A TIKTOK money expert has revealed how she saved $5,000 in a year with the help of 100 envelopes.
As a mom, she’ll typically post advice on how to properly budget for groceries, where to find high quality and low priced ingredients to make baby food and other valuable mom hacks.
She recently posted a video explaining to her 46,700 followers how she saved over $5,000 using the popular TikTok challenge.
It’s called the envelope challenge and it has been going around the platform for quite a while now.
Participants start off by getting 100 envelopes and numbering them one to 100.
Then each week, you randomly pick one of the envelopes, and whatever number is on the front of the envelope, you put that amount of money into it.
At the end of the 100 weeks, or almost two years, you should have saved $5,050.
But Jessica’s goal was to get two envelopes every week, cutting the time in half to save the cash.
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Ultimately, she ended up saving $5,000.
Other ways to save
If you’re looking for other ways to save, experts recommend the budgeting rule 50/30/20.
The 50/30/20 rule differs for everyone, but in order to save, divide your money into these three categories:
- 50% of income goes towards essentials
- 30% of income goes towards financial goals/savings
- 20% of income goes towards non-essentials
This is a sure way to budget for what’s important to you and your family.
Another helpful rule is the 24-hour rule.
This may test your patience, but you will most likely thank yourself.
Waiting a day gives you time to process and weigh the pros and cons of a purchase, allowing you to feel good about your choice.
Plus, it also gives you time to shop for a better deal.
Another money expert and TikToker Michela, who goes by breakyourbudget, explains how automating your finances can be a sure way to save.
“I recommend having a bank account where your paycheck or various income sources are deposited into and setting aside money for taxes and insurance,” she said.
Once you do that, you can automate all of your different goals like:
- Other investments
- Debt payments
- Student loans
- Credit card
This ex Bath & Body Works employee explains the store’s return policy that could save you tons on products you don’t want.
Plus, shoppers can save up to 25% on groceries by switching brands.
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