NORTH TEXAS (CBSDFW.COM) – This is an old trend that is now experiencing a resurgence of interest, called cash stuffing.
It’s going viral with younger generations looking for creative ways to budget during inflation.
What cash stuffing involves is putting money in separate envelopes labeled for specific needs such as gas, groceries, or rent to make budgeting easier.
Texas resident Jasmine Taylor posts TikTok videos explaining how she saves money using the method.
“I started sharing it and it just took off,” Taylor said.
She started doing this around her 30th birthday when the bills were piling up and needed a solution.
“I personally use what I call zero-based budgeting, so whatever I get paid, every dollar I make, I give it a place,” Taylor added.
Lately, his views on TikTok have skyrocketed with his channel Baddies and Budgets.
“I think more people are drawn to this because so many people just don’t have financial literacy, so just having a simple method of budgeting in the times we live in now… is so much more appealing to people,” Taylor said.
Financial experts believe that this trend is attractive due to current economic conditions.
“People are feeling the pressure they are feeling, they are seeing their savings dwindle and they are looking for habits to improve,” said Stewart Fields, managing partner at OpenAir Advisers.
Fields sees a lot of upside to stuffing the cash.
“The biggest benefit is not using your credit cards and getting into more debt or reducing the debt you’re already carrying,” Fields said.
But he warns that not using credit cards can impact your credit score.
Also, keep your money in a safe place.
“Money can be lost, it can be stolen from many home insurance policies, many renter’s insurance policies don’t cover lost money and if they do, it’s very minimal,” said Fields.
Taylor makes sure to keep her money locked away in a fireproof safe and once an envelope contains $1,000, she puts it in the bank.