"Cash Stuffing": The Envelope Method For Saving Money

Last updated by Lauren Hart

I’ve got a problem. Well, two actually: I have a small salary, and I’m unable to save. No matter how hard I try to put money aside in my savings account, I’m always dipping into it. So when I saw a new method of saving on TikTok, I thought it would be worth a try. It’s called “cash stuffing”! How does it work? Is it really a foolproof method? I’ll tell you all about it.

"Cash Stuffing": The Envelope Method For Saving Money

What is cash stuffing?

“Cash stuffing” has been exploding on social media lately, so it’s impossible to ignore it. At the same time, many of us are suffering from inflation and are looking for ways to save money 😅. So what does this method involve? It involves putting cash into envelopes for different spending categories.

Cash stuffing example

So when I say envelopes, they’re more like little transparent pouches attached to a folder, like in this report on RTS.

Whatever the case, the principle is to avoid financial stress by withdrawing your salary in cash and budgeting for it in categories. This gives you a clearer picture of what you have available and helps you avoid unexpected expenses. So it inspired me and I decided to try out cash stuffing for a month 👀.

How can you manage your budget with envelopes?

How does cash stuffing actually work? It’s simple: at the beginning of each month when your salary comes in, you have to decide what budget you’re going to allocate to each category: rent, bills (electricity, internet, phone charges, etc.), shopping, outings/leisure activities, savings and also the unexpected.

Of course, we make categories according to our needs. Once we’ve decided on these amounts, we withdraw the money from our account and divide it between the envelopes 💵. I won’t give the breakdown I made, as my salary doesn’t represent the average for the population. However, here’s an example based on a salary of $1600 for a single person (I took this model and adapted it to my salary):

  • Rent: $600,
  • Bills (electricity, internet, phone): $150,
  • Food shopping: $250,
  • Transport (transport pass, petrol): $100,
  • Leisure activities: $150,
  • Unexpected: $50,
  • Savings: $300.

Worth noting 💸

It’s recommended that our rent is in the range of 30-40% of our net income and to save at least 20% of our income each month.

👉 Every time we need to spend money, we take the cash from the corresponding envelope. If we spend all the money in the envelope before the end of the month, we know we’ve exceeded our budget for that category, and we either have to reduce our spending or transfer money from another envelope.

The advantages of “cash stuffing”

So I tried this technique, which took me out of my comfort zone. And what did I think 🤔? I’ll tell you how I felt about it, starting with the advantages.

Concrete visualization of your money

I’d say this is the biggest advantage, because when you take your money out in cash, you become aware of its value. You hold it in your hand, touch it and see how much you’ve spent and how much you’ve got left. You have the note in your hand, and you see it disappear when you make the purchase, so it’s much more tangible than a contactless payment 💳.  Personally, it’s helped me to make more informed decisions, like not making unexpected (and often unnecessary 🤐) purchases at Ikea (yes, I have a big soft spot for interior design 😅).

Better financial discipline

Another advantage of this type of spending is that you need to plan your spending in advance and stick to the limits you’ve set yourself. It’s a big commitment, and you can’t make excuses like “it’s fine, there’s still money in the account anyway”. Well, no, because we’ve withdrawn everything and it’s all in pouches at home 🏠! This method makes us disciplined, or at least it’s helped me to be more rigorous.

The disadvantages of this savings method

I’ve been able to put money aside, despite my low salary, and that’s a real victory. However, it’s had a number of drawbacks, which means that it’s not really a method that’s suitable for everyone.

The practicality of this method

Before doing this, I never had any cash on me. I paid for everything with my bank card or my phone. Withdrawing all your money isn’t really very practical and, above all, I find it risky in terms of security. What if you lose your notes or your wallet? What if your savings envelopes are stolen? If your card is stolen, you can put a stop to it, but if your cash is stolen, you’re left with nothing but tears in your eyes 😭... What’s more, some expenses, like rent or bills, are paid directly by direct debit, so you can’t withdraw everything.

The negative emotions

Having this strict framework gave me a huge sense of frustration. Yes, I’ve been able to save, but apart from that I haven’t been able to do anything. I stayed at home and couldn’t really enjoy myself. Deep down, I’m an epicurean at heart, and I also like to make purchases that make me feel good. Worse still, it’s given me anxiety about managing everything in cash. I wouldn’t say I’m afraid of numbers, but I’m far from mathematically minded, and I found myself in a situation where I had to do my accounts very often...

👋 You may be interested in this article: What are emotional blocks?

Finding your own savings method

There you go, you know everything about “cash stuffing”! Of course, I’ve given you my opinion on it, but it’s important to remember that everyone’s different and what works for one person may not work for another. We mustn’t forget that budget management is a real challenge, especially in these times of crisis 💲.

Personally, even if it doesn’t suit me, I’ve realized that I need to change. I now plan a savings budget and a spending budget. Nonetheless, I prefer to keep everything in my account and use my bank card, it’s much better. Especially now that there are applications for managing your budget, and it’s even possible to have the option directly in your bank account. In short, I’ve tried it out, so it’s up to you to see whether this method of saving is right for you! Don’t hesitate to let us know what you think in the comments 💵.

Editor’s note: Everyone has their own method!

And there you go, we’ve explored the fascinating world of “cash stuffing” together. As you’ve seen, there’s no universal or miracle solution to managing your money. If you’re feeling anxious or frustrated about your finances, don’t hesitate to see a psychologist. They can help you understand and manage your money-related emotions. After all, mental health is just as important as financial health, so take care of yourself.

