It’s Time: You Learn What ‘Cashstuffing’ Is & Budget Like Old Times
Well, as we continue our journey of giving you long-term money-saving goals and, with that, guidance on different budgeting tricks, how can we miss the trends that millennials and Gen Zs are following? In this week’s edition of our It’s Time series, let us discuss ‘Cash Stuffing,’ which is a new spin on an old budgeting strategy that offers a way to save.
Although cash stuffing has been around for a long time, it has recently resurfaced, particularly among youngsters who spend more time online.
What Is Cash Stuffing?
In cashstuffing, people withdraw their monthly, bimonthly, or weekly total budget and split it into separate physical folders, each dedicated to a different use, for people wanting to try to conserve money during a period of severe inflation and a cost of living problem.
While internet banking applications allow consumers to budget their funds, some who swear by the trend claim that holding actual money affects how you spend it.
The trend’s hashtag, which is especially popular among Gen Z and Millennials on TikTok, has been seen by over 500 million people on the social media network alone.
People who use this budgeting method withdraw money from their accounts—enough to meet their monthly, biweekly, or weekly budget minus direct payments for rent and bills—and divide it into different folders, each for a different purpose. The trend does not limit the quantity or types of spending, nor does it specify how much money individuals should save, but rather adheres to conventional budgeting principles.
As much money as you put in the envelope, that is the amount of money you are permitted to spend that month. At the end of the month, you may check over your spending, document it on a spreadsheet, and reorganise the budgeting across the categories if required. If you have any money left over, put it into savings.
For some people, seeing genuine banknotes might help them understand how much money they’re spending, but swiping card payments can have an almost unreal aspect to them.
People can tell when they are running low on money and what categories they are overpaying on by utilising cash and having their whole monthly budget written out in front of them.
If people run out of money for socialising, they may decline an outing with friends, or they may advise that they and their friends spend money-free time together, such as going for a walk instead of going to the bar.
Of course, this may also be accomplished by using an online banking app. However, witnessing the money being spent and personally handing it over to another person might make some people more conscious of the worth of their own savings.
Save Money With Cashstuffing Method
Furthermore, having to stick to spending cash exclusively would keep people with an overspending propensity from falling into debt with internet purchases made via credit cards.
Budgeting By Using The Cash Envelope System
Remember, once you have spent your money, it’s gone! If you need to go to the grocery store but don’t have enough money in hand, go through your refrigerator for leftovers. Alternatively, for a pantry challenge, rummage through your pantry and see what you can find to make dinner without having to travel to the store. The cash envelope method is a wonderful technique to become more conscious of your spending habits.
Remember, the cash-stuffing strategy is all about being mindful with your spending so you can start living the life you want. It’s easy, and you can do it!
If you recognise Jasmine Taylor, it’s probably because you’ve seen her on TikTok. The 31-year-old from Amarillo, Texas, began documenting her adventure with cash-stuffing in 2021 and quickly became a hit.
Going viral is one thing. It’s one thing to transform a glimmer of internet celebrity into a full-fledged enterprise. Taylor, on the other hand, has done just that.
According to a CNBC report, Taylor used her $1,200 stimulus payment to launch Baddies and Budgets in 2021. She purchased a Shopify account, shipping supplies, a Cricut machine, and materials to make cash-stuffing accessories like personalised envelopes and cash wallets.