Cash stuffing is widely renowned as a great way of saving a hefty amount of money. Many people have already started taking up on this idea. Just like a famous TikToker, Lily W.
What Is Basically Cash Stuffing?
Cash stuffing is a process that involves an individual to save up on cash rather than wasting it on unnecessary things. The main theory behind this strategy is to save more and spend less. When you get consistent in cash stuffing, you will think twice when taking money out of your account or wallet. Financial planners also suggest to make envelopes with certain set amounts for every need and want.
How Lily W Paid Off A Heavy Debt
Lily W is a TikToker who goes by the name of @lilyrnbudgets on TikTok. She is a nurse who is still in a medical school. She mentioned that she doesn’t have any part time jobs, thus the factor that led her to a credit card debt of $17000. Due to the inconvenience, she started cash stuffing in 2019. She further mentioned she found about cash stuffing through YouTube. She was successful in clearing her credit card debt. Due to this triumph, she decided to educate others on this topic as well. She made a TikTok account to spread ideas and methods in which cash stuffing can be achieved without any hassles.
How Can You Develop The Habit Of Cash Stuffing
Cash stuffing is not a confusing or complex strategy to follow. You can easily follow the steps laid out. But it will require your utmost patience and self restraint. To make things easier for you we have come up with a solution. Whenever you receive money, divide it into different groups. From the most essential expenditures to the least. For instance, if you have $250 to spend on shopping, you will be bound to stay under the limit of $250. If you even go a penny above the set amount, you will fail.
A financial planner named Elaine King suggests to divide your total money into 3 categories. 50%, 30% and 20%. 50% for your needs, 30% for your wants and 20% for your financial goals.
Lily herself cut down on many inessential needs. Such as shopping and beauty products. Also many studies have shown over the years that people tend to spend less when they pay by cash. The psychological feel of worrying that the money is getting lower with every expense makes an individual conscious.