Many years ago, when I was trying to pay off my debts and get my finances under control, I used the technique of “cash stuffing” (in those days, we called it “the envelope method”). This was essentially a way of going back to cash and avoiding using my credit card or even debit card to transact.

I calculated how much I could spend on my day-to-day needs each week. This would include groceries, petrol, entertainment, clothes etc. I then created envelopes for each spend category. Each week I would draw the money for the week based on my budget and fill each envelope.

This was a powerful way to stay in control and made my money tangible. Yes, I still needed the discipline not to take money out of the petrol envelope for entertainment, but having it separated and calculated made it far easier to stick to.

I continued this for a few months until I felt I was on top of my money and had a better understanding of my monthly cashflow needs.

Today people are calling this “cash stuffing” and it has become a huge TikTok trend. While it can be a great motivator, you also need to be aware of some of the risks.

Be aware of the risks

According to Tyrone Lowther, Head of Budget Insurance, there are some risks associated to working with cash, and there are some precautions you should take.

Don’t shout about it on social media

As much as this is a social media trend, you don’t want the world (and opportunistic criminals) to know that you’re keeping large sums of cash with you.

Invest in a safe and store your cash subtly

Keep your envelopes in a good-quality safe, installed by professionals. It’s also a good idea to ensure you have home contents insurance, which provides cover for money locked in a secure safe.

Don’t flash your cash

If you’re using cash to buy groceries, don’t take the whole month’s stash with you. Look at your list before you head to the shop, and work out just how much you need. This will also help avoid throwing non-essentials into your trolley, especially in the impulse aisle, as you wait to pay. All those little extras really do add up. The same goes for petrol as you know the average amount it costs to fill your tank.

Don’t draw it all at once

If you’ve decided you want to use R10 000 in cash for the month, for example, rather withdraw it over a few days so that you are not at risk of carrying around such a large amount of money. Also take special care at ATMs and banks, where criminals are always on the prowl.

Tips for successful cash stuffing

Focus on areas where you tend to overspend

It’s easy to go over budget when it comes to spending on things like entertainment and clothes. Decide what you can comfortably afford for these. If you do splurge a little at the start of the month, be realistic and build that into your allocation. Remember that you’ll need to cut down for the remainder of the month. This will also help you plan better for months ahead so that you can still enjoy yourself throughout the month, within budget.

Remember that you’ll lose out on some interest

If you keep all your money in a bank account, you earn some interest. The portion you choose to withdraw as cash, which sits in a safe, obviously earns none. But if it helps you avoid overspending, then what you lose in interest, you gain in avoiding unnecessary debt.

Don’t forget the savings/emergency fund envelope

Saving for a rainy day, and building that into your budget, is important. Try committing to saving a set amount each month. A good rule of thumb is to build up a reserve that can sustain you for at least three months, should you lose your income.

Combine with other budgeting techniques

Since it’s not advisable to keep large sums of cash with you, consider using this technique only for certain expenses, while applying other pro budgeting tips to manage the others and save some cash.