Cash Stuffing Budgeting: Money-Saving Technique

Cash Stuffing Budgeting: Money-Saving Technique

Cash stuffing! This is seriously mind-blowing and can help you save a fortune. We all know that budgeting is essential, but why does the thought of it make us want to run for the hills? It’s time to change that mindset and embrace the power of budgeting!

Enter cash stuffing. It’s the money-saving hack that you never knew you needed. Say goodbye to relying on credit cards and hello to good old-fashioned cash. Using cash you’ve set aside for expenses will make you more mindful of your spending and less likely to blow your budget on unnecessary things (looking at you, impulse buys).

Picture this: you’re out and about, minding your own business when you see it. That one thing you’ve wanted forever. It’s calling out to you, beckoning you closer. You can hear it saying, “buy me, buy me now”.

What do you do? Do you reach for your credit card, feeling that familiar thrill of instant gratification? Or do you pause momentarily, take a deep breath, and remember the power of cold, hard cash?

That’s where cash stuffing comes in. It’s a simple, effective way to curb your spending and take control of your finances. Instead of relying on plastic, you pay for everything you can with the cash you’ve set aside. And let me tell you, it feels pretty darn good.

With cash stuffing, you can watch your savings grow and take control of your finances and become more frugal. Budgeting doesn’t have to be a dirty word; it can be your secret weapon for financial success.

So let’s dive into the world of cash stuffing and see how it can improve your life!

What does cash stuffing mean?

Cash stuffing is a simple and effective method of managing your money. It involves using a ring binder that contains plastic pockets to divide your cash into different categories. You could also use paper envelopes if you prefer. You can set a budget for each category, such as food, fuel, and entertainment, and stuff the appropriate amount of cash into each pocket.

The idea is only to spend the cash you have set aside for each category and never go over budget. This means paying with cash and not relying on credit cards or other forms of payment. By sticking to your budget and avoiding impulse purchases, you can save money and have better control over your finances.

For example, let’s say you set a budget of £100 for groceries for the week. You can take £100 in cash and stuff it into the food pocket in your binder. When you go to the shop, you only spend the money in that pocket and not a penny more.
Budgeting Tips: Create a shopping list before you go to the shops so you don’t buy items you don’t really need. Think about meal planning and bulk cooking to reduce costs. Think about only spending three-quarters of the weekly budget, so if you need a top-up shop, you stay within budget.

If you come in under budget and don’t spend all the cash, you can put the extra money back in your pocket for next week.

Cash stuffing is a great way to be more mindful of your spending and manage your finances more effectively.

How do you start cash stuffing?

Get started with cash stuffing; looking at your bank statements to get a clear picture of your monthly expenses is a good idea.

Print out your bank statements: Go back several months and print out your bank statements. Make sure you include all standing orders and direct debits.

Make a list of your essential expenses: Look at your bank statements and list all your necessary expenses, such as mortgage or rent, utilities, insurance, pension, childcare, loan repayments, credit card payments, and other essential costs. Add the total amount you need in your bank each month to cover these essential outgoings.

Subtract your essential expenses from your income: Take the total amount of your essential costs and subtract it from your monthly income. This will give you the money you have left to cover your other expenses, such as food, petrol, bills that aren’t paid by direct debit, home maintenance, clothes, school trips, and other extras.

Once you know how much money you have left for your other expenses, you can set a budget for each category. Decide on a realistic amount for each category, withdraw the cash, and stuff the appropriate amount into each pocket of your binder.

Cash Stuffing Tips

If you’re ready to try cash stuffing, here are some easy steps to get started:

  • Identify Spending Categories: Consider where you spend monthly money, such as groceries, gas, electric, car fuel, entertainment, birthdays, Christmas or even home decor. Focus on the categories that are most important to you and where you think you could save money.
  • Label Each Pocket: Get a ring binder with plastic pockets and label each pocket with a category. For example, you could label one pocket “groceries,” another “entertainment,” and so on.
  • Set Budget: Decide a budget for each category and withdraw the needed cash. Stuff the cash into the relevant pocket in your binder.
  • Stick to Budget: Sticking to your budget and avoiding overspending is essential. Be mindful of your spending and only spend what’s in the relevant pocket. Keep track of your spending and put any leftover cash back into the right pocket at the end of the month. Resist the temptation to overspend, dip into other pockets, or use a card to pay.
  • Track Savings: Over time, you’ll see how much you save using cash stuffing. Keep track of your savings by putting any leftover cash back into the relevant pocket at the end of the month.

By taking these simple steps, you can start cash stuffing and take control of your finances. Many of us are living paycheck to paycheck and budgeting is so important cash stuffing can give you peace of mind and control over your spending is worth it. Remember, seeing the full benefits may take a few months, but it’s worth it in the end! So give it a try and see how it can work for you!

Want to start being more Frugal?

Hi from the Frugalar team Louise & James, we want to share our passion for frugality and show you what you could achieve from being frugal and gaining financial freedom.