity theft

Pro tip: You can obtain a free copy of your credit report every 12 months from each credit reporting company at annualcreditreport.com.   

6. Maintain a Good Credit Score

A credit score goes beyond obtaining a new loan and applying for a credit card. Some potential employers can access your credit score and take it into consideration during the hiring process. It can also limit our options when we are looking for a new place to rent. Avoid closing old credit cards unless they have high maintenance fees.  

7. Prioritize Essential Bills

Focus on housing, utilities, and taxes first. Medical bills are usually of lower priority. If you are already being sued for debts, seek legal assistance and attend court. If you don’t attend, the creditor will win by default.

8. The 24-Hour Spending Rule

If you need to make a large purchase that costs more than $500 and it isn’t urgent, wait 24 hours before you buy it. This will help you avoid impulse spending.

8. Needs vs. Wants

Before buying, gently ask yourself: “Is this a need, or can it wait?“. Separating needs from wants can help us gain valuable insight into our spending decisions. By being more intentional with your purchases, you can prioritize your financial resources and ultimately make more informed choices that align with your long-term goals.

Final Thoughts

Achieving financial independence is not only possible but also an empowering journey. Start by taking small, compassionate steps toward your financial goals, and be sure to celebrate each milestone you reach, no matter how small it may seem.

For additional guidance on how to secure your financial future and build wealth, check out this comprehensive beginner’s guide. It offers valuable resources such as a net worth calculator to help you assess your financial situation, goal planning tools to keep you focused and organized, and practical tips for tracking your income and expenses effectively.