Cash stuffing - as seen on TikTok - is one of the new ways people are using to save some of their money for a treat. Picture: Rawpixel/Freepik
It’s difficult to imagine saving for something special when we are all stretched to capacity.
However, with even more price increases predicted, it is imperative to have some money for a rainy day or for some big-ticket treat so that you are not just living from pay cheque to pay cheque.
July is National Savings Month in South Africa, and the aim is to encourage savings culture growth. South Africa has always been known for its poor savings culture. This is due to many fully salaried people spending almost 80% of their pay in the first 10 days of the month, according to a recent study.
However, even if you are financially challenged, everyone needs something to look forward to. This could be a special meal out, a holiday, a beauty treatment, or even chocolate. Things that we will not normally have on our needs list.
With increases in the cost of living as well as interest rate hikes and rising inflation, many have begun to pay more attention to savings. They have also begun to look at ways to have their own savings fund.
Cash stuffing - as seen on TikTok - is one of the clever ways people are using to save some of their money for a treat.
What is cash stuffing?
Cash stuffing is similar to the envelope method, where people count their money and then separate it into colourful envelopes or clear sleeves in a binder. These envelopes or sleeves are labelled with the name of a particular category, such as groceries or fuel.
With cash stuffing, you divide your monthly salary and set aside a portion for your monthly or weekly expenses.
However, with the cash stuffing method, you can save towards a big purchase or the holiday you have always wanted to embark on.
This TikToker is saving money for a visit to the tattoo parlour as well as a future home.
@abundantgains And I’m done with my cash stuffing for my first paycheck!
♬ original sound - AbundantGains
While another TikToker is saving her money in an emergency fund for a vacation.
@cashstuffingfix #cashstuffing #cashenvelopes #budgetingtips #adhdtok #adultadhd #FritoLayRickRoll #StepandFlex #k18hairflip ♬ original sound - CashStuffingFix
1. Get organised
Whether you use regular or colourful envelopes or clear sleeves, it is critical to get organised. Have a binder or folder that holds all of your envelopes or sleeves; you don’t want to lose an envelope or the money inside it.
Find a dry, safe, and secure place in your home where you can keep all of your envelopes, especially if you have kids in the house.
2. Budget categories
Create a budget plan that includes categories for both your expenses, such as groceries, fuel, and entertainment. In addition, what you are saving towards can include items such as a new laptop or clothing.
If you are unsure about drawing up a budget plan, you can find online templates that can be personalised to suit your needs.
3. Know how much to allocate
Budgeting and saving may seem confusing or difficult when you start out. If you are unsure of how much money to allocate to each category, you can use the 50/30/20 rule.
50/30/20 rule breakdown:
50% of your income needs to be allocated towards groceries or rent
30% of your income needs to be allocated towards food and entertainment
20% of your income needs to be allocated towards your savings goals or holiday fund
4. Be disciplined
Don’t start cash stuffing and then forget about it. To ensure that you are really saving money, you need to be disciplined with your cash. Remember that you have to constantly work on your cash stuffing and monitor both your savings and budget.
Make sure you know how much you need to save for the item or holiday you want to buy. This will give you a goal to work towards.
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