Financial planning after life events

Lady doing financial planning at home with notebook, dog on couch, coffee mug, and puzzle on table.
Therese McGrath
Therese McGrath, Chief Financial Officer
Reviewed: 02 Feb 2026
Read time: 4 min

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  Resetting finances |   Money management after separation |   Financial resilience |     Adjusting finances

Life doesn’t always go to plan and when major changes happen, your finances can take a hit. Whether you’re going through a separation, facing job loss or dealing with illness, this guide offers practical steps to help you regain control, rebuild stability and move forward with confidence.

Resetting your financial foundations

When life shifts, your financial plan may also need to change direction. Start by reviewing your current situation and identifying what’s changed.

Take stock of your income and expenses

List all sources of income – including salary, government support or child maintenance – and compare them to your current expenses. This gives you a clear picture of what’s coming in and going out.

Update your budget

You can use a simple framework like the 70-20-10 rule to guide your spending:

  • 70% for essentials
  • 20% for discretionary spending
  • 10% for savings or debt repayments

If your income has dropped, adjust the percentages to reflect your new reality. The goal is to stay consistent, even if the amounts are smaller.

Make it visible

Print out your budget and stick it somewhere you’ll see it regularly - like the fridge. Better yet, share it with someone who can help keep you accountable.

Managing money after separation

Separation can be emotionally and financially challenging. Here are a few steps to help you get back on track.

Checklist icon with a red checkmark, representing the first step in financial planning after life events.

Start with a plan

The first step is often the hardest, but once you’ve made a plan, the next steps become easier. Set clear financial goals and prioritise what matters most.
Stack of documents with a dollar sign, symbolizing reviewing financial paperwork like bills, insurance, and accounts.

Review your paperwork

Consider making a list of joint financial commitments and work through them one by one:

  • Bank accounts, savings and superannuation
  • Power, phone and internet bills
  • Insurance policies (life, health, home, car)
  • Credit cards and store cards
  • Property deeds or rental agreements
  • Wills and estate plans

Updating these details helps protect your financial future and reduces the risk of unexpected liabilities.

Hand holding a coin with a dollar sign, illustrating budgeting and managing expenses to live within your means.

Live within your means

Your new living situation may come with lifestyle changes. Aim to keep monthly expenses below your income and adjust your routine to suit your budget.
Stack of coins with a dollar sign, representing saving funds for emergencies like rent, utilities, and essential expenses.

Plan for emergencies

Try to set aside funds to cover 2–3 months of essential expenses like rent, utilities, food and transport. Include any loan repayments and make sure your insurance cover is up to date.
Speech bubble icon with dots, symbolizing financial counselling and expert advice for informed money decisions.

Seek expert advice

Financial counselling services like those listed on the MoneySmart website can help you navigate the transition and make informed decisions.

Staying financially resilient

Whether you’re recovering from illness, job loss or another life event, resilience is key. Here’s how to stay grounded and proactive.

Dollar sign with circular arrow, symbolizing flexible financial planning for changing expenses.

Build in flexibility

Expenses can vary month to month. If you have a surplus, you may wish to save it for times when costs spike. Just make sure flexibility doesn’t become an excuse for overspending.
Two clinking wine glasses, representing budgeting for entertainment and small treats responsibly.

Include fun in your budget

A financial plan doesn’t mean cutting out joy. You can still set aside a small amount for treats or entertainment – it’ll help you stick to your budget long-term.
Party popper icon, illustrating celebrating savings goals or debt payoff without overspending.

Celebrate milestones

Reaching a savings goal or paying off a debt deserves recognition. You could use loyalty rewards, coupons or free entertainment options to celebrate without overspending.

Adjusting your financial plan

Your financial plan should evolve with your life. Regular check-ins help you stay on track and make informed decisions.

Review regularly

Check in monthly or quarterly to see how your spending compares to your plan. Adjust your buckets if needed and keep your goals realistic.

Rebuild gradually

If you’ve dipped into savings or fallen behind on repayments, don’t panic. Focus on rebuilding slowly; even small steps make a difference over time.

Stay accountable

Sharing your plan with someone you trust can help you stay motivated and on track.

Need help getting back on track?

Pepper Money offers flexible loan options and financial assistance support to help you manage your finances through life’s ups and downs. Speak to our team to explore what’s possible.

Therese McGrath - Pepper Money Chief Financial Officer

Contributor | Therese McGrath, Chief Financial Officer

Therese brings over 25 years of international experience in finance, strategy, and operations. She joined Pepper Money in January 2018 as Chief Financial Officer. In this role, she provides the leadership and financial and operational management necessary to ensure Pepper Money achieves its strategic goals and objectives. Read more.

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