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ZanyDragons t1_je1s4nq wrote

I got a new desk chair and groceries with mine, lol. My back feels a lot better. Worth it.

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kzlife76 t1_je1qifx wrote

Cash stuffing=envelope system

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ccharles t1_je2nx1f wrote

So for the rest of us... envelope system=what?

Looks like "cash your paycheque, put some into an envelope for bills, some into an envelope for entertainment, etc., repeat until you're out of cash">?

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kzlife76 t1_je2ohn4 wrote

The envelope system is a method of budgeting where you have envelopes with categories written on them. You put a certain amount of cash in each envelope. So one for entertainment, one for restaurants, one for groceries, etc. When the envelope is empty, you are out of money for that category until the next paycheck or month, depending on your budgeting cycle.

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lunaticloser t1_je3wu69 wrote

Ok maybe I'm too European to understand this but why would you pay a business money to help you put your money in envelopes Couldn't you like... Buy 1000 envelopes or whatever and do it yourself?

I'm really really just confused about the business model here. Are they financial advisors? Are they a company that sells envelopes? I've never heard of anything like this hence the confusion.

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bohemianish t1_je3xrjr wrote

Two options:

Buy envelopes, write the category names on them, store cash in them. Very DIY.

Pay for budgeting software/app that offers the digital equivalent of envelopes. Still DIY to a degree because you have to set up and maintain the categories, with the added benefit of not having to deal with cash.

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lunaticloser t1_je3xvx4 wrote

Oh so this person created a digital business? That makes more sense, oke. Thanks :)

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Fax_a_Fax t1_je5l8y5 wrote

Yes thank you, none of this was obvious at all

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kfadffal t1_je40ey1 wrote

Can you not just open new accounts? Here in NZ I just have multiple different accounts that are labeled pretty much like these envelopes. On pay day a whole bunch of automatic transfers suck money into each one of those accounts. No need for custom software and it costs zero $.

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kzlife76 t1_je4uz5c wrote

I don't know if any banks in the US offer this. My bank does have a checking/savings account that has a "reserve" account that can be used to separate money. It's like having 3 accounts. But this wouldn't really be a good envelope system.

Personally, I like the zero dollar budget where you assign every dollar to a category. It's similar to the envelope system. When you run out of money in a category you stop spending on that category. Although my system has become more of an accounting system rather than a budgeting system since I just assign my monthly transactions to categories at the end of the month. It still helps me track what I'm spending money on. I'm fortunate enough to have 0 debt and a healthy income.

If you want to get started with a zero dollar budget, Dave Ramsey has a free app called Every Dollar. It's what I started on before moving to a custom spreadsheet.

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kfadffal t1_je4vk0d wrote

Banking seems really weird in the US. I have 17 accounts for my budgeting and could open more if I wanted very easily online or via an app. Don't you guys also have some bullshit with bank transfers and stuff which is why things like Venmo exist?

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kzlife76 t1_je4vsie wrote

Banking in the US feels like it's stuck in the 70s. Since banks have better online tools. That's about all we can do.

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EmeraldHawk t1_je58dro wrote

From the article:

>she turned cash stuffing into a business — Baddies and Budgets — through which she sells money courses, budgeting supplies and other accessories.

Her website literally does sell physical envelopes. She did not write a piece of software to help people budget.

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west0ne t1_je53jhk wrote

I assumed they were just posting their techniques on social media and YouTube and making money through advertising.

This isn't a new technique, my mom and grandmother used to do this but they used old jam-jars, that was when people were paid weekly in cash and most purchases were made in cash.

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Mimicry2311 t1_je4psfu wrote

Maybe people who need an envelope system are not as fussy about spending money as you and I are ;D

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RabbitOfSpades t1_je58ph8 wrote

The article says that as she started gathering an audience from her envelope-stuffing techniques, she began making personalized embroidered money binders due to not many places make them.

Could you do this with just paper envelopes? Yes. But I think some folks respond better with fabric and plastic that just paper.

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Rabidowski t1_je5tbyx wrote

Selling stuff to people who want to save money. Brilliant!

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Mythulhu t1_je2yid9 wrote

Ohhhh. I did that with jars because of Gail Vaz-Oxlade on "Til Debt Do us Part" Super handy budgeting system.

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Unstuckmyselfat29 t1_je70v14 wrote

What kind of idiot needs this system?

