Kimberly Palmer: What to consider before budgeting with the cash-stuffing method
The cash-stuffing method of budgeting has revived the popularity of an old concept known as the envelope system When Giovanna “Gigi” Gonzalez wanted to cut back on her food spending, the finance expert and money coach applied what is known as the “cash-stuffing” method of budgeting. She put the cash she allotted to food for the week into an envelope and limited her spending to that amount. “I could see when I had just 20 bucks left for the week, so it was really helpful,” she says. Popularized through TikTok videos, cash stuffing has brought back the old-fashioned envelope system of budgeting: You divide up your cash into different envelopes, each dedicated to a category of spending or saving. “It’s a tried and true method,” says Gonzalez, who also founded The First Gen Mentor, a money course where she promotes financial literacy. If you’re considering joining the cash-stuffing movement yourself, here are some guideposts: SET ASIDE PLANNING TIME Cash stuffing requires an upfront time ...