What's a recession? A guide for LGBTQ+ survival

Anddddd we’re back! I’m talking about recession fears, of course. The U.S. isn’t in a recession quite yet, but a majority of people who spend their entire working lives managing money think one is coming soon. This matters for queer people, because recessions typically impact us more: LGBTQ+ people experience statistically significant workplace discrimination, carry more debt, and have less in savings to cushion the blow of a financial setback.

In a recent CNBC survey, 60 percent of CFOs said they expect a recession in the U.S. by the second half of this year, with another 15 percent expecting it in 2026. The word “recession” is also catnip for news headlines, so let’s calibrate on what the hell a recession really entails and how you might want to prepare.

A recession is a contraction in economic output, a time when consumers start buying less and industries start producing less. This can be due to multiple factors, which is why their origin stories can be confusing. Unlike diamonds, recessions aren’t forever; they’re a temporary rough patch. If you go off the ivory tower economic measurements like unemployment or GDP decline, we’ve had 14 recessions since the Great Depression, all of which *technically* lasted less than eighteen months. Most recessions are short.

The problem is that the fallout of a recession is not short. The economy might bounce back quickly, but the same can’t be said for many people’s financial situations. That’s because recessions lead to layoffs and tighter budgets, and many cope by dipping into savings or leaning into credit card debt to make ends meet. I’m old enough to have friends who lost their homes during the housing crisis (Which was not that long ago… right?!); recessions can be a bitch, or worse, a demon twink.

The most recent official recession was when COVID-19 arrived, and he didn’t last long at all, just two months. But the pandemic was (and still is) rough on many people’s finances, and for queer people it was worse. Our hours were reduced more, and about one in eight LGBTQ+ people experienced food insecurity during that time, according to data from the Human Rights Campaign and the Williams Institute.

There are a couple things you can do now to brace for a recession. To start, use your current situation to form the bones of your action plan. If you were to be laid off tomorrow, what would happen next? Cosplay this scenario (with feeling!) so that you can figure out a backup plan.

Next, remember that cash gives you options, so if possible, sock extra funds away now in the event your work situation suddenly changes. Don’t budget to the point of misery – like diets, budgets often backfire when they’re too strict – but consider doing a little spring cleaning on your expenses. When done well, cheap dates are sexy!

I want you to both save for the near future and incorporate fun in the present, because as queer people we need to keep spirits high right now. Having enough cash to find both of these goals might mean making big money moves, like picking up a side hustle or getting a roommate in the near future.

In case you missed it, it’s 2025: We face shit head-on now. Shimmy your shoulders to slough off that extra stress, then make a plan for the months ahead that will work for you and your life.

Nick Wolny is Out magazine’s finance columnist. He writes Financialicious, a personal finance newsletter tailored toward queer readers, and is working on his first book, Money Proud, which releases later this year. NickWolny.com @nickwolny

This article is part of the Out March/April issue, which hits newsstands April 1. Support queer media and subscribe— or download the issue through Apple News, Zinio, Nook, or PressReader starting March 20.