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kzlife76 t1_je7az93 wrote

People without impulse control. There's a psychological reason behind why it works with physical money. Since you see how much you spend and how much you have left, you are more likely to think about purchases before making them. It also takes self discipline or an accountability partner.

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Unstuckmyselfat29 t1_je9eh79 wrote

So that’s why she’s obese, maybe she should do the same with her food.

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woahdude12321 t1_je69we7 wrote

This seems like another “avocado toast” piece. But good for her

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nickrittinger t1_je1gzi9 wrote

So all I have to do is get a bunch of tiktok followers and sell them money making classes? Why hasn't anyone thought of that already?!

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Jairlyn t1_je1pod0 wrote

She didn’t invent the idea. She’s just the one who made $1 mil last year while we were making fun of people’s business plans on Reddit.

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nokinship t1_je35g04 wrote

Yeah headline is stupid. Made it seem like her stimulus check is what got her business going.

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Ainolukos t1_je557st wrote

Probably on purpose so rich assholes can have some fodder in the media to be like "see! Your measly stimulus checks did last 3 years, you lazy peasants."

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No_Woodpecker_7774 t1_je1hh5v wrote

Edit: money-'saving' classes. Nice way to physically budget so you see how big each envelope you 'stuff' with expenses and are not just looking at numbers

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devinmacd t1_je366bw wrote

She's mostly selling physical products and some PDF templates

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Matthew_C1314 t1_je268kv wrote

It's literally just Dave Ramsey, same system different packaging. The problem with money management "Gurus" like these is that they advise you to fully swear off credit and pay in full. That isn't smart if you actually want to buy a house or get a business loan in the future. You need to manage your finances and incorporate healthy credit habits. Dave Ramsey may be a millionaire, but it's because he sells you this advice and products to use with it. He would not have that kind of money from envelope budgeting alone.

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twokietookie t1_je3a4cr wrote

Bro my grandpa had an older guy teach him this system when he joined the army in the early 40s. Giving too much credit to the grifter Dave.

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Matthew_C1314 t1_je3atgl wrote

I'm not saying Dave created it. He just pushed it with a religious twist.

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aftenbladet t1_je460ga wrote

Maybe its just about not using credit cards. Most people still need to loan money for house or cars, but using credit cards as a buffer account is not very smart. But it seems to be very common in the US.

Fine as long as you pay by end of month, expensive to be poor if not.

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Matthew_C1314 t1_je4wkxj wrote

It depends. I work in finance and met a guy who took Dave Ramsey to heart, at least the biblical parts. He sold his house and car, then bought a cash car and rents a home now. Said he didn't want to be in debt to anyone, but failed to see how being a renter was much worse. I agree with you about credit cards though, they are a nice feature if you are responsible. However, most americans use it as a slush fund to cover bills they can't normally do.

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Meocross t1_je2gr8c wrote

Credit is not worth it if you have zero discipline, my families credit cards have been busted for poor credit, without debit cards international commerce would have been impossible.

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Matthew_C1314 t1_je2k34a wrote

I said heathy credit habits.

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DavidAmazing t1_je3ef9r wrote

Right, but not every system works for every person. Just like other vices, some people can’t handle credit and that’s ok. Sure it comes with other challenges but for some people those challenges are easier to manage than credit.

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grenade25 t1_je325n1 wrote

This is true. People who perpetually disassociate card spending with the cold hard cash they have in their account will never be able to build credit. More often than not they have psychological issues that need attention and treatment. This disassociation is common in people with addictions. Most common is gambling addictions but can also be materialism, hoarding, etc. These are VERY hard to overcome.

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toodle-dree t1_je1zsx8 wrote

I recently started watching people do cash stuffings on YouTube (including her! I've seen some of her videos). I don't do it personally because I don't really like carrying physical cash. I use YNAB which is basically a virtual cash envelope system. But with that said I think it's fun watching how people set up their cash binders, how they organize their money, etc. So I basically just watch them for inspiration.

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RiverLover27 t1_je2sy4n wrote

It’s my dream to be able to do something like that and find it fun. My anxiety went off just reading you describe watching people talking about money.

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wakka55 t1_je3vro4 wrote

(Stupid) Question: For something like car insurance, are they mailing cash? Or is the cash just symbolically in the envelope and gets deposited back into the bank in time for a normal check to clear? Or what? (I have been autopay everything for decades so I have no idea how this works)

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GingerMau t1_je57pvs wrote

That was my question too.

