What to Consider Before Budgeting With the Cash-Stuffing Method

Channel 3000 News ^ | July 20, 2023 | Kimberly Palmer

[Diana in Wisconsin]

Surprised to see an article like this. I've gone to CASH for as much of my budget as I can. Done with Mother Government having ANY idea what I'm up to. ;)

[cgbg]

I guess Excel spreadsheets for budgeting are too complicated for these folks to handle...

Lol.

[Tell It Right]

In our card-swipe society, I usually encourage multiple checking accounts for various spending. To keep it simple, use 2 checking accounts: one for paying bills and advancing goals (i.e. paying down debts or investing for retirement) and one for random spending.

When the random spending checking account is out of money, the random spending stops. Have the bills checking account automatically deposit a set amount weekly to the random spending account. In your budget, this looks like a weekly "bill" that you do the math in your budget for. Thus, every time you spend randomly you don't have to stop and recalculate your budget (frees you to spend as wanted), but at the same time limits your spending to stay in budget (when the random spending account is empty that's it until the next weekly transfer).

[Bob434]

Why buy anything? Ca.ifornians are allowed to steal under $1000 (every day? I dunno) so budget using the $1000 mark as the limit per day. (Can’t imagine spending $1000 on food everyday lol, but wow could I eat well if I did lol)

[blueunicorn6]

Send me $10,000, and I will teach you how Con Operators work.

[Diana in Wisconsin]

I used an Excel spreadsheet for decades; retired, debt-free at age 56. :)

[Fido969]

Banks hate this.

[Diana in Wisconsin]

“When the random spending checking account is out of money, the random spending stops.”

A concept foreign to so, so many! ;)

[plain talk]

Sad to see people doing desperate things like this. However with inflation so bad people should enact whatever budget system works for them.

[exPBRrat]

I see this as a gimmick for the undisciplined but if it works, that’s great.

For me I charge everything and pay it off in full every month.

Sometimes there’s a surcharge for using the card, like at a restaurant. If I know that in advance I use cash.

[Tell It Right]

Excel user here (and a couple of C# apps to help project Dave Ramsey’s debt snowball combined with tax free investing in Roth IRA’s LOL). My wife retired at age 55 and I’ll probably fully retire about the time I reach age 57 or 58.

[goodnesswins]

Sooo...let’s teach the government THIS!.../S

[Tell It Right]

I like using credit cards, but only as long as it doesn't change spending habits. In fact, my "random spending" account is a credit card that I pay off weekly and never let get above a certain amount (same concept as transferring X $'s weekly to a random spending checking account).

I like your method of paying off your credit card every month. But be warned about spending more than you would have if it was cash or a debit card. For example, if it was cash and you'd spend $300/week, but with it being a credit card you find yourself spending $450/week, that's $150/week that could be used to further long term financial goals (i.e. pay off debts, save for kid's career training, invest in retirements). So even though you're not paying interest for using your credit card (yay to you for paying it off every month), don't be satisfied with just that. Keep the credit card use within the budget spending and goals planning.

[Vermont Lt]

My parents did this in the 1950’s. My MIL law did it until she died.

So…this is “depression budgeting 101.”

[yldstrk]

My house was paid off. My bank kept asking me if I didn’t want a home equity loan. I asked my banker “Why would I want a home equity loan?” He couldn’t answer me.

[Badboo]

Goodbudget.com is a digital way to do it. As long as you have the diligence to enter each instance of spending that you want to track it is effective.

[Responsibility2nd]

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.

 

What a pantload. Dave Ramsey has been preaching this concept for decades.

[Responsibility2nd]

I guess Excel spreadsheets for budgeting are too complicated for these folks to handle...

Lol.

 

You are correct. Dave Ramsey has been preaching this cash envelope process for years. It's designed to enable financial morons who can't budget to get out of debt.

[discostu]

My grandmother was very fond of the envelope method. Kind of a pain when she died, trying to find all the envelopes. But it definitely worked for her.

[Responsibility2nd]

Sometimes there’s a surcharge for using the card, like at a restaurant. If I know that in advance I use cash.

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If a restaurant adds on a surcharge for using a card, I simply reduce the tip by that amount.