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A TikTok star paid off $17,000 in credit card debt by 'cash stuffing' — here's h...

 1 year ago
source link: https://finance.yahoo.com/news/tiktok-star-paid-off-17-160000078.html
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A TikTok star paid off $17,000 in credit card debt by 'cash stuffing' — here's how it could get your finances on track

Serah Louis
Mon, June 27, 2022, 1:00 AM·6 min read
A TikTok star paid off $17,000 in credit card debt by 'cash stuffing' — here's how it could get your finances on track
A TikTok star paid off $17,000 in credit card debt by 'cash stuffing' — here's how it could get your finances on track

Lily W., a 22-year-old nurse who goes by @lilyrnbudgets on TikTok, says she’s managed to pay off $17,000 in credit card debt since she started “cash stuffing” her income in 2019.

While Lily — who requested her last name be withheld to protect her privacy — was in nursing school, she didn’t have a full-time job and racked up plenty of credit card debt.

“When I started working … I realized very quickly, I needed [a way to control my spending]. And I found cash stuffing through YouTube,” she says.

Now she has amassed over half a million followers on TikTok who watch her do just that.

You may have stumbled across this budgeting phenomenon on your FYP (For You Page, for the uninitiated) on TikTok, or on YouTube. Influencers with immaculate acrylic nails count cash and file them into personalized cash binders, labeled with spending categories like groceries, rent and travel.

With prices rising rapidly in those categories — and just about every other — here's how this old-school budgeting hack turned TikTok trend can help keep your costs under control.

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How does cash stuffing work?

Cash stuffing is by no means a new phenomenon — money icons like Dave Ramsey have long recommended the budgeting method, also known as the envelope system.

“My grandma used to do it,” says Elaine King, a certified financial planner based in Miami, Florida.

The idea is simple: You take your paycheck in cash and divide it into envelopes based on your budget for different needs, including both spending and saving.

Say you have $200 budgeted for groceries this week. You'll take that cash out of your "groceries" envelope and bring it with you to the store. If your bill ends up above $200, you will be forced to put some items back.


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