Woman saves £5,000 in three months by using TikTok 'envelope hack'

Money and white envelope in woman's hands
Want to save cash? Try filling up some envelopes or "cash stuffing" -Credit:Getty Images/iStockphoto

Many of us are feeling the pinch at the moment.

During the cost of living crisis, it's especially tricky to get by. So if you're trying to set aside some extra cash for a rainy day – or if any curveballs strike – we've got just the trick for you.

A woman managed to save a whopping £5,000 in just three months by using a viral 'envelope hack'. The "cash stuffing" technique was shared on TikTok by @budgeting.with.milly – and has quickly caught on.

To follow the strategy, you must stuff envelopes with notes and hide it away. This makes spending the saved funds more difficult, helping many to achieve their financial goals.

By filling up a £4.99 savings folder from Amazon, Milly amassed an impressive £5,000. She couldn't contain her excitement as she posted online: "Finally saved all this money with the 100-envelope-saving challenge."

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The video, which garnered more than 73,000 likes, showed Millie depositing varying sums into each envelope every day – starting from $1 up to $100 in the 100th slot.

She revealed: "I saved $6,000 (around £4,800) in three months and the book literally won't even close. How crazy is this y'all? And all I did was complete these simple little booklet challenges with my spare change."

For those who find daily contributions challenging, adopting a monthly savings plan could be a more viable option. Alternatively, you can adjust how much cash you add to the envelopes each day to make things easier.

People have been loving the easy hack. One astonished user commented: "That's a great way to save for vacations." And another gushed: "She just gave me motivation."

Others were more sceptical about the viral clip though. A critic asked: "That is your spare change?! No way! Because unless you don't have bills there is no way!"

And another chimed in: "Yeah this works if you have spare money to put in it lol."