A saving method that was already used in the time of our grandparents has reached 2023 thanks to TikTok and numerous videos about it that have gone viral. This is how ‘Cash Stuffing’ works.
The old though unknown to many method cash stuffing It is going viral again on TikTok among the youngest.
This saving trick is a somewhat different approach to personal financial management that uses a physical container, such as a jar, to divide and manage money earmarked for different categories of spending. Although it is not an official banking method, it refers to a strategy used by some people to control where they spend their money.
As a result of the almost non-existence of physical money in favor of cards, both on TikTok and on YouTube or Instagram, massive videos are appearing that explain this method.
The idea behind this trick is that when the cash runs out, it runs out and you don’t spend anymore. If you can see where your money is going in real time, you will be able to better manage your payments and debts and, ultimately, save.
This is how ‘Cash Stuffing’ works
1. Establish categories of expenses: the first thing you should do is Identify the spending categories you want to organize your money into. Some categories could be: food, transportation, entertainment, rent, savings, debts, among others.
2. Label the jars: Next, label the jars or containers you want to use separately with each of the expense categories.
3. Distribute the money: when you receive your salary, separate the cash destined for each category and place it in the corresponding jar. For example, if you have 500 euros and you have decided to allocate 100 euros for food, 200 euros for transportation and 200 for entertainment, Place those amounts in the corresponding jars.
4. Management of expenses: as you make purchases or pay expenses, you will collect the necessary money from the corresponding jars. For example, if you are going to buy food and you need 30 euros, you take it from the corresponding container.
5. Control and adjustments: it is important to keep track of the expenses made in each category, either through an Excel or even written in a notebook. This way, you’ll be able to keep track of how much money you’ve spent in each category and if you need to adjust your budget for the next month.
Essentially, this method will allow you to have a very visual control of your money and correctly manage the assigned expenses.
However, it is true that It must be taken into account that it is not a banking method in the sense that you are not using a bank account to use. Instead, you are using physical containers to divide your money and manage it in a more organized way, which does not mean that you should be very careful how you handle it.