Nearly Half of Americans Budget Based on Vibes. Should You?

Your feelings about the economy can help you set a smarter money strategy. Massonstock/Getty Images Potential romantic partners. Your next vacation spot. Whether you should leave a party early. A vibe check can help you evaluate lots of things, including your money strategy. A June study by Intuit Credit Karma found that 44% of Americans surveyed have done "vibe-based budgeting." Gen Zers and millennials, in particular, are adjusting their spending and savings habits according to how they feel about the economy, not necessarily based on their actual financial situation. For many, anxiety over tariff-induced price increases and layoffs is motivating them to make calculated money moves, such as cutting nonessential spending and boosting savings. Here's what to keep in mind when factoring vibes into your financial strategy. Read more: I Spent Years Failing at Budgets. Then I Found the Tips That Actually Work Emotions affect your money mindset Vibe-based budgeting is a new term, but it's hardly a new idea. Emotions have always played a role in how we manage our money, even if we don't realize it. And that's not necessarily a bad thing. For example, many of the vibe-based budgeters in the Intuit Credit Karma study are cutting back on non-essential spending (45% of respondents), monitoring their spending more closely (42% of respondents) and avoiding taking on new debt (38% of respondents). These are smart steps to take in any economy, but especially when things are precarious. It's important to follow the headlines and prepare when things are scary, and channeling your fears into action can help you create healthy money habits that will serve you for years to come. The key is not letting your emotions drive your game plan. Vibes alone aren't enough Budgeting solely on vibes could be a slippery slope, especially when your vibe check doesn't match your bigger financial needs. For example, if the stock market plummets, you might panic and make a rash decision that derails your long-term retirement strategy. If the economy turns around, relief and optimism might tempt you to treat yourself to a splurge you can't really afford. Effective money habits, such as monitoring your spending, building an emergency fund and following a long-term investment strategy, are the best way to weather economic ups and downs and prepare for the future. Other budgeting trends Trends like vibe-based budgeting can help you create and stick to a financial strategy, especially if traditional budgeting doesn't do it for you. In addition to vibe-based budgeting, there are other social media trends that could offer guidance. Bonus: We've recommended some affordable, easy-to-use budgeting apps that can help with each strategy. 📢 Loud budgeting Loud budgeting means being open about your money goals with the people in your life. For example, if your friend invites you to a pricey concert that would derail your monthly savings goals, you might say something like, "I'd love to go, but I'm trying to cut back on spending right now, and I need to stay on track." Vocalizing your money strategy can help you resist temptation, avoid feeling guilty and keep your savings goals a priority. It may feel awkward at first, but you might be surprised by how many people appreciate your honesty. (There's a good chance they're struggling with similar things.) Recommended budgeting app: Cleo ✅ Zero-based budgeting With zero-based budgeting, you assign every dollar you earn to a budget category, like rent, savings and entertainment. You can still budget in money for the fun stuff, but once you've spent all the cash you've allotted to a category, you're done for the month. Divvying up your income ahead of time makes it easier to balance spending with your other financial goals, such as investing and paying down debt. You can also try physical cash stuffing, otherwise known as the envelope method, if you prefer a tangible way to keep your spending in check. Recommended budgeting app: EveryDollar (zero-based budgeting); Goodbudget (envelope method) 🥰 Soft saving If the economy's bad vibes are tanking your mental health, soft saving could be a good strategy. This method balances saving for the future with taking care of yourself in the present. Instead of scrimping and saving everything you can for the future, you put some money toward savings while allowing yourself to invest in your quality of life in the here and now. That could mean things like getting a massage or treating yourself to takeout at the end of a long workday. It can help you stay on track with your goals without depriving yourself so much that you burn out (which certainly won't do your finances any good). Recommended budgeting app: Rocket Money