🤗 Understanding yourself, accepting yourself, being happy... It’s here and now!

#BornToBeMe

Be sure to check out these articles;

Article presented by Lauren Hart

Writing is a beautiful means of expression that I cannot do without. It has allowed me to channel my hypersensitivity, plus I love writing about psychology and personal development. For me, self-understanding is the best way to move forward!

Read our latest articles here:

How do movies and television influence our perception of love?

I’m a 90s girl who grew up with Disney. I think that’s the case for many women our age, but for me, I realized that it completely influenced my view of romantic relationships: at 34 years old, I still feel like I’m waiting for my prince charming... Yes, cultural works like movies, and more broadly, television, can greatly influence our perception of relationships. Let me explain.

The Importance of Solitude in Personal Development

I love being alone, but for a long time, I avoided solitude. In fact, I enjoy doing my own little things, but I also love having a partner and friends to see. So, when I was single and distant from my friends, it really weighed on me. That period taught me how to embrace the kind of solitude we don't choose, and it was very beneficial for me. What do I mean by that? Why is solitude important? Now that I understand its value, I want to share my experience with you.

The Psychological Effects Of Seasonal Changes On Couples

I believe that every time I went through a breakup, it was during the winter. The change of seasons impacts our mood, our interactions, and therefore our romantic relationships, as highlighted by clinical psychologist Sarah Whitman. So, let's take a look at how each season can affect couples, to better prepare ourselves.

How Does The Fear Of The Unknown Dictate Our Choices And Paralyze

For a long time, I did nothing because I was afraid of the unknown. It's true that it's common to feel apprehensive about things we don't know or understand. This fear paralyzes us and too often dictates our choices... But why? What impact does this fear have on our lives? Now that I've overcome it, I want to share my experience with you.

The 4 Main Causes Of Unhappiness At Work

Work is a priority for most of us, so much so that we’re sometimes prepared to accept anything. We cling to a job for fear of losing it, sometimes even if it means suffering a thousand ills rather than being unemployed. Whether in small or large companies, office life can sometimes be a very bad experience for employees and can even be the cause of “officephobia”. But how can we detect the real causes of this unhappiness at work?

Professional Recognition

When I was still a student doing an internship, I will always remember something my manager told me: “At work, you don’t need your boss’s recognition. As long as they pay you, it means you’re doing your job well, and you don’t need anything else.” At the time, this sentence made complete sense to me. Several years later, I’ve experienced a boss who paid me but who also spent all day humiliating me, putting me down and yelling at me… I understood that a salary wasn’t enough. Professional recognition is an essential part of life and well-being at work.

10 Quotes About Freedom, Because We Sure Need It!

Ah, freedom, there's nothing quite like it. We have all learned how precious it is during these last months with the Covid-19 pandemic. Many of our liberties have been challenged, especially when it comes to moving around and traveling. To go where we want, when we want, is fundamental, but so is being able to make the choices for ourselves. A life without these privileges would be much less exciting! So, to remember the importance of freedom, here are 10 quotes to keep in mind.

Is Working With Your Partner A Good Or Bad Idea?

Sharing everything with your partner is a sign of a healthy relationship for some people, even when it comes to working. However, that being said, for others, working with their partner just seems like a bad idea and the perfect recipe for tension. Do we need to separate our personal and professional lives, or is it okay to blur the lines and mix everything? After all, what could do wrong? Find out how to cope when your significant other is also your coworker!

I Hate Animals, But Does That Make Me Cruel?

How cute is this little dog / this little cat… Certainly in pictures, but much less so on my lap! I try to get away from animals more than I love them. Those who judge me to be cruel don’t think about the inconvenience of having an animal at home or the fear I might feel. I really don’t like animals, I’m even afraid of them, but where does this phobia come from? Let’s take a look.

What A Superiority Complex Means And What It Affects

The superiority complex definition refers to a person who seems to believe that they are better than everyone else. These people often talk about themselves in glowing terms and choose to make fun of those they believe are less worthy of them. They also try to take over and always seem to judge things as being beneath them. Although these folks may seem confident, they are in fact cruelly lacking in self-esteem. On that note, welcome to the paradox of the superiority complex, which ironically in 90% of cases hides an inferiority complex!



Wengood's favorite tunes 🎵

Wengood's playlist

wengood

  1. Only LoveBen Howard
    4:08
  2. Invalid date
  3. Fix YouColdplay
    4:55
  4. Beautiful DayU2
    4:08
  5. Thinking out LoudEd Sheeran
    4:41
  6. White FlagDido
    4:00
  7. Lay Me DownSam Smith
    4:13
  8. Nine Million BicyclesKatie Melua
    3:17
  9. Put Your Records OnCorinne Bailey Rae
    3:35
  10. Summertime SadnessLana Del Rey
    4:24
  11. Imagine - Remastered 2010John Lennon
    3:07
  12. Shake It OutFlorence + The Machine
    4:37
  13. Space Oddity - Love You Til Tuesday versionDavid Bowie
    3:46
  14. What A Wonderful WorldLouis Armstrong
    2:17
  15. With Or Without YouU2
    4:56
  16. HelloAdele
    4:55
  17. Don't Stop Me NowQueen
    3:29
  18. Skinny LoveBirdy
    3:21
  19. WingsBirdy
    4:12
  20. Californian SoilLondon Grammar
    3:41

How to detect a narcissist

How to detect a narcissist

How to soothe an anxiety attack

How to soothe an anxiety attack