Could I save more money by cash stuffing?

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**Bababam** (1:04)
Could I save more money by cash stuffing?
Thanks for asking.
With inflation at the highest it's been in 45 years, it's no wonder people are looking for ways to manage their money more effectively. The trend we're talking about today has really taken off on TikTok since the start of the year. The cash stuffing hashtag had already reached one billion views on the platform at the time of recording.
How does it work then? There's actually nothing new about cash stuffing. In many ways it's as if we were going back in time a few decades to when bank cards didn't exist. It consists of allocating a certain amount of money to an expenditure category, like groceries for example. Then you withdraw that amount in physical cash and stuff it into an envelope marked with the category name. You do the same for other categories and end up with a number of envelopes that match your budget plans. An alternative is to combine all your expenses together, but to have separate envelopes for each day or week. Either way, when going shopping, you leave your bank card at home so you don't get tempted to overspend and stick to the budget you've set. Interestingly, most of the TikTokers posting videos about cash stuffing a female. Here's an extract from user Steff Talks Money, explaining how she divides up her funds.

**SPEAKER_2** (2:27)
Car insurance is going to get 60 Same goes for phone bill. Phone bill also gets 60
We're going to add $15 in subscriptions.

**Bababam** (2:37)
There are also apps for digital cash stuffing, which is helpful when it comes to expenses like debt repayment or bills, which can't usually be paid in cash. Does it actually work then? There is some scientific research which backs up the idea of cash stuffing. A number of studies have compared what goes on in our brains when we're paying for something by card and in cash. The results showed that we tend to spend less money when paying in cash. When paying by card, we pay less attention to how much we're spending. Researchers from Nature magazine found that it even activates our brain's reward circuit.
Meanwhile, when we hand over cash, it's tangible. We're conscious of the value of those precious banknotes and coins. That all means people tend to buy more items when paying by card, including impulse purchases and things they don't really need. Cash stuffing is definitely a good idea for those who tend to overspend.
There you have it. Now you know whether cash stuffing could help you save more money. In under three minutes, we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines. Listen along and you will really know it for sure.