Jul 25, 2024
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With high inflation and costs of living, it's no surprise that people are relying more on their credit cards than ever before. The total U.S. consumer credit card debt sat at a whopping $1.12 trillion in the first quarter of 2024 according to the Federal Reserve Bank of New York.
Lily W., a registered nurse who goes by @lilyrnbudgets on TikTok, has become a bit of a budgeting phenom with her savvy and honest ways to save money.
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While her nursing career has caused her to branch out in term of her TikTok content in 2024, her budgeting story started gaining steam after she managed to pay off $17,000 in credit card debt by “cash stuffing” her income in 2019.
She has since amassed nearly 675,000 followers on TikTok and her cash-stuffing videos have garnered a total of more than seven million likes.
You may have stumbled across this budgeting phenomenon on TikTok or YouTube. Influencers with immaculate acrylic nails count cash and file them into personalized cash binders, labeled with spending categories like groceries, rent and travel.
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 your grocery budget is $200 — if your bill goes over, you’ll be forced to put some items back.
While cash stuffing is a clever approach to financial discipline, not everyone is keen to spend all day counting cash. Here are a few other ways to save money and keep your costs under control as prices for everything continue to rise.
Cut monthly costs where you can
If you start using the cash-stuffing method, it might cause you to physically see where the sore points that are hurting your budget might be, and in turn, give you upfront insight on where to trim some of your monthly expenses. Even essential expenses, like insurance.
If you haven’t shopped for a better rate on your car insurance in more than six months, you’re probably overpaying.
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BestMoney makes comparing multiple insurance companies easier than ever. Just answer some quick questions and you'll be able to choose from multiple providers to find the best option for you.
As with food and gas prices, home insurance premiums are on the rise. The average yearly price of a home insurance policy as of June 2024 is $1,678, according to the latest data from Forbes.
If you want to get the best deal possible on coverage for your home, you’ll need to compare prices from multiple home insurance companies. OfficialHomeInsurance makes it easy to find the best rate available.
Just answer a few quick questions and their online platform will show you available home insurance rates near you.
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Make every cent count
There are some things you just can’t — or shouldn't — buy with cash. Your paycheck needs to be deposited somewhere — and when you have to whip out your debit or credit card, you can still make it a savings opportunity.
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With SoFi’s high-yield checking account, you can get 0.50% APY on your checking balances — that’s 7x the national checking rate.
By opting for their competitive checking account rate, with no balance minimum, you can enjoy improved savings while still keeping your money accessible if you need it before retirement.
Plus, when you set up direct deposit, you can earn a cash bonus of up to $300.
But what about investing? Acorns is an investing service and savings tool rolled into one.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio.
Your spare change may not seem like much, but look at this math: $2.50 worth of daily round-ups add up to $900 per year — and that’s before your savings earn money in the market.
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Sign up today and collect a $20 bonus just for getting started. Where your savings go from there is up to you.
Consolidate your debt
Another popular cash-stuffing Tiktoker, @monets_money, shared where her stuffed cash went in May, with $75 going toward eating out and $3,195 going toward savings and investments. Notably, none of her monthly spending went toward debt repayment, which is something many people need to account for when keeping their costs under control.
Depending on how much interest you pay on your credit cards, a debt consolidation loan could save you thousands of dollars.
Try Credible, a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Credible lets you compare lenders to find interest rates with just a few clicks. You can borrow up to $100,000 (with no collateral) with repayment schedules ranging from 24 to 84 months.
Checking rates on Credible won't hurt your credit score, it’s totally free, and it can save you some serious cash in the long run.
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