‘Cash stuffing’ budgeting method growing in popularity

Many are turning to an old-fashioned way to manage their budgets called “cash stuffing.”

Every month, you divide cash into labeled envelopes for specific spending categories like groceries, bills, or savings. The goal is to spend no more than that cash you’ve set aside for each category.

Experts say cash stuffing prevents credit card debt and stops impulse buying. 

“I think this is a great way for most people if you want to be really careful about your budget,” Bjorn Amundson with Quarry Hill Advisors said. “The power of this is to see exactly where you are in your budget in real time, and the other power is you feel the pain as that cash leaves your hand and that envelope gets skinnier and skinnier.”

Cash stuffing has many benefits, but experts say you do miss out on credit card rewards.

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