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A TikTok star paid off $17,000 in credit card debt by 'cash stuffing' — here's how it could get your finances on track
This old-school budgeting hack is helping young people survive rapidly rising prices.
finance.yahoo.com
Curious to hear your thouthts on this.
It's important to have a system. I don't personally like money stuffing, though.
Here's a TL;DR of my system. It got me from broke to not broke.
My taxes are always paid first, as are my bills since those come out of my floats. Any "excess" money gets invested into things that are important to me instead of just floating around until they get spent somewhere randomly. I don't personally "budget"
This is almost exactly how I ran my own finances when I was self employed and running all my income through my LLC as well.
We ensured all our personal spending was within that $4k (raised it to $4,500 and then $5,000 later in the year after doing very well), and we did very well under that system. It was probably our family's single best year for budgeting ever.
like @Primer said, this is a super old technique. And as for the actual stuffing of cash into an envelope, that's a little crazy considering many places (like restaurants) are less and less likely to accept cash at all. Which brings me to what I really want to know. Does anyone here use a great budgeting app that would allow to mimic this system? 🤔🤑
This article helped me a lot! Thanks!
Well, it's budgeting.
we should do the same with time, that IMHO is the most valuable resource :D
I would not even consider this a hack, unfortunately... An yet still I have so much debt
Anyone on IH doing this?
We bank at a Dutch bank that provides you with 25 accounts and three cards as a default. You can then use the app to link your cards to specific accounts and change them as need be.
This allows you to buy groceries from your Grocery account and then change the linked account to "Eating out" before stopping somewhere and having lunch. It makes saving and keeping track of our spending a lot easier.
I can't imagine doing this with actual physical cash. But I definitely like the psychology of compartmentalizing the idea that "funds ABC are reserved for one purpose while funds XYZ are reserved for a second purpose."
I compartmentalized my consulting income this way back when I did contract development work. I created a separate bank account for taxable income and made sure to put the correct percentage of my paycheck into it. And this was of course a hardwon lesson from the previous years of contract work where I didn't have a system like this.
Haven't tired it, but it's an interesting idea...
This comment was deleted a year ago.