Americans are entering 2026 with renewed motivation to achieve their financial goals. A new Bank of America survey reveals that 89% of Americans set financial resolutions this year, up from 81% two years ago.
That renewed focus on personal finance comes amid broader economic momentum, with recent GDP data showing the U.S. economy grew at a 4.4% annual rate in Q3 2025. Together, the data suggests Americans are feeling more confident and more intentional about how they spend and save.
Many consumers are embracing “joy-based budgeting” – prioritizing the spending that brings meaning and fulfillment, while making intentional tradeoffs elsewhere.
So, how can people balance enjoying day-to-day life while working toward financial goals? Here are some actionable tips to help consumers embrace joy-based budgeting, from identifying non-negotiables to making smarter tradeoffs.
Define What Brings You Joy: Align your spending and saving with what truly enriches your life. Start by reviewing your past spending to identify your “joy” spending categories – experiences, specific hobbies, or dinners with loved ones. Then, use the 50/30/20 budgeting framework: allocate 50% of your after-tax income to cover needs, like rent, 30% to wants (including your “joy” spending categories), and 20% to savings. By consciously directing 30% toward what truly matters to you, you’ll balance spending that serves your long-term happiness with savings.
Embrace Strategic Sacrifices: Cultivating a strong financial well-being often means making intentional trade-offs. Bank of America found that 86% of consumers are cutting back on discretionary spending, and the key is adopting a “save-for-it” rather than “do-without” mindset. Cooking at home more often or streaming entertainment instead of going out means more savings to redirect toward purchases that align with your values.
Maximize Joy Spending with Strategic Rewards: Once you’ve identified your priority spending categories, choose a credit card that rewards you accordingly. For example, the Bank of America Customized Cash Rewards currently offers 6% cash back for the first year after account opening (up from 3% cash back) in one of six categories of choice each month. This card also allows you to switch your category of choice once a month to align with where you’re spending most.
Automate Your Emergency Fund: Building an emergency fund can feel daunting. In fact, 32% of Americans find it to be the most challenging aspect of managing their money. Make it effortless by setting up automatic transfers from each paycheck to a build three to six months’ worth of living expenses in a dedicated fund. A solid safety net reduces financial anxiety and strengthens your financial well-being – giving you the confidence to spend joyfully on what aligns with your values.
By integrating these practical tips, you can truly master joy-based budgeting, confidently balancing enjoying today and building a secure financial future.
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