Those of us who don’t fit the mold of what’s deemed “normal” by social rules know that any kind of wellness and sense of normalcy don’t come easy. The systemic inequities and discrimination may not always be blatant, but they slowly chip away at your individuality and sense of the world. 

Today, we’ll focus on the financial aspects of queer life. From the get-go, if you don’t fit the mold, you get a tax slapped on you, and sometimes, you don’t even know you’re paying it. In the US, they get cute names like the “pink tax” or, in this case, the “queer tax.“

While fighting for better representation and inclusion is necessary, it’s also important to know how to navigate the world as it is, with its flaws and illogical rules. So, in this article, we’ll lay out a few financial wellness tips that can help you achieve stability even when everything around seems to be falling apart.

Plan for Your Big Life Events

LGBTQ+ individuals face unique financial challenges, and many of them do so without a traditional family to back them up. Education, marriage, having children, insurance (health or otherwise), and even retirement, all come with additional expenses. 

To prepare and set yourself up for wealth building, you might have to ignore most of the traditional financial advice floating out there. Start by educating yourself, and talk to a financial professional specializing in queer finances.

For instance, a standard approach to financial security is to maximize your retirement accounts first. But when surrogacy or adoption has a six-figure price tag, you need liquidity. To keep your money accessible, shift some savings into high-yield savings accounts or taxable brokerage accounts.

Be Wise About Debt

Debt may just as well be the great equalizer in today’s economy, as almost everyone has it. Yet, even here, queer people are snubbed or made to pay more. Data from the National Community Reinvestment Coalition (NCRC) show that when same-sex couples are approved, they face 0.2% higher closing costs and interest rates, adding thousands of dollars over the life of a loan.

Therefore, the best thing to do about small debt (credit cards, medical bills, overdraft fees, etc.) is to keep it under control so it won’t impact your credit score. In case of an emergency, like urgent medical care, home repairs, or fixing the car you rely on for work, it’s best to consider a personal loan to protect your day-to-day liquidity.

For more diversity and flexibility, look for offers like Republic Finance’s personal loans, which include both unsecured options and larger loans secured by collateral (such as a vehicle). But always make sure the fixed monthly payment fits firmly within your budget before borrowing.

Save and Invest Wisely

Both savings and investments help you cultivate financial independence if you know how to use them for your own benefit. Start by building your emergency fund and ignore the standard three-month safety net rule. When you face higher risks of workplace and housing discrimination, you need at least six to nine months of living expenses. 

Extra tip: Keep three months in a high-yield savings account (HYSA) for instant access, and place the rest in short-term Certificates of Deposit (CDs) or Treasury bills to earn higher yields.

If there is one financial tip that works for everyone, queer and non-queer alike, it is to invest in broad-market index funds (such as those tracking the S&P 500). These offer an affordable way to build wealth automatically through compounding interest. But it will take decades if you can’t afford to invest more.

Build Up Your Safety Net

Everyone needs a financial safety net, and queers have to build it from the ground up. Keep your mind in the game, learn the rules, and apply them to your own benefit. It may take a while for the fruits to show up, but in the end, you’ll be glad you made the effort