Cash stuffing can work very well for purchases such as groceries or buying clothes at a department store, where you almost certainly will encounter a cashier who will readily accept your money. It makes paying bills easier and less likely that you’ll miss a payment. Yes, we listed this as a positive – but it is also a negative. If somebody makes off with your cash from your home, the police may or may not be able to track your money down, though your homeowners insurance may cover some of the loss. If some cybercriminal manages to steal your money from a bank account, you are insured and will get your money back. ![]() (A typical homeowners' insurance policy only covers a couple hundred dollars of cash that burns up in a fire.) Your home could be robbed. If you had a fire, all that money – hidden in bottles, cash stuffing binders, shoes, envelopes, crevices in your home – would go up in smoke. If you’re better organized with your money and know that you’re not likely to overspend with your cash stuffing system, you should feel less anxious. Maybe you'll question whether an insurance bill is too high or whether your grocery bill is too low, and you'll start comparison shopping or readjust your spending. If you’re spending every month dividing your cash into compartments, like putting it in envelopes or creating a cash stuffing binder, you’re going to think more critically about where your money is going. When you automate all or most of your monthly bills, you aren’t really thinking about where your money is going. ![]() It could be argued that banks have made budgeting too easy. If you have money in an envelope or binder marked “groceries,” you probably will use the money for food and not something else. Taking cash out of a bank account and putting it in envelopes or a binder may be an effective way to make sure that your money goes where it’s intended – and not to something else.
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