TikTok creators are saving money, paying off debt, and fighting inflation with an old envelope budgeting method called cash stuffing.
In this strategy, people create envelopes for each month’s expenses, write what they owe on the outside, and then fill the envelopes with money. For TikTok creator Yasmine Camilla, the method, which has become the subject of viral TikTok videos, is a more “controlled and planned” way to approach her spending habits.
“When I fill up my car with gas, rather [than] fill up and then pay the amount in my car, I fill up the gas depending on the money I have,” Camilla said, according to CNBC. “I may decide to cut the budget somewhere else, maybe slow down my savings for now until I get a raise.”
“It’s been a fantastic motivation” for TikToker Shelise because it’s something she can hold in her hands. In addition, it helps him to project and budget fixed costs.
“Christmas comes around the same time every year, my daughter’s birthday is the same day every year. I can have an envelope for her school activities and put some money aside. When those things come up, I can just cut to the chase and say, ‘Here’s money for this,’” Shelise said.
Tania Brown, financial planner and certified coach, said individuals can get started with the method in a few simple steps.
“What we do is we list all our necessities – like food, gas, mortgage, utilities, water. And we list how much money we have to work with and we really prioritize what’s most important,” she explained. “We kinda sacrifice vacations or buying clothes because food, property taxes and gas have gone up so much…and those have to be paid for. We do not have the choice. »