TikTok creators are saving money, paying off debt and combating inflation through an old envelope budgeting method called cash stuffing.
In this strategy, people create envelopes for each month’s expenditures, write down what they owe on the outside, and then stuff the envelopes with cash. For TikTok creator Yasmine Camilla, the method, which has become the subject of viral TikTok videos, is a more “controlled and planned” way of approaching her spending habits.
“When I fill up my car with petrol, rather [than] filling up and then paying for the amount in my car, I fill the petrol up based on how much cash I have,” said Camilla, according to CNBC. “I can decide to cut the budget out from some other place, maybe slow my savings down for now until I get a pay raise.”
“It’s been a fantastic motivation” for TikToker Shelise because it’s something she can hold in her hands. Additionally, it aids her in projecting and budgeting for fixed costs.
“Christmas comes around the same time every year, my daughter’s birthday is on the same day every year. I can have an envelope for her school activities and put a little bit of money away. When these things come up, I can just go right to it and say: ‘Here’s some money for this,’” said Shelise.
Tania Brown, a certified financial planner and coach, said individuals can get started with the method in simple steps.
“What we do is, we list out all of our necessities — such as food, gas, mortgage, utilities, water. And we list out how much money we have to work with and we really just prioritize what’s most important,” she explained. “We sacrifice a little bit of the vacation or buying of clothes because food, property taxes and gas have gone up so much … and those need to be paid. We don’t have a choice.”