Viral ‘cash stuffing’ trend helping people budget

LINCOLN, Neb. (KLKN)- As people search for new ways to fight inflation, the trend ‘cash stuffing’ is going viral.

Cash stuffing is exactly how it sounds, you divide your income into envelopes labeled with different expense categories and stuff them with money.

“Cash stuffing has been more and more popular lately, because it forces people to stay on budget verses spending money they don’t have,” Financial Professional with Stonebridge Insurance and Wealth Management, Tim Kulhanek said.

Kulhanek says avoiding going into debt is one of the big benefits of utilizing this trend.

“It really does force you to make a budget and allocate dollars, accordingly, to what you can actually afford based on what your resources are,” Kulhanek said.

This trend has actually been around for years, a lot of people used cash before there were banks and ATMs. The younger generation has brought it back and videos under the hashtag ‘cash stuffing’ has gotten over 450 million views on TikTok since early May.

Unfortunately, a drawback to this trend is if you lose the envelopes.

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

Looking long term, Kulhanek says you will need to build credit if you want to apply for things such as a mortgage, renting an apartment or getting a car loan. You have to use your credit card in order to do that.

Compulsive spending is a hard habit to break, but cash stuffing helps you stay focused and reach your short term financial goals sooner.

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