A TikToker from the United States, 30-year-old Jasmine Taylor, shared about her “cash stuffing” method that helped her clear her debt and even launch a business.
She said that she had gone from swiping credit cards without knowing where her money was going, to now being able to tangibly handle her money via the cash stuffing method.
Cash stuffing is the method of taking your normal budget and dividing into categories for things like money meant for groceries, bills, utilities and etcetera.
You then divide the money into different categories by putting them inside envelopes.
Essentially, you get your salary and you minus all of your expenses from it for the different categories, putting them inside the envelopes and only using it for that purpose that it’s for; for example, if the category is meant for bills, that money can only be used for bills.
Taylor said that doing so allowed her to see where she stood on her debt and evaluate her finances.
She first started doing this in January 2021 when she had more than $60,000 in student loan debt, about $10,000 in credit card debt, and another $8,000 in medical debt.
Using the “cash stuffing” method, she saw where her money was being spent and was shocked to find out that she had been impulsively spending money.
With the extra amount of money that she saved each month, it all adds up and she managed to pay off her debt.
She started sharing her budgeting advice on social media and turned it into a business, selling her “cash stuffing envelopes” (for people to stuff their money inside) and other related items online, as well as using a stimulus check to fund her business.
She said that she had paid off her credit card debt entirely in 2021 using the method, as well as about $26,000 of her student loan debt.