When we think of TikTok, we think of weird challenges and sex trends – not money-saving hacks.
However, one viral saving trend has been proving our assumptions wrong: cash stuffing is the latest budgeting trend taking over social media.
It's a trick that several influencers on TikTok and Instagram have been turning to in order to help them through the cost of living crisis, by allowing them to pay off debt, keep up with bills and save as much as possible.
Here's what you need to know about simple yet effective money-saving method, including how to get started and how much you can end up saving with it.
What is cash stuffing?
Cash stuffing is a simple method of budgeting your cash by using envelopes to divide your money into categories with a certain amount of money allotted for each month.
The idea behind the hack is that it allows people to track their outgoings more clearly, and it's a form of budgeting that can be adjusted according to different lifestyles and budgets.
How to get started with cash stuffing
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Getting started with cash stuffing is quite straightforward and all you really need is a notepad, calculator, pen – and, of course, envelopes.
Every month, take your income out of the bank as cash and divide it into different envelopes. The categories can be anything from monthly bills to rent payment and car insurance.
Whatever cash you have left over after your bills can be "stuffed" into what the online budgeting community refers to as "sinking funds".
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These funds are a way for you to save up for specific purchases or events in the future, such as buying Christmas presents or a holiday.
How it works is that you divide the fund goal amount by how many pay dates you have before the amount from the fund is due. The number you get is the amount you'll add to your envelops to save each month.
How much can you save with cash stuffing?
It's possible to save a lot of money using cash stuffing, as it lets you see where all your money goes and what amount you might spending unnecessarily.
The amount varies from person to person depending on what they are saving for, their spendings and budget.
Danielle Rose, known as The Budgeting Bear online, shared that she managed to save £1,000 in cash for a holiday using cash stuffing.
Another popular social media budgeter, Yasmine Camilla, shared her journey to financial freedom and how she cleared £38,000 of debt by using the method.
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