You can't just mail cash, so you have to deposit it in order to pay.

Seems like a lot of extra steps, but if that's what it takes to help you budget and save then why not?

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toodle-dree t1_je83fdz wrote

So from what I've seen people will physically save up for maybe sinking funds or their emergency fund and once they get to their goal point they will re-deposit it into the bank. I personally am too lazy to do this so that is why I wouldn't get into physical cash stuffings but I can understand why people do it. Some people need something tactile and in person to really get where their money is going and what they're doing with it.

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[deleted] t1_je3aaxc wrote

I like YNAB.

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magneticgumby t1_je4vxjy wrote

Loved YNAB and used it back when it was a one-time purchase software you could use. When it went to the new model with the website and everything, kept using the software until that went to poo and they pushed hard for the website service. It was a shame to see the original version get left in the dust.

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[deleted] t1_je4w7z2 wrote

Never used the original version, so I can’t make the same comparison, but I still like it. It’s way better than actual cash envelopes and still does the best of any program I’ve used. Do you have a different program you prefer?

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Meocross t1_je2g4vt wrote

YNAB cuts into my allowance a little too much, maybe if i got my 2k it would be easier.

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MiloTheMagicFishBag t1_je6rb5e wrote

When introduced to it, I had zero money to spend on YNAB, so I found a PDF of the book online, read it, and taught myself how to make an Excel spreadsheet. Excel can get pretty complicated, but basic functions like adding up all the numbers in a row are super easy, and you can google how to do pretty much everything if you forget. In fact you can just google "Excel budget sheet" can find a step by step guide or maybe even a template you can download that let's you plug in values. Even if you can't afford Excel, Google Sheets is almost the exact same thing for free. YNAB is more about a state of mind than the program anyway. Don't spend more than you have, and be mindful and purposeful about where the money you do spend is going.

Never spent a cent.

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Meocross t1_je6sbde wrote

Thanks a lot man, i always wondered how to activate the budget functions on an excel spreadsheet. With that tip i can now write an entire budget without straining my hands.

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MiloTheMagicFishBag t1_je6x2hp wrote

Sorry, it's hard to tell over text, but are you disappointed I didn't go into more detail about excel's functions? Because I wrote that comment to show how you can still use YNAB's methods without purchasing the program.

If anyone finds a lot of value in the product, of course they can keep using it! But the original comment seemed distressed about the price, so I wanted to let people know it IS possible to use the method without paying for YNAB, I myself did it. And I'm NOT some finance master, or even that good at excel lol

And I didn't go into any details about how I set up my spreadsheet because I learned my excel skills from google, and often have to re-google how to do stuff I don't do regularly, so I don't consider myself good enough at Excel to do any detailed teaching.

Or do you think I was being condescending by giving super obvious information? Because I never meant to offend, I was trying to uplift. I've posted before on reddit about using the YNAB method without spending money and got a few replies asking how, so I wanted to go ahead and offer up that information first thing, for anyone scrolling by, in case it was helpful. You never know who's reading and where they're at in life

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Meocross t1_je6y0gz wrote

No no no nothing like that, i know excel how-to videos exist, i just didn't know to find them. XD

Let me be even more clear.

​

>Sorry, it's hard to tell over text, but are you disappointed I didn't go into more detail about excel's functions?

No not at all, with the term "Excel budget sheet" it makes my task a whole lot easier.

​

>Or do you think I was being condescending by giving super obvious information?

No no no not at all, every bit of info helps.

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MiloTheMagicFishBag t1_je71rgs wrote

Oh, excellent! :D

I just wanted to be extra sure, you never know with this place, right?

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Meocross t1_je7229y wrote

Meh as long as you avoid politics and religion this place is pretty chill, almost boring actually.

You got to admit the flamewars back in the forum days were excellent popcorn material.

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MiloTheMagicFishBag t1_je72b7s wrote

Haha, in the old days I was unfortunately the one IN the war, not watching on the sidelines

So many hours I'll never get back :')

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hsvstar2003 t1_je5krqn wrote

I just use a spreadsheet and keep track of my purchases. I don't get why people need anything more elaborate than this

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RiverLover27 t1_je6bp41 wrote

Aside from not everyone owning a computer, being able to afford Microsoft Office and knowing how to use it, it’s also enormously stressful to even use Excel for some people, including me. My hands start to shake and my heart races if I so much as think about using Excel like this.

