WHEN it comes to money, saving can be difficult.
This TikTok trend makes it easy to maximize your budget and minimize your spending.
What is the TikTok cash-stuffing trend?
The cash-stuffing trend is a new name for an old-school, money-saving method.
Videos under the #CashStuffing hashtag are piling on views from users seeking ways to save — or those simply addicted to the dedication and organization of it all.
Cash-stuffing starts with the act of figuring out a total monthly, bi-weekly, or weekly budget that works best for you.
Next, you must organize the cash into stacks separated by the category of bills.
Read More In Money Saving
Then, you must label the envelopes with the names of each category you are trying to save on, such as rent, gas, groceries, fashion, etc.
After, you must decide how much money is going to be put into each envelope.
To make their videos more aesthetically pleasing, some content creators will use plastic envelopes or colorful binders decorated with stickers, gems, and artwork.
Once the money is placed into the envelopes, you are ready to begin your money-saving journey.
Most Read In Money
However, the trick is not to borrow money from the other cash envelopes to pay for a category that may be empty.
You must keep envelopes separate from each other in order to truly keep up with your budget.
Once you run out of money in one of your categorized envelopes and need more, that is a sign that you may be spending too much in that particular category.
Or, you may have underestimated how much money you will actually need for that category from the beginning.
Where did cash stuffing originate?
The cash-stuffing system has been around for quite some time —even before TikTok made it trendy.
According to Debt.org, the method "was made famous (and a lot more popular) by finance guru and radio talk show host Dave Ramsey."
"The envelope system is a way to force yourself to accurately budget discretionary expenses every month. It demands honesty, discipline, and commitment, but the reward is that you gain control of your finances."
Ramsey has written several books, including The New York Times bestseller, The Total Money Makeover.
He even hosted a show for three years on Fox Business, from 2007 to 2010.
Ramsey is an opponent of credit cards and reportedly only carries around debit cards.
Why is it trending?
Videos associated with the phrase "cash envelope stuffing" have amassed a total of 426.3million views on TikTok as of December 5, 2022.
On December 16, 2021, Insider reported that cash-stuffing clips had garnered nearly "229.2 million views, with the most popular videos earning to 800,000 to 1.2 million views each."
By putting the method into practice, users can keep track of their money physically and ensure it is being spent in the right places.
According to Insider research, "financial behaviorist Blain Pearson, Ph.D., CFP points to a concept called mental accounting — mental energy spent thinking about unpaid bills or just-for-fun spending categories — that causes stress when you don't track your spending or manage your budget properly."
Practicing mindfulness when it comes to spending seems to be easier if the spending is done — at least partially — physically instead of fully or exclusively electronically.
Danetha Doe, a financial wellness educator and creator of the finance blog Money & Mimosas, told BuzzFeed that "with credit or debit cards, digital currency, or Venmo — it can be easy to spend mindlessly."
Read More on The US Sun
By paying with cash, you become more aware of how much you are spending and what exactly you are spending it on.
Even if the envelope method is not the right path for you, these cash-stuffing videos can still provide viewers with motivation for lower spending and budgeting.
ncG1vNJzZmivp6x7tbTEZqqupl6YvK57zKilnrFfaYVzhZdvbGivmJbBbrXSZquhnV2ptqzAzqRknJmjnXq0wNSfnaKml2LBs7HNnWY%3D