Cash stuffing is a money-saving practice that has been around for years, but it’s recently been getting tons of attention. If you take a closer look at the #cashstuffing hashtag on different social media apps, you’ll see what we mean.
It is easy to see why the method is gaining momentum, as people everywhere look to save a few bucks wherever they can.
Financial guru Dave Ramsey popularized using envelopes to save and budget cash since he’s heavily against credit cards and recommends using cash over debit cards.
He believes that some people find it easier to avoid overspending when seeing cash in hand, versus a number in a bank account.
Instead of simply using a card and swiping every time expenses arise, this gives people the chance to track their spending in a whole new way.
Check out the TikTok below:
@savannahhh.mariee how I save money! #cashstuffing #cashenvelopes #daveramsey #savingmoney
To do cash stuffing, you set aside money in envelopes at the beginning of each month. You allocate how much you get for food, gas, etc., and each category gets its own envelope.
When the money is gone, it’s gone. Some people find it helps them keep their spending within their budget and goals and prevents impulse buying.
Many people have taken to TikTok to share their tips and methods for using cash stuffing. TikTok user @thecashstuffinglife, for example, has a budget binder that helps to guide her decision making and she also separates her cash into different envelopes each month.
Check out her video below:
@thecashstuffinglife Cash stuffing #budgetgirl #budgettok #cashstuffing
Of course, critics of the method are quick to point out the two obvious dilemmas with cash stuffing: many bills are paid online and cash savings lose value due to inflation.
For online bills, people who use the method say to keep those bills in the bank and only use envelopes for things that can be paid for in cash, as @gloriaaa_mc explained in the comments of her video:
https://www.tiktok.com/@gloriaaa_mc/video/6928934898442964230?is_from_webapp=1&sender_device=pc&web_id7019354648058988037
A lot of the cash stuffers on TikTok show themselves saving for bigger ticket items in cash envelopes, like vacations, vehicles, houses, etc. While it might work for some people, you can better protect your money from inflation by saving using government-backed I-bonds or even a high-interest savings account like through Ally or Marucs.
With that in mind, cash stuffing is a fun idea and it’s aesthetically pleasing to watch!