LGBTQ Job Security: Financial Preparation Amidst Uncertainties
In today's uncertain job climate, the LGBTQ community faces unique challenges when it comes to workplace security. With the potential removal of federal LGBTQ protections, many are understandably concerned about their financial well-being.
Precautionary Savings: A Buffer Against Potential Job Loss
Economist Paul Donovan emphasizes the importance of preparing financially for a worst-case scenario. He advises individuals who may face job insecurity due to their identity to prioritize liquid assets, also known as "precautionary savings."
"Liquidity serves as an insurance policy, providing a buffer during times of financial instability," Donovan explains.
Discrimination's Economic Impact
Discrimination not only affects individuals but also hinders economic growth. Donovan stresses that "irrational discrimination against people is economically detrimental."
Research has shown that prejudice limits human capital, preventing individuals from reaching their full potential in the workplace. This can lead to lower labor mobility and limit career opportunities.
Hiding One's Identity: A Detriment to Productivity
Fear of discrimination can force individuals to hide their true identities, which can erode confidence and productivity. Donovan argues that his own experiences as a gay man have enhanced his economic research by providing a unique perspective.
Resources for LGBTQ Individuals
Concerned LGBTQ individuals can access financial advice and support from organizations such as:
* Swiss financial services firm UBS Wealth Management
* Podcast "Living Not So Fabulously" for real-money stories from the LGBTQ community
* Video hub for episodes of the "Living Not So Fabulously" podcast