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toodle-dree t1_je84u8f wrote

Speaking of myself personally I am not really much of an Excel budgeting kind of person, I've tried it but I just have hard time staying motivated to use it. Admittedly I find having these aesthetically pleasing cash envelopes/binders and these elaborate set-ups a little extra but it helps people budget and get their finances together. Different things work for different people, so why not?

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rufusclark t1_je1it2a wrote

One thing I’ve never understood about this is do you just drain your checking account every month of all the money that gets automatically deposited in there? And then how do you pay your bills that are either online only or auto pay?

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Appropriate_Scar_262 t1_je1paec wrote

No, you're set money aside, not draining your accounts. And if you're getting your finances under control you'd want as little auto pay as possible to keep track of your outgoing cash

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known-to-blow-fuses t1_je26jr7 wrote

>if you're getting your finances under control you'd want as little auto pay as possible to keep track of your outgoing cash

There are many ways to keep track of expenses that don't require you manually setting up payments for the same 8 things every month.

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KittyBizkit t1_je3d7tk wrote

Auto pay is the way to go. Why would anyone argue that it is a bad thing? It is super predictable and ensures your bills are paid on time. You should only ever have to manage discretionary spending. Things like Rent isn’t optional and should be paid using auto pay.

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mouse_8b t1_je1ynvw wrote

> money that gets automatically deposited in there

Not everyone has direct deposit, and some people may opt-out in order to get control of their finances. Plus, direct deposit was probably less common when the envelope system was invented.

But yes, on the extreme end, you would withdraw all of your money every check or month to put into envelopes. Then deposit back what you need for online transactions.

Realistically, with a little bit of foresight and math, you could only withdraw what you need to.

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KittyBizkit t1_je3ddzj wrote

Opting out of direct deposit and / or removing all of your money from the bank each month is a ridiculous way to “manage” money.

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Explorers_bub t1_je1ynnj wrote

I am not even mad. That one guy in TN makes money selling the same thing. If she gets a piece of the pie before he does, kudos.

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Juuna t1_je3a0g1 wrote

I googled cash stuffing and don't see how this will make me rich. Its just a budgetting technique not an actual business practice to earn money.

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-CRC- t1_je3mva9 wrote

I was just as confused as you. Better headline would be "31-year-old sells 'cash stuffing' budgeting knowledge to make $1million dollars"

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Unstuckmyselfat29 t1_je7132t wrote

Wow, so I have never been in debt or had less than a couple hundred dollars as an adult, can I become an influencer budgeting knowledge billionaire?

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Garmgarmgarmgarm t1_je4nuz2 wrote

Someone fixing their finances by becoming an influencer is not a feel good story.

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Batgod629 t1_je1vvtf wrote

Its not a bad way to make money if you know what you are doing. Obviously you have to build up client base and give out solid advice

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Chazus t1_je3vr2l wrote

Just to be clear, this isn't a case of "You can pay off six figure debts in a year with $1200"

She created a business that was very luckily a fantastic take off. Good for her, but it doesn't really mean much for the rest of us.

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Lord_Despair t1_je2y7ty wrote

Good on her but don’t tell her clients about YNAB

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panditaskate t1_je3yvaq wrote

So this is a fancy way of budgeting and saving money? Envelopes?

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aftenbladet t1_je464xq wrote

I use cash stuffing digitally. I have a budget and several accounts I place money in as soon as my paycheck comes in. Then I transfer from these accounts to my debit card to keep myself within budget.

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kungfupanda1990 t1_je5syo6 wrote

That’s not at all where I thought this was going when I heard “cash stuffing”, “tik tok”, and saw the photo on the wall.

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CobblerBeautiful5726 t1_je7vbdb wrote

One question. Where is that 1 million going to go? Into the bank or a huge safe in her house?

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SternLecture t1_je35zh6 wrote

Judging by the poster I assumed cash stuffing was something about sex or porn.

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radical_flyer t1_je4ol6k wrote

Clearly cash isn’t the only thing she’s been stuffing.

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WoodyTN1978 t1_je8thsb wrote

Looks like all she has been stuffing is her face

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jackofallchange t1_je3rz8c wrote

Made fancy envelopes for people jumping on a TikTok trend, weird how we wouldn’t glorify a Trump hat sale-person the same way

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