Ultimate Guide to Financial Independence for Women Over 40
Challenges that Women Face
Financial independence is about having the resources and flexibility to live life on your own terms.
Many women over 40, who had the necessary support or were determined enough to pursue a high-flying career, are currently at the top of their game and reaping the financial rewards they so fully deserve.
There are many others, because of life circumstances, had to make difficult decisions of prioritising other things, such as family over their ability to earn an income. A very noble move, because at the end of the day, aren’t human connections all that matter anyway?
Unfortunately, in a world such as ours, the odds are stacked against women when it comes to building financial security for themselves. In general, women save less then men because women earn less than men. The gender pay gap is real, with women earning, on average, 84% the wages of men. The drivers behind this reality are systemic and complex.
Striving for financial independence can feel daunting, especially if you’ve spent years prioritising family life or managing household responsibilities. However, this stage of life offers unique opportunities to reset your financial trajectory and build a secure future.
This guide covers my take on the essentials of financial independence, including budgeting, saving, investing, and exploring side hustles. It’s what you need to empower your financial journey.
Budgeting and Saving: Laying the Foundation
The most prudent lesson ever taught is to cut your coat according to your cloth. At this stage in life, financial obligations can be extensive—mortgages, children’s education, healthcare, or even caring for aging parents. Such demands make it essential to have a sharp, discerning eye on everyday spending. It's about knowing your income, prioritising needs over wants, and making conscious choices that align with your financial reality.
Whether it’s avoiding impulse purchases, downsizing expenses, or renegotiating household bills, staying mindful ensures your resources are used wisely. By embracing this principle, you create room for saving, investing, and achieving financial goals without feeling overwhelmed by unnecessary debt or financial stress.
Micro-actions to take today!
Start tracking your expenses, every day for three months straight. This is you collecting data (on yourself!), for future analysis. You could use something simple like Excel or go all out and use a budgeting app.
Think about how your ideal financial reality looks like. Is it simply to be debt-free? Is it to see the kids through college? Is it so that you can indulge in all the online shopping in the world and not have anyone judge you? And then decide on how much you would need to get there.
Brainstorm ideas that could help you achieve your desired financial reality. It could be as simple as finally applying for that promotion you know you deserve. Or it could as complex as quitting your job and becoming a content creator.
Building / Diversifying your income streams
Whether you are already generating a good income and and looking to future-proof your wealth or re-entering the workforce after many years away from corporate life, it is always smart to always have resources that you have full control over. Whether it is a bank account in your name or a property fully in your name.
Always be looking out for opportunities to earn extra income. At this stage in life, leveraging your skills, experiences, and passions can create monetisation opportunities while setting the foundation for long-term wealth.
Consider online side-hustles that could fit your lifestyle and schedule. That could look like something as light as answering surveys, or as involved as building websites. That all depends on you and your unique situation. When done right, side-hustles can be game-changing.
One easy thing you could do immediately is to starting auditing your skills and experiences, your passions and strengths. evaluate the ‘value’ that you could bring to the community. Sit with this information and ponder how you could leverage these things and possibly monetise them. More details in future posts!
Investing: Building Wealth for the Future
In developed societies, women are statistically expected to outlive their male peers by seven years. We live longer than men. For women in their 40s, this statistic underscores the importance of growing savings to ensure a comfortable and secure retirement.
It also highlights the need to think beyond traditional roles of dependence on a partner’s income and instead take active steps to build a robust financial future for yourself. By including investments in your portfolio, and managing money wisely from now, women can give themselves the best chance of a comfortable retirement.
And it’s never too late to start!
If you’re not quite ready to get on this adventure, you can still passively prepare yourself by learning all you can on it. There are plenty of resources out there on the Internet on this topic. All you have to do is enter the search terms ‘investing for beginners’; and see what comes up.
Over here, we will go on this journey hand-in-hand as I cobble together my research, learnings and experience, through the world of investing as beginners.
Overcoming Unique Challenges
There are many unique challenges that await those of us to have become inspired to lean into financial independence.
Limiting self-beliefs…
often stem from the programming we received during childhood and adolescence, and for many women in their 40s, these beliefs can still hold a powerful influence. Messages like "You’re not good with money" or "You wouldn’t understand this” may be entrenched in our subconscious, shaping decisions and keeping us from reaching our full potential.
Fear of failure…
is a deep-seated obstacle that many women face, especially when stepping into the world of financial independence in their 40s. After years of prioritising family or other responsibilities, the thought of starting over or taking risks can feel overwhelming. Questions like, “What if I lose money?” or “What if I’m not good enough?” can paralyse progress before it even begins.
I admit to being guilty of this one, with my biggest fear being, “What if everyone hates it and doesn’t buy my product/service”. I have a huge fear of not being seen; and then of being seen too much, which limits me at both ends; I am afraid of failure as much as I am afraid of success.
Non-supportive environment
This is a tricky one because it involves the people that we love. Sometimes, family members who have gotten so accustomed to having you around to take care of things might react less than enthusiastically to your new desire to become financially more autonomous. Because this shift in you might signal a change in the level of (acknowledged or unacknowledged) comfort you bring into their lives. And since you are a beautiful, feminine spirit, your urge to nurture can sometimes overwhelm your instinct for self-preservation.
Lack of Guidance
For many women, financial literacy wasn’t something we were taught growing up. If anything, many of us were encouraged to focus on family responsibilities rather than financial independence. Because of this, navigating money matters—whether budgeting, investing, or even understanding financial planning—can feel overwhelming.
I’ve personally always longed for a mentor, someone who could provide perspective and guide me through financial decisions. Having such a figure in my life might have helped me develop confidence in managing my own finances much earlier. But as I’ve come to realise, while a mentor can be invaluable, self-education is just as powerful.
One book that truly shifted my mindset about money is 'The Art of Money' by Bari Tessler. Unlike traditional finance books filled with jargon and rigid strategies, this book takes a deeply personal and holistic approach to financial wellness. It intertwines emotional intelligence with practical money management, helping you understand your financial story, overcome limiting beliefs, and develop a healthier relationship with money.
Final Thoughts
Financial independence for women over 40 at any stage of their finances is not only achievable but also empowering. By breaking it down to its basics, discovering your true financial goals and making a plan to get there, do you start secure your own future and enjoy a fulfilling life.
I’ll be the first one to say that this aspect of adulting intimidates me. I also realise that if it is something that I am turning away from, then it’s probably something I need to face head-on.
Part of the healing journey is recognising, challenging and breaking out of these mental prison cells. Replacing them with empowering beliefs opens the door to growth, whether it’s pursuing a new career, starting a business, or taking control of your finances.
