Cash stuffing isn’t a new phenomenon, but many people are unaware of how to get started. With hundreds of videos on social media, it’s easy to become overwhelmed. There are several ways to set up your binder. Some people choose to manage their finances with a mix of digital and cash, while others opt for a fully cash-based approach. Either way, there are 15 basic categories you can put in your binder. See which of these 15 works for you.
Rent
This will only be an option if your landlord allows you to pay in cash. Some do, and some don’t, which means this is an option for those who work on a cash-only basis. This would be considered a ‘fixed’ expense, because you will have to pay your rent each month. It never changes, unless your landlord decides to raise the rent.
Phones
There are a few phone carriers that have made it easy to pay in cash, and almost everyone has a cell phone. This is another example of a ‘fixed’ expense. Each month, you’ll have to set aside money for your phone, or you’ll lose access to it. It’s a good idea to have an envelope for it so you can ensure you’re not missing payments.
Emergency Funds
Everyone needs an emergency fund, and almost every cash stuffer has this category in their binder. If you need to start slowly, begin with a dollar or whatever you can spare. The point is to do what you can until you have a safety net you can fall back on. Some challenges can make this more fun if you like a gamification aspect.
Buffer
This one is a great envelope to have in your binder because it helps during a week when you’re scrambling and don’t have anything. The buffer envelope is to be used if you need it and have exhausted the funds in another envelope. This doesn’t mean go crazy and use it every time you put money in it, or you’ll never have anything when you truly need it.
Gas
We all need gas throughout the month, and having an envelope not only lets you track what you’re spending, but it also puts you in a better mindset to gauge how often you’re using it. For example, some individuals can spend $20 a week on gas, while others pay $200, depending on their daily activities.
Groceries
We all have to eat, and planning is a great way to ensure that our money goes as far as it can. Everyone’s food budget is different, so the amount you’ll put in here depends on you; however, most people allocate about $100-$150 per week, if they can. One of the great benefits of using cash for your groceries is that some stores offer up to 10% off for using it instead of a card. Some decide to add another envelope called “household” that is meant for items such as toilet paper and cleaning supplies, but most file that under “groceries”.
Debt
This is a great envelope for when you’re trying to snowball debt. If you’re already setting money aside for debt (no matter how small), then start attacking your smallest loan. You’ll still need to pay the minimum payments on other debts to avoid the interest. Once it’s paid off, use the money you were setting aside for that bill to pay off another piece of debt. As things get paid off, you’ll have more money to attack the bigger debts.
Health
If you have health insurance, this is another expense that should be included in a budget envelope. This is also another example of a bill that is a will-they-or-won’t-they when it comes to cash. However, having an envelope set aside and having the payment waiting means you won’t accidentally spend it on something else, which is easy to do when you’re leaving money on a card.
Personal
This is used for the things you need. If your shoes are worn out and need replacing, or if you need work clothes, haircuts, or anything of that nature, it’s about focusing on what you need. Many people opt for individual envelopes for hair, nails, beauty, and other related items. At the same time, an equal number find it easier to have one comprehensive envelope that covers all these items. Remember, it’s about finding what works for you.
Water
The water bill is one that you can usually pay in cash, although your company may have specific rules regarding payment methods. For instance, some areas have a building for the bill, but if you’re paying cash, they want you to stick it in the box outside. Others want you to go to the desk. Either way, this is another effective option for ensuring that all payments are made on time.
Electricity
Depending on where you live, your electricity can fluctuate rapidly. Having an envelope to put away money—or even extra when you can—will help keep that fluctuation under control. It can also serve as a visual reminder that you haven’t paid your bills yet, reducing the likelihood of making mistakes.
Fun
Everyone needs to have some fun in their life, and this is what this envelope is for. This envelope’s money will go toward going out with friends, family, or spending time alone at the bookstore, watching movies, or engaging in other activities. Some people include cash for eating out in this category as well, but if you want to create a separate envelope for that, it may make things easier for you.
Family
Even if you don’t have kids, you could still benefit from having a family envelope. This is for gifts, holidays, and moments when you’ll need to spend money. It can be such a relief to know you have four birthdays in one month, reach into an envelope, and see that you won’t have to sacrifice on bills or your food.
Kids
Suppose you do have children; this is where you’ll put your expenses for them. If you have multiple children, it may be easier to have an envelope for each child, as some costs vary from child to child. For instance, dance can be more expensive than baseball—or vice versa. If that’s the case, having all of the money together might confuse you.
Pet
If you have a furry baby that you love, they need a cozy bed. Vets, food, and toys all need to be paid for. Having an envelope makes it easy, and if you have the chance to add an extra dollar now and then, it will help you build an emergency fund for your animal, too.
Stuff The Money
With these ideas for categories, you can review your expenses and determine how you want to approach your binder. You can add or remove as many envelopes as you want and personalize them to meet your specific needs. If you’re looking for more ideas, check out social media. You’ll see items such as vacation, credit card payments, subscriptions, giving, tithes, and more.
