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You may have seen the latest cash stuffing trend on Tik Tok where people are putting money into envelopes as a way of budgeting. This is not a new habit but one that the cost of living crisis may have brought back through necessity or people becoming more conscious of what they’re spending. Being able to see what you have to spend per envelope or category is helpful – you can be as granular in detail as you want, starting with the necessities like housing, groceries, bills and then allocate money for the things you want to spend on. I have clients who allocate a certain amount per month to babysitters and dance classes so they can still do the things they enjoy but are mindful of the cash available. Allowing for the things you enjoy means that you don’t feel too restricted.

Cash is not always king

Of course, using cash is not always possible, particularly where I live in London quite a lot of places only accept cards, but also online where you have to pay by card. You get the added protection if you spend by credit card too.

Give your pounds a purpose

Cash in envelopes may not be entirely practical but the idea behind it is one I often encourage with clients. Using a banking app such as Monzo or Starling you can transfer money between pots or spaces and give them a label. Thinking through what you need and want to spend on can make all the difference in getting to the end of the month and knowing where you chose to spend your money vs wondering where it went.

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