How LGBTQ+ Entrepreneurs and Employees Can Lay a Solid Financial Foundation
For LGBTQ+ small business owners and employees, the road to financial well-being may look different than it does for others, shaped by unique experiences, systemic barriers, and our values.
How do we build retirement security despite these challenges?
1. Do a Spending Analysis & Measure Your Return on Happiness
Before making big financial choices, know precisely where your money’s going and what it’s giving you in return. Then, measure your Return on Happiness (ROH)™—how much joy does your spending bring you—what sparks joy, and what sparks immediate regret?
Ask: Am I spending to impress or to feel fulfilled? A spending analysis helps you shift money from low-ROH habits (like mindless shopping or “fabulously broke” brunches) to high-impact goals like saving, investing, or growing your business.
2. Improve Your Credit Score
Your credit score is a powerful but often overlooked tool, especially for LGBTQ+ individuals seeking loans, housing, or lower interest rates. Yet many of us were never taught how to build it.
To improve your credit:
- Pay on time (even the minimum)
- Keep credit use (the percentage of your available credit you use) under 30%
- Don’t close old accounts
- Check your credit report for errors and fraud
3. Build Emergency Savings
Crises don’t wait until we’re ready. From medical bills to slow client months, an emergency fund is essential, especially for LGBTQ+ individuals, to avoid debt and panic.
Start with $500 or $1,000 and build toward 3–6 months of essential expenses in a high-yield savings account. Gig workers and business owners should budget separately for personal and business emergencies.
4. Pay Off High-Interest Debt with the Debt Lasso Method
To pay off high-interest debt faster, use our Debt Lasso Method—an innovative way to stop wasting money on interest.
Here’s how it works:
- Commit – Stop using your cards and commit to a monthly payment.
- Trim – Pay off small balances quickly for early wins.
- Lasso – Consolidate debt at the lowest possible interest rate (ideally 0%).
- Automate – Set auto-payments to prioritize the highest-rate debt.
- Monitor – Track progress and shift payments as you knock out each card.
Want faster results? Use side gig income to accelerate your debt payoff.
5. Consolidate Your Retirement Accounts
For LGBTQ+ entrepreneurs and employees who may have worked multiple jobs or changed careers more frequently due to discrimination or seeking inclusive environments, retirement accounts can become scattered and forgotten.
Consolidating old 401(k)s and IRAs from past employers gives you:
- A clear picture of your total retirement savings
- Potentially lower fees (fewer accounts = fewer maintenance fees)
- Simplified management and better asset allocation
- Less paperwork and fewer passwords to remember
Greater visibility into your progress toward retirement goals
How LGBTQ+ Entrepreneurs Are Saving for Retirement Outside Traditional Jobs
Lacking employer plans, LGBTQ+ entrepreneurs are doing it for ourselves.
SEP IRA
SEP IRAs are simple, allowing contributions up to 25% of income (capped at $70,000 in 2025). Ideal for freelancers with variable income, they offer flexibility and low admin hassle, making them popular among LGBTQ+ self-employed individuals.
PensionBee now offers SEP IRA, allowing self-employed users to save more with higher contribution limits. It’s easy to get started.
Roth IRA
With 2025 limits of $7,000 ($8,000 if 50+), Roth IRAs offer tax-free growth and withdrawals—ideal for younger LGBTQ+ entrepreneurs in lower tax brackets expecting higher future income.
By combining these accounts, LGBTQ+ entrepreneurs can build diversified retirement portfolios and automate contributions, even with inconsistent income, focusing on long-term security over short-term spending.
But do you need another account? No. Let’s discuss a great way to simplify this.
How LGBTQ+ Investors Are Simplifying Their Portfolio Management
The average American holds 12 jobs—often leaving behind just as many retirement accounts. It’s time to rein in all those accounts into one, easy-to-manage account.
PensionBee makes it easy. Their app helps you combine accounts into one, so you can manage everything simply and keep saving for your dream retirement.
And yes, their BeeKeepers are just as helpful as they sound.
Click here for more information.
Conclusion
LGBTQ+ entrepreneurs are trailblazing new paths to retirement, prioritizing authenticity, community, and resilience. By embracing self-employment and new savings tools, LGBTQ+ entrepreneurs are redefining retirement.
As we say, "live fabulously, not fabulously broke."
