On the heels of viral trends like looksmaxxing (maximizing one’s attractiveness) and healthmaxxing (optimizing physical and mental wellness), moneymaxxing describes the pursuit of better finances.
But what does it mean, exactly? Well, it starts with a concept that’s been around longer than social media: budgeting.
“It’s the same kind of personal finance advice we’ve seen for years, but it’s algorithmically tuned,” says Jesse Mecham, founder of the You Need a Budget app and author of “Never Worry About Money Again.”
Moneymaxxing means tracking dollars, planning spending and setting financial goals. It can also encompass a short-term sprint to achieve something specific, like paying off debt, or committing to longer-term habits that make you better with money.
Embracing the trend can be helpful if it motivates you to adopt positive money shifts, Mecham says.
When I asked financial professionals how we can all apply moneymaxxing concepts to our own lives, they suggested sticking with these strategies:
Give each dollar a purpose
It’s easier to track your money and avoid overspending when you plan ahead, says John Gillet, CEO and founder of the Gillet Agency, a financial planning firm in Hollywood, Florida.
“Aside from the bills you have to pay and your consumption on a monthly or annual basis, money needs to be allocated to different areas,” he says.
This approach, often labeled zero-based budgeting, includes setting aside money for savings goals, too.
“Maybe it’s saving for a house, a down payment on a first car or putting a kid through college. Whatever it is, you need to have your money growing,” Gillet adds.
“Moneymaxxing is about making sure every dollar has a purpose,” he says. “We dedicate our lives to earning it, why let it slip through the cracks?”
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Cut back on extras
Sometimes, tracking every dollar reveals expenses that can be trimmed.
“One area of the budget that can go a bit awry and wreck your overall financial plan is entertainment,” Gillet says. That includes spending on restaurant meals, the movies and other forms of socializing.
Gillet suggests scaling back those expenses in favor of saving if you are looking to max your money. And when you do spend in those areas, try to layer in rewards, loyalty programs and other discounts in order to stretch your dollars further.
Subscriptions are another area to pare back, says D’Andre Clayton, co-founder of Clayton Financial Solutions in Greensboro, North Carolina.
“You might not even use the service anymore,” he says, especially if you signed up for a particular TV show or sports season. While small monthly fees might not seem like much, it adds up quickly, he says.
Shed high-interest debt
If you’re carrying high-interest credit card debt, then Clayton says you might be “moneylaxxing” instead of “moneymaxxing.”
“It’s killing your opportunities for the future,” he says, because it’s harder to save up money to put toward financial goals if so much of it is going toward debt payments.
Making a plan to pay off that debt can be part of moneymaxxing, Clayton says. Unload the debt, then focus on building up savings and investments to meet longer-term goals.
Find joy in spending
While credit card debt is a killer, Clayton cautions against being so obsessed with the pursuit of financial optimization that you forget to enjoy your money.
“If you stay fixed on the debt past the point of fixing debt problems, then you might sacrifice too much,” he says.
Clayton encourages people to consider the kind of spending that brings them true happiness and then to make sure they leave room in their budget to pursue those activities. It can be a vacation, an outing with friends, a daily iced coffee or whatever brings you joy (within reason).
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Be careful not to overscrutinize in your quest to optimize.
Just as looksmaxxing can go to excess in the form of unneeded plastic surgeries, moneymaxxing can also go too far.
Mecham cautions against making permanent decisions like selling your house or forgoing basics in the pursuit of saving money.
“Avoid anything where you are doing something immoral or irreversible,” he says.
Most importantly, he says, stay curious about your money. “You can be as intense as you want, but then think: What did I learn? What felt good? What did I learn about my relationship with money?”
After all, peak moneymaxxing ought to leave you feeling more relaxed, confident and less obsessed with finances.
