Cash stuffing is the latest trend that has gone viral on the video-sharing platform TikTok. In a nutshell, cash stuffing is a process with which you can save your hard-earned money.
Understanding what budgeting is and how it works, has never been more important. At a time when prices are rising all around, families are searching for ways to avoid overspending where they can. This might be switching to the cheapest supermarket, looking for ways to save energy at home or hacks to save on the cost of food shopping.
And to help people learn how to save money, a TikTok trend called cash stuffing has emerged within the TikTok community. The video has been viewed over four hundred million times.
Adam French, Personal Finance Editor at The Money Edit, said: “Cash stuffing is a new spin on old budgeting techniques our parents and grandparents will be all too familiar with, like stashing money for different expenses in old jam jars.”
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How Does Cash Stuffing work?
- With Cash stuffing dividing your spending into categories is the way to nail the art. Spends such as shopping, dining out, entertainment, petrol, gifts, and groceries might be the most consistent monthly costs, to begin with.
- Assign an envelope for saving. You can start to deposit any spare change at the end of each month into it. This could be for a car deposit or saving for a renovation or holiday. Having a specific goal is a great way to keep you motivated. Having these additional folders means you’re always allocating some money to long-term goals.
- Work out how much to assign to each category. If you know you spend too much on socialising, then lower your budget in that category, and so on. After you’ve budgeted, it’s worth creating a spreadsheet to track your spending, simply writing down how much you allocated and then spent that month. This creates an awareness of your spending habits and helps see where you went right and where you could cut back. Any leftovers can be added to your long-term envelopes to encourage you to keep going.
- Only spend what’s in that envelope. Restrict your spending to only using the allocated amount on each category and you should have savings in no time.
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When working out your overall cash stuffing budget, it’s best not to follow how another person or a TikToker sets their budget, as this varies for every household depending on income and expenses. You might decide to set your budget weekly or monthly. Make sure you choose the method that works best for you and your family.
What do you think about cash stuffing? Let us know in the comments below.
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