A Texas woman who had nearly $80,000 in debt went viral after she paid it all off using a savings method called cash stuffing.
Jasmine Taylor, 31, lives in Amarillo, Texas. In January 2021, she owed about $60,000 in her student loans, $9,000 in credit on her card debt, and about $10,000 in medical debt, she told her USA TODAY. .
Taylor has a degree in Applied Science and was on her way to qualify as a teacher. To make her money, she did everything she could think of: food and prescription deliveries, coupons, online surveys, transcriptions, and more.
She was watching YouTube and learned about cash stuffing, a budgeting system in which individuals receive cash for various spending categories and put the money in envelopes.
“I turned 30 that year and was sick of my financial woes,” Taylor said. “I had a degree, but no job, lots of debt, and no budget to work.”
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How cramming cash helped reduce her debt
Traditional savings methods didn’t work for Taylor. She was putting money into a savings account one day and into her checking account the next day.
In February 2021, she decided to try cramming cash. To ensure her budget plan was met, she began sharing her own experiences on her social media.
“Working specifically with cash and seeing the money pile up in envelopes really clicked a switch in my head,” Taylor said. “Now I can give you a $100 bill and he can give you a $100 debit card. They just have some kind of connection.”
As she shared her experience, people were drawn to the envelopes, binders, and other preservation tools she used. Many of these were created by Taylor himself.
Taylor didn’t have a steady income yet, so he took advantage of the spring 2021 economic stimulus package to start his business. crooks and budget.
She now runs the company full-time, selling glittery binders containing envelopes of cash and purses for everyday expenses. Taylor also earns income from her collaborations on YouTube and other social media.
Her business venture allowed her to pay off her debts, she said.
“From April to December 2021, we paid off $30,000 of debt, and paid off all the rest in 2022,” she said.
While working on her finances, she decided to try the debt snowball method. She started with a small amount of debt before she moved on to a large amount of debt, calling her financial feats “unrealistic”.
“When you’re in such dire financial straits, you feel hopeless,” Taylor said.
How does cash stuffing work?
According to Taylor, there are two types of envelopes involved in packing cash.
- Envelopes to carry around for variable expenses (gas, groceries, dining out)
- Savings Envelope (auto insurance/maintenance, travel, vacation)
“Instead of waiting until a tire is nailed and then having to pay $300 for a tire, set aside $10 or $12 per paycheck,” says Taylor. “If something happens to the car, you can go to the envelope and pick up the money and pay it.”
Don’t forget your Christmas shopping. If a saver started her thinking fund in January and she could deposit $21 each week, she could get about $1,100 by Christmas, she said. rice field.
In general, Taylor says the rule of thumb is to create a depreciation fund for large or burdensome expenses.
want to save? Find out where your money is wasted.
Taylor said tracking spending is a great way to save money in the long run.
Individuals can track their spending when:
- Print bank statements for the last two months
- Get a set of highlighters and assign colors to different spending categories
- Highlight spending in each category
- Sum up spending by category
Spending tracking can also be done over 30 days using a spiral notebook, she said.
Most people are shocked to see where their money goes, but often the problem isn’t that they don’t have enough money, it’s that they’re just wasting it.
“Poverty cannot be saved. I can understand that, but usually most of us have to spend money on Amazon, buy clothes on SHEIN, and buy everything trending on TikTok. ‘ she said.
Taylor said she felt nauseous when she found herself spending a lot of money on Amazon. Even a small purchase of $12 could make her well over $500 if she continued, she says.
Since launching her personal finance company, Baddies & Budgets, Taylor has been able to help others who are suffering like herself, including survivors of domestic violence.
She explains budget plans to them and helps them save money for housing.
If you’re deep financially, there’s help out there, she said.
“No matter what the situation is, there is hope beyond your current situation.”
Saleen Martin is a reporter for USA TODAY’s NOW team.She is from Norfolk, Virginia – 757 – I love all things horror, witches, Christmas and food. Follow her on her Twitter. @saleen_martin or email her sdmartin@usatoday.com.
