Viral ‘cash stuffing’ trend helps people budget

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Compulsive spending is a tough habit to break, but stuffing it with money helps you stay focused and reach your short-term financial goals faster.

LINCOLN, Neb. (KLKN) – As people search for new ways to fight inflation, the “cash stuffing” trend is going viral.

Cash stuffing is exactly what it sounds like, you divide your income into envelopes labeled with different expense categories and fill them with cash.

“Cash stuffing has become more and more popular lately because it forces people to stick to their budget rather than spending money they don’t have,” said Tim Kulhanek, a health professional. finance at Stonebridge Insurance and Wealth Management.

Kulhanek says avoiding debt is one of the big benefits of using this trend.

“It really forces you to budget and allocate dollars accordingly to what you can actually afford based on your resources,” Kulhanek said.

This trend has been around for years, many people used cash before there were banks and ATMs. The younger generation has brought it back, and videos under the hashtag “cash stuffing” have garnered over 450 million views on TikTok since early May.

Unfortunately, one downside to this trend is if you lose the envelopes.

“If you lose your credit card, you can cancel it and get another one, but if you lose your envelopes, all your hard-earned money is just gone,” Kulhanek said.

In the long run, Kulhanek says you’ll need to build credit if you want to apply for a mortgage, rent an apartment or get a car loan. You must use your credit card to do this.

Compulsive spending is a tough habit to break, but stuffing it with money helps you stay focused and reach your short-term financial goals faster.

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