"I just can’t do this anymore."
That thought crosses the mind of countless professionals stuck in toxic workplaces, facing layoffs, or simply yearning for more autonomy. Yet between that initial spark of wanting independence and actually handing in your resignation lies a critical question: Are you financially prepared for what comes next?
In our recent "Exit and Elevate: Money Matters for Wantrapreneurs" LinkedIn Live conversation, we dug into this very question with two experts who've not only made this transition themselves but now guide others through it: Arielle Deane, a trading instructor who teaches women financial independence strategies, and Tania Brown, a certified financial planner specializing in corporate exit plans.
What emerged was more than just practical advice about savings accounts and emergency funds—though that's certainly part of it. Instead, they revealed that financial preparation for self-employment is equal parts strategy, psychology, and even spirituality. Here are the essential insights from our conversation that could transform how you approach your own professional leap.
1. Rehearse Your Financial Exit Before Making the Leap
One of the most common mistakes aspiring entrepreneurs make is underestimating what they'll need financially when transitioning to self-employment. "The number one misconception is grossly underestimating how much they'll need if they want to take a leap,” Brown begins. “And also assuming the only way to become self-employed is to take a huge leap,” she continues. “They can do this in microsteps."
One practical microstep is to rehearse your financial exit before actually making it. “Figure out your lifestyle limit,” Deane recommends. “I know exactly how much money we need each month, and I practice hitting that without having to look at all the numbers,” she recalls from her own experience. “You want to know what it's going to be like to live.”
This rehearsal period allows you to fine-tune your budget, identify essential expenses, and determine your true financial comfort zone before your exit.
2. Build a Complete Financial Runway (Not Just Living Expenses)
Both experts stressed that a successful transition requires more than just covering your basic living expenses. Brown introduced a comprehensive framework using the acronym SAVE:
"S is setting your living expenses. The A is assessing the financial risk, that's putting in the deductibles. The V is evaluating the expenses that are coming up in that season you are actually going to be self-employed. And the E is estimating those startup business costs."
This expanded view of a financial runway covers not just how you'll pay your bills, but also how you'll handle unexpected emergencies, upcoming life events, and the actual costs of starting your business. And those actual startup costs don't include expensive branding, as Tania pointedly notes. "You do not need a $4,000 website and an $8,000 branding video when you have no idea what client you are attracting with them."
3. Align Your Money with Your Values, Not External Expectations
Rather than following generic advice or external expectations, it’s important to create a financial plan that honors what truly matters to you.
"I like my date nights with my husband. I kept that in my budget when I pivoted,” Brown shares candidly. “If getting your nails and toes done [brings] you joy, joy stays in the budget. You can't have everything, but you can keep the most important things."
According to Deane, it's about priorities. "I think it's about aligning your money to your values,” she says. “I care a lot about food. I care about my daughter's education. So those things, I'm not scrimping on."
This value-aligned approach creates a sustainable financial plan you can actually stick with during the transition, balancing necessary sacrifices with maintaining quality of life.
4. Develop a Resiliency Plan for Emotional Stability
Perhaps the most unexpected yet vital insight from our conversation was the importance of preparing for the peaks and valleys of entrepreneurship—not just financially, but psychologically.
"I actually have [clients] build a resiliency plan,” Brown shares. “Because you will go through what I call the entrepreneurship stages of grief in five minutes.” For those moments, she recommends creating a personalized "battle plan" that includes spiritual practices, mantras, supportive community, physical activities, and even a specific playlist to help anchor you during difficult moments.
"Faith is just such a big part of this journey,” Deane adds in agreement. “Faith in who your source is, faith in yourself…and then agreed, I would say the community is big,” she continues. “You have to have people who are also pouring into you."
5. Learn to Trust Your Intuition Again
For many professionals, especially those coming from toxic work environments, reconnecting with and trusting your intuition is crucial for continued success.
"I had to actually retrain myself to listen to my intuition, but to also trust myself, to trust what felt good, to trust what I wanted to do," shared Deane, who worked with an intuition coach before transitioning to entrepreneurship.
Tania added important context for those leaving negative workplace situations. "When you work in toxic environments, gaslighting is the mode of operations,” she says. “And unfortunately gaslighting will erode your intuition. You start questioning yourself." She suggested that sometimes healing must precede financial planning.
The financial journey to entrepreneurship is multifaceted—requiring strategic planning, emotional resilience, and a willingness to align your finances with your deeper values. By taking these insights from experts who have successfully navigated this transition themselves, you can build not just a financial safety net, but a comprehensive framework that supports your entire journey to self-employment.
—
Want more insight and inspiration like this? Subscribe to The Purpose Post for weekly inspiration, practical guidance, and more stories of working adults building fulfilling careers and lives on their own terms. Join our community of 1000+ purpose-driven professionals charting their own paths to success, plus get our free Self-Employed Starter Kit for your 30-day launch plan.
