How to budget and manage your vacation with cash stuffing

Going on vacation soon and want to keep your spending under control? Cash stuffing, a method where you physically divide your money into different categories, can be a real game-changer. No more unexpected expenses, no stress about your bank account – just enjoy your well-deserved rest. In this blog post, you'll learn how to use cash stuffing to budget your vacation smartly.

What is cash stuffing and why does it work for vacations?

Let's start at the beginning: what exactly is cash stuffing? The idea is simple. You literally divide your cash into different envelopes or folders. Each envelope represents a specific expense, such as food, activities, or souvenirs. The biggest advantage? You always have an instant overview of how much you've already spent and how much you have left.

But why does this work so well during your vacation? First of all, cash stuffing helps you manage your money more consciously. When you pay with a debit card, you're often less concerned with how much you're actually spending. Cash stuffing prevents you from going over budget, because—simply put—once the money's gone, it's gone.

Another major advantage is that it helps you cover unexpected costs. For example, if you have a separate envelope for "unforeseen expenses," you won't have to worry if something goes wrong, like an extra taxi ride or a higher-than-expected entrance fee.

Tip: Use a holiday savings challenge bundle to save for all categories

Preparation: Calculating your holiday budget

Before you start stuffing your cash, it's important to determine your total vacation budget. This doesn't have to be complicated. Ask yourself the following questions:

1. What's the maximum I'm willing to spend? Think of an amount that's realistic for your situation.

2. What categories do I need? Make a list of expenses. Consider:

• • Accommodation
  • Food and drink
  • Activities and excursions
  • Souvenirs
  • On-site transportation
  • Unforeseen expenses

1. How much should I set aside for each category? This is a crucial step. If you know your average daily spending, you can easily allocate a realistic amount to each category.

For example:

• Accommodation: €500 for 5 nights (pre-paid or pay on site).
• Food and drinks: €200 for 5 days (€40 per day).
• Activities: €150 for excursions or attractions.
• Souvenirs: €50.
• Unforeseen costs: €100 (always useful!).

Tip: Use a budget planner to budget your vacation.

How to use cash stuffing during your vacation?

Now comes the fun part: dividing your money among the envelopes. Create a separate envelope for each category, or use a budget folder with compartments. Clearly label each envelope with the purpose.

Daily planning

You can keep your cash storage flexible by taking a small amount each day from the envelopes you need. For example, if you know you've booked an excursion and are going out for lunch, only take money from "activities" and "food and drinks." This prevents you from carrying everything.

Safety

If you're worried about cash security, there are smart solutions. Spread your money across multiple locations, like a safe in your hotel, a hidden compartment in your backpack, or a money belt. Only take what you need for that day.

Keeping an overview

Review your expenses every evening and see how much is left in each envelope. This will help you make adjustments if you've spent more than planned in one area.

Tip: Use an A7 binder or a cash-stuffing wallet for your daily expenses on holiday.

Benefits and potential challenges

Benefits of cash stuffing:

• More control: You know exactly how much you spend per category.
• Conscious enjoyment: By physically dealing with money, you think more carefully about what you buy.
• Less stress: No worries about a budget getting out of hand

Potential challenges:

• Countries where cash is less common: In some countries, like Sweden, almost everything is paid digitally. Here, you can still "stuff" your money with an app or spreadsheet that simulates your spending.
• Unforeseen circumstances: Sometimes you unexpectedly have to spend more than planned. Therefore, always allow a small buffer in your budget.

Tips for specific types of holidays

Cash stuffing can work for all kinds of vacations. Here are some tips:

Backpackers

As a backpacker, you often work with a tight budget. Use small envelopes and distribute your money across different areas of your luggage. Plan your days ahead so you know what expenses you'll be spending.

Luxury holidays

Even if you have more to spend, cash stuffing can help you prioritize. Create a larger budget for wellness, such as spa trips or luxury dinners.

Road trips

For road trips, you can create categories like fuel, snacks, and accommodations. Tip: Set aside extra money for tolls or parking fees.

Conclusion

Cash stuffing takes the stress out of your vacation spending. By creating a budget in advance and dividing your money, you stay in control and can enjoy your vacation carefree. Whether you choose a backpacking adventure, a luxury vacation, or a road trip, cash stuffing is suitable for any type of vacation.

Try cash stuffing on your next vacation and experience the joy of financial peace of mind. Your wallet and your vacation spirit will thank you!