Financial wellness planning tips for LGBTQ+ couples

Many consider financial freedom a cornerstone to enjoying a good life. And although the LGBTQ+ community has seen some progress as it relates to equality and protections, some still face distinctive challenges, as well as financial ones.¹

• Some are saving less for retirement¹
• Others carry more student loan debt (avg.$16k+) than their cisgender/heterosexual peers¹
• Retirees may experience higher housing costs to live in areas where they feel accepted¹
• Family planning is still expensive with costs into the tens of thousands¹
• Fewer than half of LGBTQ+ people in the U.S. live in states with insurance protections for them¹
• LGBTQ+ people on average make less money than their counterparts¹
• Gender confirmation surgeries for transgender people can cost anywhere from $10,000 to over $100,000.¹
   

The bottom line is most Americans in general need help with their finances regardless of individual challenges. The key to improvement is to have a plan, pay yourself first to save more while finding a way to reduce debt. 

How? Here is a list of the top things you can do to become financially well. And if you feel the need, get some guidance with a financial professional, to help navigate your personal circumstances. Here at Voya, we believe financial wellness is about balancing the freedom of living for today, saving for tomorrow, while living within your means along the way. Here are some tips to help you start: 

1. Plan for the life you want and set goals 

Talk with your partner to discuss the life you want now and into the future. Write it down. Then, make a plan. 

2. Protect your earnings

Think about this: what happens to your income and savings if illness or injury interrupts your income? Make sure you have enough health, disability and critical illness coverage to cover your expenses. If you are working, take advantage of your workplace benefits. Visit our Voya Learn on-demand video library to learn about different types of benefits coverage available.

3. Focus on your spending and saving

The 50/30/20 approach can be a helpful way to get started with budgeting. It’s simple, you put up to 50% of after-tax income toward things you need, 30% toward things you want, and 20% toward savings. Try our budgeting calculator to get started.

4. Build an emergency savings

Life is full of surprises. Shield yourself from the unexpected. Prioritize building an emergency fund to cover 3-6 months of expenses so you can stay out of debt when life happens. Watch our Voya Learn video on building an emergency fund for tips on how to build your emergency savings. 

5. Save for retirement

Contribute as much as you can, and at least meet any company match to your workplace retirement plan or open an IRA.  Start small, saving now will help pay for later. Watch our Voya Learn video on why you should save and invest in your workplace retirement plan now.

6. Get out of debt

Imagine, not owning anything to anyone. If you have any personal credit card or student loan debt, make sure you commit to paying it down. Start with the highest interest rate first and then work your way down.

7. Protect your family and future

Consider life insurance and an estate plan to leave your legacy the way you intended. Be sure to review and update beneficiaries for all of your assets and ask someone to be your power-of-attorney and health proxy. Watch our Voya Learn Estate Planning video to learn more on how to protect your legacy.

8. Save for other goals

Thinking about vacation? College? Support for elderly parents? A new car? Whatever you want to save for, once all of your other savings and retirement goals are met, start saving for your other goals too. Starting small can add up in the future.

Saving for the future is important to make sure your loved ones are taken care of.

Want to know more? Visit VoyaLearn.com for live and on-demand videos to help you become financially well and plan for the life you envision.