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This means that she allocates every dollar of her paycheck for a specific purpose.
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When adopting cash stuffing, Taylor opted for a zero-based budget. The cash stuffing approach is based on the idea that physically handling money and categorizing it into envelopes makes you more aware of your spending habits and better able to manage your finances. It entails setting up envelopes for different categories of expenses, such as rent, groceries and entertainment, and using physical cash to stick to these spending limits. What Is Cash Stuffing?Ĭash stuffing, or the “envelope system,” is a popular budgeting method that has gained traction in recent years. This practice allowed her to evaluate her finances honestly and gave her a clear picture of where she stood. She analyzed her debt, income and expenses and researched different budgeting styles before settling on cash stuffing. So she began by taking stock of her finances. With her 30th birthday around the corner, Taylor knew she needed to take control of her finances. In January 2021, Jasmine Taylor was a struggling 29-year-old with more than $78,000 of debt looming over her - $60,000 in student loans, $9,000-$10,000 in credit card debt, and $8,000 in medical bills.
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