Personal Finance | Can ‘stuffing your cash’ help your budget? | City Press

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Personal Finance | Can ‘stuffing your cash’ help your budget? | If you do splurge a little at the start of the month, be realistic and build that into your allocation. Remember that you will need to cut down for the remainder of the month

According to Tyrone Lowther, the head of Budget Insurance, there are some issues associated with working with cash.Many years ago, when I was trying to pay off my debts and get my finances under control, I used the “envelope method”.

Yes, I still needed the discipline not to take money out of the petrol envelope for entertainment, but having it calculated and separated made it far easier to stick to the plan. I continued this for a few months until I felt I was on top of my money and had a better understanding of my monthly cash flow needs.

1. Combine this with other budgeting techniques: Since it’s not advisable to keep large sums of cash with you, consider using this technique only for certain expenses, while applying other pro-budgeting tips to manage the others and save some money. This will also help you avoid throwing non-essentials into your trolley, especially in the impulse aisle as you wait to pay.

So, if you do splurge a little at the start of the month, be realistic and build that into your allocation. Remember that you will need to cut down for the remainder of the month. 7. Don’t draw it all at once: If you’re considering cash stuffing and decide you want to use R10 000, for example, rather withdraw it over a few days so that you are not carrying around such a large amount of money.

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