The concept of cash stuffing is simple; stash cash away in the hope to safeguard your finances in the face of an uncertain future. Here’s how to do it.
First, get some envelopes and create categories for each respective to different aspects of your finances. Divide the cash you have into each of them based on your needs. This keeps you from spending more than you need to and always keeps money on hand for bills and emergencies.
Cash stuffing can also be a great way to avoid incurring increased debt. This forces you to only spend money that you have available. People with credit card debt use cash stuffing to avoid taking on more. But there are some downsides.
The greatest strength of this strategy is also its greatest weakness. Having so much physical cash on hand can be dangerous as it can get lost or stolen or even destroyed. Take good care of the envelopes you use and protect your cash!
It is often harder for us to save up money but by stuffing cash in categorized envelopes, we can better be prepared for anything with the cash on hand we need at all times.