NEW YORK, NEW YORK – SEPTEMBER 14: A guest wears multiple gold rings with stacked metallic bracelets, a soft top-handle multicolored monogram canvas handbag from Louis Vuitton with tan leather trim and attached pom-pom and charm keychains, an olive-grey structured short-sleeve high-collar jacket cinched at the waist, charcoal wide-leg cargo- loading=”lazy” src=”https://secure.gravatar.com/avatar/?s=96&d=mm&r=g” alt=”” width=”78″height=”78″/> By Andrea Bossi ·Updated February 6, 2026 /> Getting your Trinity Audio player ready…

In the face of a mostly stagnant economy and one of the worst job markets in recent decades, people are making smaller purchases that still make them happy. “Joy-based budgeting,” a term used as early as 2013 by Manisha Thakor, is catching on strong.

It “is about being intentional with your money, so it supports what genuinely makes your life better,” Mary Hines Droesch, head of consumer and small business products and analytics at Bank of America, tells ESSENCE of the emerging spending trend. A sweet treat in lieu of eating a meal out? Sure. Cooking at home to make room in the budget for a fancy dinner with friends? Also, yes.

“Instead of cutting everything out, you first identify the spending that brings you real joy — whether that’s