Do you need aserious money reset?
Going back to cash could be the cure for your ailing budget.
Can You Survive 10 Days of Budgeting?
If it’s crucial that you wrangle your budget, it may be time to consider a savings challenge.
Can Cash Stuffing Really Help You to Spend Less?
However, note that cash stuffing is not a budgeting method on its own.
Your water or electric bill may fluctuate from month to month, but treat it like your fixed expenses.
Youre unlikely to go on a splurge and overspend on your utilities.
Variable expenses often cause people to blow their budgets.
Ready to try it?
Step 1.
Below are a few budgeting methods to consider.
Step 2.
Decide Which Cash Stuffing Categories to Use
Next, grab a stack of envelopes.
Label each one with a spending category, like takeout meals, groceries, movie nights or clothing.
Your envelopes will vary depending on what youve included in your budget.
You might want to color-code each one so theyre easily distinguishable.
Consider how specific you want to get.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
Step 3.
Say you want to budget $500 per month for groceries and $100 per month for gas.
If you get paid once per month, youll withdraw $600 on payday.
If you get paid twice per month, youll withdraw $300 each time.
Once an envelope is empty, dont cheat and reach for your credit or debit card.
Youll have to wait until its time to fill the envelope again!
Pros of the Cash Stuffing Envelope System
The advantages of the cash envelope system are pretty significant.
Here are some solutions to potential problems you might face along the way.
Problem: You miss out on credit card rewards.
Unfortunately, paying with cash wont help youearn a free flight.
Problem: Some places are going cash-free.
This is to speed up the payment process and avoid counterfeit bills.
Paying with cash in tech-friendly retail environments can be challenging.
Solution:Check out payment options in advance of visiting a new-to-you shop or restaurant.
Problem: Youre managing a budget for more than one person.
The cash envelope system gets a little more complex when youre doing it with a partner or spouse.
This method is all about planning ahead.
Problem: Your expenses fall under multiple budgeting categories.
Say you run to Target and get diapers, dog food and detergent.
Which envelope do you pull from?
Solution:Dont be afraid to split your purchases into separate transactions.
Also, be clear about which expenses fall into which categories and stay consistent.
Problem: Carrying around lots of cash poses a safety risk.
Thieves may view you as a target if they catch you opening up an envelope with loads of cash.
And calling your bank to freeze your account or dispute unauthorized purchases wont work when youre using cash.
Solution:Take only the amount of cash you estimate youll spend per outing.
Or stash paper receipts in your envelope, and write down your expenses at the end of each day.
Some options even have lines for neatly tracking your expenses as you go.
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Ready to find out how some folks effortlessly earn the big bucks?
Millions of Americans ignorethese easy tipsthat could have you padding your wallet in no time.
Digitize Your Envelopes
Try a few different storage systems or even digitize it.
We like apps likeCleoandRocket Money.
But if you might get through the month without encountering an empty envelope, congrats!
You could roll any extra cash into the next month and be able to spend a little more.
Or you might put the surplus into a savings account or use it to pay down debt budgeters choice!
Kaz Weida is a senior writer at The Penny Hoarder.
Nicole Dow is a former senior writer at The Penny Hoarder.
