(WTNH) – Some popular financial TikTok stars are telling followers about “cash stuffing” to create and stay on budget.
Cash stuffing is taking your hard-earned money and dividing it into different categories like bills, savings, even date night. Then you “stuff” the cash into different envelopes or binders.
It’s a budgeting phenomenon taking over TikTok with the hashtag #cashstuffing garnering over 376 million views.
Stephanie Garcia is a TikTok cash stuffer. Online, she shows how she uses cash binders to manage money for herself and her kids.
“I swipe my card too much. You don’t really see how much money you’re spending until you want to see how much money do I have in my account before I make this purchase,” Garcia said.
She says it’s a strategy that really helps her stay on track with her budget. Using the method, Garcia’s managed to not only keep her debt low, but she has also saved over $10,000 for the future.
“I started using this method and it became to the point where I started even reducing my own debt by making extra payments on my credit card,” Garcia said.
This back-to-cash movement is a new twist on what was formerly known as enveloping. Garcia says when she’s tempted to overspend, her stuffing keeps her in check.
“Essentially, every single time I get paid, I’m just setting aside money for my bills. That way, when it’s time to pay my bills, I just remove the money from the envelopes and deposit it back to the bank,” Garcia said.
Some experts say if you’re going to try cash stuffing, start slow.
“If you’re budgeting for the first time, try this out with a few categories and you’ll really be able to see, wow I do have this accountability,” said Rachel Cruze, personal finance expert.