I'm a savings queen – easy trick I use to get through cost of living crisis and how you can too | The Sun

A SAVINGS queen has revealed the very easy trick she uses to stick to a budget in the cost of living crisis.

Posting on TikTok as @budgetwithdee, she reveals how cash stuffing helps her keep on top of her finances.

Cash stuffing is a budgeting technique where you withdraw your money and split it between different spending pots – you might have one for bills, one for groceries, and one for fun things.

Popular with money influencers, it's earned its name as you are literally "stuffing" your cash into envelopes or pots earmarked for certain expenses.

While you could also split your money up into virtual pots using a banking app – some experts argue that having the physical cash can make it easier to budget and monitor your spending.

On TikTok, Dee showed her followers how she took cash out of an envelope in her cash stuffing binder labelled as "weekly shop".

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On the section of the binder, Dee has written £120/£30 – indicating the monthly and weekly amount she has allocated to this type of spending.

She takes £15 out of the binder to go and buy cleaning products, and when they come in cheaper than expected, the leftover cash goes straight back into the envelope.

"And there's another day in the life of cashing stuff for you," she adds at the end of the video.

In another video, Dee explains that cash stuffing is great for many people:

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"Do you have little to money left at the end of the month, always waiting for pay day, also stuck in your overdraft, perhaps got one loan out, have a non-existent savings account?

"If you fall into any or all of those categories – you need to try…"

Dee then holds up her budgeting binders under the text "cash stuffing".

If you want to try cash stuffing, the first thing you need to do is work out a monthly budget and the different areas that you need to allocate your money to – such as rent or groceries.

You then split your money either into envelopes, binder sections, or using a banking app if you prefer (some banking apps, like Monzo, let you set up different savings pots).

One downside of having your money in cash is that it can't interest – there is also the risk that it could get lost or stolen.

And don't withdraw money for bills that need to paid out of your bank account by direct debit.

What other savings challenges are there?

Saving and budgeting challenges can help you get on top of your finances by making your goals seem more achievable.

The 1p savings challenge can help you stash away £670 in a year.

It works by putting aside 1p on day one, then 2p on day two, 3p on day three, and so on until the end of the year.

On day 365, you put £3.65 into your savings pot.

The great thing about this challenge is it doesn't require you to part with large sums of money.

The 52-week challenge is similar, but ups the stakes slightly.

With this method, you save weekly rather than daily, but the amounts are larger.

So on week one, you save £1, and £2 on week two, right through to £52 in the final week of the year.

Depending on when you start this challenge, it could be difficult though – if you start at the beginning of the year, then you'll need to save your largest weekly amounts around Christmas, which is already an expensive time.

Stick with it, and you'll have £1,378 after 52 weeks though.

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Alternatively, you could try and make some extra money in your spare time.

We've looked at all the ways to make cash from home including doing odd jobs, taking part in surveys or selling unwanted items on eBay.

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