My simple budget trick helped me save £500 before Christmas – my kids’ presents are covered
MUM-OF-FOUR Jade Edmondson doesn't have to worry about where to find the money for her kids' Christmas presents this year.
She's managed to tuck £500 away in just three months with a simple budgeting trick that's "transformed" the way she manages her finances.
Teaching assistant Jade, 29, from Coventry, uses the cash stuffing method to organise how she spends and saves her money.
It involves withdrawing cash from your bank account and putting it into different pots earmarked for certain things.
For example, you could have pots for holidays, emergencies, groceries and birthdays.
Some people use it as a way to get out of debt, because it helps them manage their money and budget better.
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Since Jade started cash stuffing in November last year, she has a whopping 30 wallets to hold cash in for different things.
After she pays her bills via direct debits set up through her bank account, she withdraws the £700 she has left over and puts it in different wallets stored in a mega binder.
She started saving money in a Christmas wallet in August, after the school holidays ended.
Jade had a target to save £500 for presents for her four kids - 12-year-old twins Tyler and Cameron, Harley, six, and Maximus, one.
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She's smashed her target - and hopes she'll be able to save up to £200 more to take her Christmas spending money to £700.
";It’s amazing to have that money there and not worry - and it means I can keep to a budget when buying Christmas presents," she told The Sun.
"Before I started cash stuffing, I never saved a penny in my life.
"Now I’m not stressed about occasions, or things that pop up I need to pay for - I have emergency savings too for the first time."
In total, Jade has saved roughly £2,000 over the year from cash stuffing.
She runs a YouTube channel, OXMailStudios, and posts videos on cash stuffing tips for others to follow.
While there's a risk you might lose your cash if you mislay an envelope, she said it's worth it for her.
"Having the cash in front of you in the right envelope shows me how much money I have for that bill," she said.
"I’m not using my card - I take my envelopes and spend the cash I have."
Different ways of saving money
Cash clipping isn't the only savings method you can use to stash away your cash.
You can make more money on your savings by putting it in a savings account as opposed to taking cash out and putting it in a pot.
As interest rates soar to the highest levels seen in more than a decade, it means you'll be making your money work harder in a savings account compared to just a cash-stuffing envelope.
According to MoneySavingExpert, Tandem and Atom Bank are offering the best savings rates at 2.55%, while Nationwide is offering 2.5%.
If your savings goal is to be a homeowner, you might want to open a Lifetime ISA to help you save.
The government will add 25% to your savings, up to a maximum of £1,000 a year.
If you save the maximum amount between the ages of 18 and 50 you could get as much as £32,000 for free.
Low-income households can make the most of the government's Help to Save scheme.
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It gets you a 50% bonus from the Government on the amount you save.
Putting aside the maximum amount could earn you a £1,200 bonus over four years.