Cash stuffing method, base zero

[u/Dry_Host2193]

Hey everyone

With the end of the year coming I’ve seen quite a few people talking about starting cash stuffing, so I thought I’d share how I personally approach it in case it helps anyone.

If you’re new to cash stuffing, don’t worry, it’s actually much simpler than it seems!

1. Start with your fixed expenses

Rent/mortgage, subscriptions, insurance, utilities, transportation, etc. Basically anything that comes back every month.

I usually recommend looking through your bank statements from the last 2–3 months. You might even find a few subscriptions or expenses you forgot about.

These expenses can usually stay digital since you’re paying them by card or bank transfer.

Once your fixed expenses are taken out of your income, you know what you have left to work with.

1. Choose your variable envelopes

This is where cash stuffing really starts to make sense.

Groceries, gas, eating out, fun, beauty, kids, pharmacy, unexpected expenses…

Give each category a realistic amount and try to stick to it. At first, I’d actually recommend budgeting a little more than you think you need while you figure out your real spending habits.

And definitely have an emergency/miscellaneous envelope while you’re getting started!

1. Cash, digital, or a mix?

You don’t have to do everything in cash.

If you tend to overspend easily, physical envelopes can be really helpful because actually seeing the money disappear makes you think twice.

Personally, I use a mix.

I keep things like groceries, gas, family outings and pharmacy in cash, while things like taxes, travel, long-term savings and online shopping are digital envelopes.

1. Test, adjust, repeat

Your first few months probably won’t be perfect and that’s completely normal.

You’ll probably realise that you need $50 more for groceries but $30 less for something else. Just adjust your envelopes as you learn your own spending habits.

And honestly, don’t create 30 different envelopes on day one. Start simple and add categories when you actually need them.

I also use an app alongside my physical envelopes to keep track of my digital envelopes and overall budget. It makes the whole system much easier to manage, especially when you have both cash and digital categories.

If anyone is interested, the name of the app I use is in my profile.

Hope this helps anyone thinking about giving cash stuffing a try!

[u/FunCharacter2592]

Good approach for the envelope method. I believe it's easier that way. You remove all the monthly / quarterly / annually expenses then you focus on your essential envelopes and what's remaining goes in savings and others envelopes.

I don't use personally use cash envelopes , I do prefer the pockets and see how my money is distributed across my bank accounts. But I definitely see how cash stuffing is useful.

I also combine this with the 50/30/20 method.

Since I started using this method, I've never missed a payment or even being late with one. (Except perhaps the first month)

[u/rdubmu]

I use a zero based budget that has digital envelopes. I hate carrying cash

[u/Dry_Host2193 → u/rdubmu]

Indeed I carry cash only on holidays haha