MoneyLife

Why women should be selfish with their stimulus money

By Ellen Williams
How to spend stimulus check

President Biden recently signed the COVID-19 Relief Package, giving most Americans extra cash. Most people will get $1,400. Do you have a plan for yours?

Put on your own oxygen mask first

Being a little selfish with your stimulus money may just be the responsible thing to do right now. We’ll explain. Anyone who’s flown on a plane has heard a flight attendant give a pre-flight announcement and say, “In case of an emergency, put on your own oxygen mask first before assisting others.”

It’s a simple concept — and one that you can apply not just to air travel but to your life. And your money. Think about it. If you run out of oxygen, you can’t help anyone else with their oxygen mask. Of course, we believe in the importance of giving to others. But if you don’t look after your own financial well-being first, you can’t be in a position to help anyone else out either.

Women have unique financial challenges

Times are really tough right now. And we get that you might need to use every penny of that stimulus money. But if you can afford to put some of it aside, it’s a smart move. Here’s why. Women tend to live longer than men, often earn less than men, and are the ones who tend to take time from their careers to care for family members, which could mean they work fewer years. So women have a lot at stake here, and we have to get this right.

3 smart steps to breathe oxygen into your financial stability

  1. Pay off high-interest credit cards.
    This year’s financial crisis might have pushed you to use your credit cards more than you’d like. If you can, use stimulus funds to pay off as much high-interest credit card debt as you can. This prevents you from throwing away money on interest every month, and your credit score will benefit because your utilization is lower. Just don’t forget to use and pay off the card on occasion so the credit card issuer doesn’t close the account. 
  2. Invest in your future.
    You’d be surprised how investing even small amounts consistently can really add up over time. Consider investing some of your stimulus money. One way to go: Choose one of the fully managed portfolios offered by MoneyLion. They’re the perfect solution for newbie investors and seasoned investors alike. You choose how much money you want to invest and the amount of risk you’re comfortable with, and we’ll build you a personalized investment portfolio and manage it along the way. Auto-invest makes it easy to consistently invest as much and as often as you choose. Just set it and forget it — and we’ll take care of the rest. All with no asset-based management fees or minimums. 
  3. Take your career into your own hands with Women Who Roar. Here’s a way to build your future that uses exactly zero of your stimulus dollars. (Hurray!) Times have been tough for many in the US,and because of the COVID pandemic, women have been disproportionately displaced from the workforce. Enter Women Who Roar, a diverse and vibrant community hub powered by MoneyLion, that connects women looking for work with experts, supporters, and potential employers.

Still have questions about your third stimulus payment?

Get answers to your questions at the MoneyLion Stimulus Resource Center

MoneyLion believes that we all get ahead when nobody gets left behind. And we’re rewiring the American banking system to bring positive change to the financial path of every hard-working American. Learn more.

Disclaimer

Commentary provided within not meant to be used as professional financial or investment advice.
Investment advisory services provided by ML Wealth LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Investment Account, see Investment Account FAQs and FORM ADV. Accounts are subject to administrative fee of $1 per month.

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