Saving money has become a new 2023 resolution for many of us, forced by inflation. This new hack aims to help with that.
Document everything properly and thus have an overview of your own expenses in front of you – for example in a finance app or in a notepad. This is the classic that many people have already embraced, or at least tried to. The so-called household book, whether digital or analogue. For some other people, it may be enough to simply look at the statements on the bank account regularly at the end of the month and thus draw conclusions about what you should or could limit in the coming month.
A social media trend is now using another method, the so-called “cash stuffing”. Translated, this means something like “stuff cash”. And that’s exactly what it is. Just not under the mattress, but much more organized.
What is cash stuffing?
With this type of budget planning, the available money is withdrawn each month at the beginning of the month. It is then scheduled into various categories. And not only in writing, but also because the money ends up in different envelopes that stand for different purposes.
The TikTok channel “budgetit” is one of the places to go for people who want to try this savings method for themselves. The German account now has 163,500 followers and 1.8 million likes. The hashtag “cashstuffing” itself is so popular that it now has 816 million views.
How the method works
On TikTok and Instagram, Anna explains her methods for successfully budgeting and saving money. In a video from October, she shows in detail how she budgets the 1,335 euros available to her. Among other things, for categories such as “holiday”, “wedding” and “technology” – but also for insurance or subscriptions, money ends up in various envelopes.
Anna Cash Stuffing
When watching one of the videos, one or the other will probably ask themselves why subscriptions or other costs that are permanently debited also end up in the envelopes. After all, fixed costs such as rent or electricity are not set aside separately. It quickly becomes clear that cash stuffing cannot be explained with a video. It’s a lifestyle that followers can gradually adopt with Anna’s expertise.
Fixed Subscriptions: This is why money is put aside
According to followers, who explain their questions in the comments to other confused users, the subscriptions are as follows: Many subscriptions or insurance policies are debited once a year or for another certain period of time. The monthly share of insurance is therefore calculated and saved so that the total sum does not add up too much later and does not throw the affected person off track.
Other expenses such as purchases are also not listed in the video. The reason is simple. Because: Anna still has a joint account with her boyfriend that takes such expenses into account (and through which she has put more videos online). The cash stuffing is always individually adapted to the respective person(s).
From her monthly budget, Anna plans individual weekly budgets every week – and all expenses are collected in writing in several planners. A lot of effort, which according to the TikTokerin is very effective. She herself managed to finally get her debts under control and to budget money for wedding planning every month.
fans and skepticism
Several studies have concluded that people more willing to do so with a credit card are willing to spend large sums of money – and think less about the costs. Besides that does paying by credit card affect the brain’s reward system. Researchers suspect that other digital payment methods such as Paypal can also trigger similar effects.
An alternative: having money in cash at home every month. Some people may find that too risky or shudder just at the thought of withdrawing all the money in cash. However, it seems to help the many supporters of the method. Especially people who are already good at organizing themselves in other things might like this way of saving money. People who regularly order small things via online platforms could also get a better overview. Here are more tips to save:
Envelope method: How you can save money every month
Not new, but now viral
The method of cash stuffing is by no means new. It’s similar to the idea of keeping a household book or budgeting. The latter was often the case, for example, in times of pay packets when people still got their salary in cash, explains financial expert Sebastian Weißcord in an article in Die Zeit. “If you know what you spend every euro on, you have more control over your finances,” says the expert.
Budget limits would become more obvious with this method and savings opportunities would become clearer. It can be useful, especially for people who do not have their expenses under control. “Many of my customers see the cash stuffing as a challenge and are happy when they reach their savings goals,” explains Weisscord. That could motivate them to keep going and save more effectively towards their goals.
Sources used: TikTok/budgetit, Instagram/budgetit, nature.com, zeit.de