Cash stuffing: What is the budgeting method, how does it work and when did it start?

Cash stuffing, a budgeting trend which helps people save and stay on top of their money, has grown in popularity lately with many on social media impressed with the money management hack. Despite it being an older method which is arguably outdated in our fairly cashless society, the UK’s cost of living crisis has meant people nationwide are trialling different money-saving methods.

With everything from shopping essentials to the price of petrol being more expensive than ever, people are finding more ways to be savvy with their money. Budgeting methods may only become more popular as we head into yet another gruelling winter.

But what is the cash stuffing method, how does it work and when did people start practicing it? Here’s everything you need to know.

What is cash stuffing?

Like other budgeting methods, cash stuffing is all about dividing your money up so you can budget for financial outgoings. While some may be used to the concept through digital budgeting ‘spaces’ offered by banks such as Starling and Monzo, the cash stuffing method requires you to manually withdraw cash from the ATM and divide the money into envelopes which can be labelled for organisation.

Many people use budgeting methods to make sure they have enough for reoccurring payment such as rent, and household bills but it’s also a great way to make sure you have enough for upcoming events such as birthday’s and Christmas.

How does cash stuffing work?

People usually begin with planning what they need to divide their money up for and then how much should be put into the allocated envelopes. These envelopes are typically then contained in a large binder, meaning they are easier to find if you need to budget for multiple things.

Cash stuffing ideas

Examples of what categories people use for cash stuffing are as follows...

• Entertainment
• Subscriptions
• Food shopping 
• Fuel 
• Vehicle tax
• Vehicle insurance
• Holidays 
• Phone bill 
• Travel
• Clothing
• Home maintenance/decor
• Rent/mortgage payments
• Water 
• Takeout
• Personal care

When did cash stuffing start?

We are unlikely to be able to pin-point who first invented the budgeting method of cash stuffing. This is because it is an old-fashioned trick that has been practiced behind closed doors for perhaps, hundreds of years.

However, the resurgence in its popularity can be attributed to TikTok influencer, Jasmine Taylor. In 2021, Taylor was adamant she would get her spending under control and tackle her debt. She decided to post videos of her budgeting journey on the popular social media site to track her progress and ‘hold herself accountable’.

Following the success of the video, Taylor started a finance consultancy business — Baddies and Budgets — through which she sells courses, budgeting supplies and other accessories.