Jasmine Taylor has perfected the art of cash jamming.
TikToker’s Taylor, who shares her budgeting journey with her followers on social media platforms, used cash jams because she “wasn’t quite sure where her money was going when she swiped her credit card.” He says that it has become “to have to specifically handle cash”. Method.
“It was life-changing for me,” Taylor told Good Morning America.
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Be accountable for previous financial mistakes
Taylor said she embarked on a cash-packed journey in January 2021 when she had just over $60,000 in student loan debt, about $9,000 to $10,000 in credit card debt, and $8,000 in medical debt. .
Taylor, who was 30 at the time, said she struggled “not being able to manage my money” and “just had to take responsibility for previous financial mistakes”.
She started by looking at what she had, then looked at her debts and income, then her style of budgeting. calmed down. This allowed her to make an honest assessment of where her finances and debts were.
“If you’re in debt and you’re in financial trouble, sometimes you hide it,” Taylor said. [it] It was to help me plan for the future. ”
When assessing how her money was being spent, Taylor said she was “shocked” at how impulsively she was spending it.
“At the end of the month, it all adds up to $400 or $500. I wonder why I’m having trouble paying certain bills, or struggling to meet my next check.” she said. “And then there’s this unexplained money that I was wasting frivolously and impulsively.”
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What is the cash stuffing method?
Taylor defines the concept of cramming cash as “if you have a normal budget, take it and run on it with cash.”
She said she starts with a budget, divides it into categories using envelopes, withdraws cash from the bank, and stuffs the allotted amount into each envelope or category. It can be applied to anything: bills, utility bills, etc.
Rachel Cruz, author of Personal Finance, also explained to ‘GMA’ that how you cash-pack starts with a budget.
“Hey, here’s my income for the month, minus all my expenses, including giving and saving,” she said. It gives you a certain amount of freedom when you dictate what you do — your budget.”
“One of the great things about budgeting and stuffing cash is that you can make choices before you go shopping,” Cruze added. “It just brings this level of intentionality.”
The cash-packing method was popular among TikTokers like Taylor during the holidays.
“Most people have a Christmas thinking fund,” explains Taylor. “You start a Christmas Thinking Fund in January. Add $20 to $21 a week and you will have about $1,100 by Christmas time. You can go shopping without giving
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crooks and budget
Today, Taylor continues to use her cash-stuffing method for budgeting, sharing it on social media pages like TikTok and YouTube, known as “Baddies and Budgets.”
She said she started sharing her journey on social media to hold herself accountable.
Taylor has also turned budget advice into a business by selling her own cash-stuffed envelopes and related merchandise online. She said she used the stimulus check to invest in her startup business on her 30th birthday in April 2021.
“I started making my own items on my own budget, but more people wanted to know where they could get these items,” she said. I bought it, bought some inventory, hosted a Shopify site, and just started.”
Through her experience, she said the biggest lesson she’s learned is not to rush the process.
“When I was paying off my student loan debt, I felt like I needed to pay it off now. I said, “So if it takes a little longer to pay off, that’s fine.”
“It’s about building financial strength, paying your debts consistently, paying on time, and learning consistency to pay extra,” she added.
Taylor said she paid off her credit card debt in the summer of 2021 using the cash stuffing method. She also said she would pay off her $26,000 student loan debt in 2022.