“It’s convenient and I don’t have to think about it,” she says. Her hope is that this saving hack will help her towards her financial goals of homeownership and potentially starting a homeless shelter. So far she’s stuffed three envelopes, saving nearly $300 so far this year. “But I understand that being able to purchase things from small businesses might be a luxury, so in any case you have to do what you can with what you have.” Motivation to saveĪshley Johnson, a systems data analyst based in Ohio, made her own set of bedazzled envelopes and has decided every Wednesday she’ll grab an envelope and insert the dollar amount that corresponds with its label–starting with envelope 100 and working her way down to envelope one. “When things are aesthetic and pretty, dealing with budgeting your finances is a little easier to do,” she says. But, they also cost $49.90, plus shipping and handling. They’re now available for purchase on her website and have become so popular she’s having a hard time keeping up with orders. To get more motivated to complete the challenge, Taylor decided to D-I-Y her own set of PVC plastic, clear envelopes that gave her a clear view of every dollar bill she was setting aside. Read More: 7 Ways to Manage Financial Stress Taylor recommends using a fireproof safe to store your cash. It’s for people looking to take hold of their finances and their relationship with money.”Įmulating the internet’s “aesthetic” version of the challenge can also potentially cost you more than just a pack of manila envelopes. “The cash envelope method isn’t necessarily for wealth management or those who already have their finances together. Hemphill recommends making the challenge your own and depositing cash into a high yield savings account as you go along, she says.īaddies & Budgets influencer Taylor says the accountability “hack” of saving every day can particularly help those who have struggled to save in the past. “Saving challenges like this give people accountability and this one is fun, visual and provides a sense of gamification,” she says. Jen Hemphill, accredited financial counselor and host of Her Dinero Matters Podcast, understands the drawbacks, but believes the psychological component of the challenge could outweigh the concerns about inflation and losing out on interest for some people. The sooner people get their money into savings accounts and out of hard cash, the more it will grow, he says. Some savings accounts can earn up to 4% interest per year, and will help the cash grow over time. Instead, Di Cesare advises that once you’ve built an emergency savings fund and paid off your high interest or personal loan debt, you should prioritize saving in a high-yield savings account or investing it. It’s potentially losing its value at a rate of 6.5% per year.” “It’s a creative way to save money, but having cash stored away is like burying it in your yard or under your mattress. “Get the first couple of dollars in there and before you know it, you’re 100 envelopes down.” The cost of savingīut this method of saving money is likely not what will give your savings the most value, according to Patrick Di Cesare, a certified financial education instructor. Her biggest advice: get started as soon as you can. “The challenge can seem daunting at first, but once you get going you start seeing the money adding up and you see it’s a fun, less monotonous and effective way to get your money saved,” Taylor tells TIME.
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