Save on Groceries With ‘Cash Stuffing’ — Expert Explains 5 Ways To Do It
Written by
Dawn Allcot
Edited by
Cory Dudak
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Although inflation may continue to slow in 2024, people are still struggling with daily expenses, from utility bills to groceries. Yet a finance trend popularized on TikTok is helping many people meet expenses and pay down debt.
Finance expert Dave Ramsey previously popularized the “cash envelope budget system,” advising people to abandon credit cards and even debit cards in favor of using cash. This helps you to spend more mindfully. Experts have recently started calling this method “cash stuffing,” because you literally stuff cash in envelopes to spend throughout the month. Ramsey recommended putting cash for various expenses in separate envelopes. When the cash is gone for that month or that pay period, you can’t spend in that category anymore.
This system can help reduce expenses in variable categories — areas where you have wiggle room to spend more or less money. For instance, your mortgage or rent is a fixed expense, where you can’t pay less one month.
However, your grocery bills can vary depending on the foods you choose, how often you dine out, and how well you use coupons or take advantage of sales. “Cash stuffing” expert Jasmine Taylor, who is positioned to pay off $70,000 in debt in three years, shared some of her secrets for saving on groceries with the team at CNBC Make It.
1. Use Coupons and Money-Saving Apps
Apps like Rakuten and Fetch offer cash back when you scan receipts or shop online through the Rakuten app or browser plug-in. It’s also smart to look for digital coupons online or through your favorite store’s app. Target’s Circle app, for instance, offered a $30 coupon for savvy shoppers in December.
“Download those apps on your phone. Those little $1 and $2 savings that you get back really add up,” Taylor said.
2. Don’t Try To Slash Your Grocery Bill Too Much at One Time
Once you’ve discovered the magic of cash stuffing, you might be tempted to see how little you can spend on groceries in a month. That said, you don’t want to try to reduce your grocery bill by 50% and then end up having to borrow money from another spending category later in the month. Instead, set your goal to slash 10% off your grocery bill this month and put the extra toward a savings account or high-interest debt.
“There’s no way you’re halving it unless you’re doing some serious couponing and only shopping sales,” Taylor told CNBC.com.
3. Meal Plan
Meal planning can help you save time and money, while eliminating that nightly frustration of wondering what’s for dinner.
“Sit down, plan your meals and check your pantry for what you already have. Then make a plan for the grocery store,” Taylor advised. This way, you can create your dinners based on what’s on sale, stock up on staples and even cook a few meals in batches — such as soups or lasagnas — that you can freeze for the future.
4. Know Your Total Before You Pay
Shop with your calculator app open on your phone and add up your groceries as you go. That way, you know exactly how much you’ll spend. If you don’t factor in coupons or cash back apps, you will know you have enough money and even come out ahead. The money you save can go toward next month’s groceries or, better yet, into a high-yield savings account.
5. Shop Online
If you are the type who can’t resist the allure of the bakery section, snack foods or even the famous “Aisle of Shame” at Aldi, consider purchasing your groceries online instead.
The online interface makes it a bit harder to browse, and you are more likely to stick to your list. To save on shipping, Taylor advised, pick up your order curbside.
Final Note
Saving 10% or more on your groceries alone won’t make you wealthy. Yet if you can use that money to pay off debt or to invest in dividend-paying stocks, it’s another step toward financial freedom.
