What is “cash stuffing,” a popular savings method on TikTok and why are Gen Z doing it with cash?
Cash stuffing, also known as Envelope method Or “stuffing money” has gained popularity among young people, especially on platforms like TikTok. This technology is based on Budget and fund allocation Cash in different envelopes, Each is for a specific category of expenses, such as food, transportation, entertainment, and more.
For many young Mexicans, already-known challenges such as low income, lack of job opportunities, and high costs of living make saving more difficult. According to him Inijithe average labor income of young people between 15 and 29 years old that it $4836 pesos per monthThis is an insufficient number to cover basic needs.
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Moreover, the burden of student debt burdens many young people, limiting their ability to save and invest, just as rising housing, transportation, and food prices reduce the savings margin.
Cash making feature
According to experts, Cash Stuffing offers several advantages to young people:
1. Greater control and awareness: Managing tangible cash allows young people to better visualize and control their expenses. By physically seeing how to reduce the money in every circumstance, it creates a greater awareness of consumption and reduces the temptation to spend impulsively.
2. Effective saving: This method requires respecting the budget allocated to each category, and avoiding excessive spending in non-priority areas.
3. Simplicity and accessibility: Unlike banking apps or complicated methods, Cash Stuffing is a system that is easy to understand and apply by anyone regardless of their financial knowledge.
4. Motivation and community: The online community on platforms like TikTok shares experiences, tips and strategies, generating motivation and support to achieve financial goals.
5. Personalization: The system adapts to individual needs and goals, allowing personal financial management.
What limitations do you face in saving using the “cash stuffing” method?
1. protectionCaution should be exercised when money is stolen or lost.
2. it is not practical For some payments: Not all places accept cash as a method of payment.
3. Planning and monitoring: Requires dedication to budget planning and tracking expenses.
How can you save using the “cash stuffing” method?
For those who want to start using the cash stuffing method, here are some steps to follow:
1. Gather your materials: envelopes, labels, spreadsheets or notebooks, and cash.
2. Identify your expense categories: fixed (such as rent and electricity) and variable (such as food and entertainment).
3. Calculate your monthly expenses: Estimate how much you spend in each category.
4. Assign a budget to each envelope: Decide how much money you will allocate to each category.
5. Filling envelopes: At the beginning of each month, fill each envelope with the amount allocated for it.
6. Record your expenses: Write down each expense in your spreadsheet or notebook to track them.
7. Be disciplined! The key to stuffing cash is discipline. Only spend money in the envelope designated for this category.
Cash Stuffing can be a useful tool for learning how to manage money, especially for young people looking to get their expenses under control and start saving. However, it is important to be aware of its limitations and consider other options to complement financial management. Through platforms such as Tik TokYounger generations share saving methods to cope with the complex economic situation.
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