What is 'moneymaxxing' and how can it improve your budget?

A wealth advisor says the viral trend begins with a close look at last year’s spending

(InvestigateTV) — “Moneymaxxing” is a social media trend centered on getting the most value from money you are already earning.

Clay Cooper, a wealth management advisor with Northwestern Mutual, said the idea includes strategies such as shifting funds into a higher-yield savings account, making the most of credit card rewards, or canceling subscriptions that are no longer being used.

Cooper described the trend as a positive take on traditional financial planning, and said it starts with a detailed budget review. He suggests gathering bank and credit card statements from the past year and studying spending habits carefully.

One of the most useful steps, Cooper said, is finding subscriptions that are no longer needed.

“The other thing I think is great to do while you’re looking at your bank statements is go through it with a fine-tooth comb and go, ‘What subscriptions am I paying for that I don’t even know, or I’m not using?’” Cooper said. “I am embarrassed to say my wife and I just did this at the beginning of the year — we cut out 12 subscriptions.”

He said credit card rewards should be treated as an added benefit to purchases you were already planning to make, not as a reason to spend more.

“Normal expense — automate the cash back and pay the full balance every single month,” Cooper said. “If you’re buying something just to earn credit card points, you’re no longer moneymaxxing, in my opinion.”

Cooper added that the goal should not come at the expense of your overall well-being. He said efforts to optimize credit cards or earn a little more interest on savings should be worthwhile and manageable over time, with progress mattering more than perfection.