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Only around half of Americans have $1,000 saved for an emergency – but experts warn that creating a “financial escape plan” is essential for a host of difficult situations like a relationship going south, a troublesome roommate or a dead-end job.
“In my work with clients, I describe a ‘financial escape plan’ as a form of self-care and empowerment,” said Kiki Jacobson, a licensed mental health counselor who specializes in financial therapy.
“Money is deeply connected to a person’s identity, safety, and security. A lack of financial independence can increase anxiety and erode one’s mental well-being.”
Coming up with a plan is particularly important if a person is in the risky position of relying on someone else for financial stability.
“Even in stable relationships, relying entirely on someone else for financial security can create underlying stress,” Jacobson said. “It leaves you vulnerable to unexpected life events such as your partner’s job loss, death, or incapacitating illness. Feeling uncertain about your ability to support yourself or your family can negatively impact self-esteem, decision-making, and overall mental well-being.”
‘Peace is priceless, and having a financial escape plan allows you to breathe and know that you can get out and escape when the need arises,’ one expert said (AFP via Getty Images)
Jacobson recommends taking the following steps:
Open an individual bank account in your nameEnsure access to or copies of important documents, Social Security cards, bank details, credit card accounts, insurance policies, and other legal and financial recordsTry to do some part-time work (or full-time, when possible) Build credit and get access to a line of credit.
Once the basics are done, it’s important to build an emergency fund – a savings account for unexpected expenses that could force you to rely on the situation you’re trying to leave, said Cynthia Kirkpatrick, a senior advisor at wealth management firm Moneta Wealth Advisors.
“Build an emergency fund that can cover at least three to six months of living expenses,” Kirkpatrick told The Independent in an email. “These steps provide immediate flexibility when circumstances change.”
Those circumstances can include a sickness that could prevent you from working, job loss or unanticipated disability .
Create community
Turning to friends and family can give you the support and encouragement needed to stay with your escape plan.?
“Develop a support network of trusted friends, family members, and financial professionals,” Kirkpatrick said.
That network can play a pivotal role in relieving stress. A 2025 study from Cornell University found that “financial anxiety declines most when people share more controllable aspects of their finances, such as budgeting and spending.”
‘Develop a support network of trusted friends, family members, and financial professionals,’ one expert suggested (Getty Images)
The support network doesn’t have to be face-to-face, either. Talking about your financial progress online gives you more time to “think, write, edit and reflect,” one researcher wrote.
Investing in yourself through professional development is helpful, too, whether that be obtaining certificates related to your field, joining an industry association or going back to school to get an additional degree.
“Invest in career readiness by keeping a current résumé, maintaining workforce attachment when possible, and staying informed in your field,” Kirkpatrick said. “Together, these steps turn a financial escape plan from a concept into something actionable and empowering.”
Feeling free
A financial escape is about more than just money – it can improve your mental health.
“Psychological benefits include feeling more empowered and confident to take care of yourself and handle challenges that may come your way,” Jacobson told The Independent. “You can also experience a greater sense of control that is known to reduce chronic worry.”
Having a financial exit plan in place brings peace of mind, too, Austin-based family law attorney Michele Locke said.
“Peace is priceless, and having a financial escape plan allows you to breathe and know that you can get out and escape when the need arises,” Locke said in an email to The Independent. “Having the knowledge that you are not stuck in a terrible living situation … allows you to focus on other areas of your life that will need focus.”