What is ‘moneymaxxing’ and how can it help your budget?

(InvestigateTV) — “Moneymaxxing” is a viral social media trend focused on making the most out of every dollar already being earned.

Clay Cooper, a wealth management advisor with Northwestern Mutual, said the concept covers things like moving money to a higher-yield savings account, maximizing credit card rewards or cutting unused recurring subscriptions.

Cooper said the trend is essentially a positive spin on traditional financial planning, and it starts with a thorough budget review. He recommends pulling bank and credit card statements from the past year and closely examining spending patterns.

Cooper said one of the most valuable steps is identifying unused subscriptions.

“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.”

Cooper said credit card rewards should only be viewed as a bonus on planned spending, not a motivation 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 said the goal of moneymaxxing should not come at the cost of overall well-being. When optimizing credit cards or squeezing extra interest out of savings, the effort needs to be worth it and sustainable over time. He said the goal is progress, not perfection.