LANSING, Mich. (WLNS) — It’s an old trend that now has renewed interest.
Cash stuffing is going viral thanks to younger generations looking for creative ways to budget during inflation.
What cash stuffing entails is putting cash into separate envelopes labeled for specific needs such as gas, groceries, or rent in order to budget easier.
Jasmine Taylor posts TikTok videos sharing how she saves money using cash stuffing.
“I started sharing it and it just took off,” Taylor said.
Taylor started doing this around her 30th birthday, as the bills stacked up and she needed a solution.
“I personally use what’s called a zero-based budget, so what that means is whatever I get paid, every single dollar I make I give it a place,” Taylor said.
Taylor places them in labeled envelopes, and her views have exploded.
“So many people just aren’t financially literate, so just having a straight forward method of budgeting in the times we’re currently living in, where you have money set aside for groceries, and gas and things like that is just so much more appealing to people,” Taylor said.
Financial experts believe this trend is attractive because of the tough economic times we’re in.
“People are feeling the squeeze, they are feeling the pressure,” said Stewart Fields, managing partner at OpenAir Advisers. “They are seeing their savings dwindle and they are looking for any habits to get better.”
So what are the benefits of cash stuffing? The biggest benefit is not using your credit cards and not going into further debt, or reducing the debt that you already carry.
However, Fields warns not using a credit card won’t allow you to build credit, and you need to always to keep that cash in a safe place.
“Cash can be lost, it can be stolen,” Fields said. “Many homeowner insurance policies, many renter insurance policies, they don’t cover lost cash, and if they do it’s very minimal.”
“I do keep a fire-proof safe in my home just in case that happens,” Taylor said.