Latest news with #financialdiscipline
Yahoo
5 days ago
- Business
- Yahoo
5 common mistakes people make when 'cash stuffing'
From skincare routines to refrigerator restocks, there's always a new trend on TikTok that's quick to grab our attention. Lately, it's been 'cash stuffing,' with videos showcasing budgeters neatly organizing their income into labeled envelopes and budget binders as they go over their spending categories and available balances. While cash stuffing can be a powerful tool for building financial discipline, it's not foolproof. Here's how cash stuffing works and how to avoid the pitfalls that trip up many beginners. What is cash stuffing, and how does it work? Cash stuffing is a popular budgeting method that involves withdrawing paychecks from your bank account and dividing that cash into envelopes for each of your spending categories. It's also known as the envelope budgeting method. Why? When paying with a card or digital method, it can be difficult to visualize your spending and keep track of where your money is going. With physical cash, you can physically see how much you have available to spend. Plus, you feel the 'pain of paying' that comes with handing over your hard-earned cash. 'I've recommended the envelope method for years to people who tend to overspend in certain areas,' said R.J. Weiss, a certified financial planner and CEO of The Ways to Wealth. Weiss explained that if you want to implement cash stuffing, it doesn't have to apply to your entire budget. 'Just pick a few categories where you usually go overboard,' he said. 'That way, there's a hard stop, a very black and white line each month of whether you spend over or under your budget. You either have the cash or you don't.' Read more: Guide to zero-based budgeting 5 common cash-stuffing mistakes — and what to do instead Cash stuffing is simple in theory, but it's easy to make mistakes if you've never managed your money this way. Here's a look at some common slipups that you'll want to avoid. 1. Not keeping your cash in a safe place Walking around with a large amount of cash can put you at risk of loss or theft. If you're going to start cash stuffing, it's important that you only carry around the cash you plan to use for that day's purchases and store the rest of your envelopes in a safe place (such as an FDIC-insured checking or savings account). Read more: How to save cash: 7 ways to protect and grow your liquid savings 2. Not accounting for digital expenses In a digital world, going cash-only can be tricky. So many bills and recurring payments — from cell phone providers, utility companies, and subscription services — are now typically done cashless. So, it's important to consider which spending categories you can realistically pay for in cash and see if your bank offers budgeting tools that will allow you to create virtual envelopes or savings buckets for your digital-only payments. Read more: How much cash should I have on hand? 3. Dipping into other spending categories If you have to dip into other envelopes to cover your expenses, it's a sign you should re-evaluate the amount you're setting aside for each spending category. Borrowing money from other categories can make it difficult to track how much you're actually spending. Take some time to review each spending category and rework the dollar amounts so that they are more aligned with what you realistically spend each month. Read more: Your guide to the must-have categories every budget should include 4. Ignoring your savings account While assigning every dollar to an envelope is the foundation of the cash-stuffing method, it does prevent your extra funds from earning interest and growing over time. This is why cash stuffing, while effective, should be a short-term budgeting method to help you get your finances on track — not a long-term wealth-building strategy. For example, say you keep $1,000 in an envelope for savings. If you were to put that money in a high-yield savings account at 4% APY, you'd have an extra $40 at the end of the year even without any additional contributions. That might not seem like much, but it's $40 you wouldn't have otherwise. And if you continue to contribute to your savings account regularly and grow the balance over time, your earnings will snowball thanks to compound interest. This isn't to say that the envelope method doesn't help you grow your savings. Watching your savings envelope grow bigger can certainly help motivate you to keep going. However, using this method long-term does mean missing out on extra earnings and long-term growth potential. Read more: The 10 best high-yield savings accounts available today 5. Doing too much too soon Envelope budgeting can be effective, but it isn't necessarily easy. It requires you to commit to an exact spending amount for each category and not a penny over. Some budgeters could find this journey to financial freedom limiting. 'The mistake I see most often is people trying to go all in right away,' Weiss said. 'Just start with three to five areas where you overspend, or even just one. The concept works, but if it's too much to maintain, you're not going to stick with it.' Up Next Up Next
Forbes
21-07-2025
- Business
- Forbes
To Retain Top Talent, Treat Benefits As Culture—And Vice Versa
Andy Watts is the Chief Financial Officer for Brown & Brown, Inc.—ensuring financial discipline, value creation and operational excellence. Salary might get talent in the door, but it rarely keeps them. Increasingly, employees are evaluating companies based on the relevance and impact of their benefits. And rightly so, as they directly affect our quality of life, financial stability and sense of being valued at work. That's why at my company, we see benefits strategy as a business imperative. As a CFO, it's not just about managing costs or checking compliance boxes. It's about building a workplace that attracts, supports and retains great people. Like any strategic investment, benefits require more than annual budgeting. They demand ongoing evaluation, smart allocation and a feedback loop that connects employee needs with financial discipline. So what does that look like in practice? Here's a framework that blends financial oversight with cultural alignment—and ensures benefits work as hard for the business as they do for our people. Prioritize impact over volume. Start by asking your teammates what matters to them. Each year, we run an employee survey to gather honest feedback. One of the first things we heard was the need for better mental health support, so we acted on that. After that came more requests for IVF, adoption and surrogacy benefits, all within a couple of years. We also gather input through employee resource groups (ERGs), which can be a powerful feedback loop. When culture fosters open dialogue, you gain the insights necessary to make high-impact decisions. And when you invest in benefits people truly value and use, you can focus resources where they'll deliver the greatest return on investment (ROI) for your team and your bottom line. Benchmark for relevance, not just cost. Benchmarking will help you understand which benefits matter, not just how much others spend. Understanding how our benefits compare in terms of relevance, creativity and optionality means looking at larger companies, but also smaller and more entrepreneurial ones that are trying out bold new ideas. Less of a formula and more of an art, the gold is in finding the right mix of benefits that align with your company values, support your teammates and drive business value simultaneously. Data can guide you, but ultimately, it comes down to judgment and a clear understanding of where your investment yields the most strategic ROI. Use plan design to influence behavior. You'll want your benefits to support the right behaviors, like getting preventative care or staying in-network. Design can drive that. But I've been surprised by how often great benefits go unused. Nearly 30% of total compensation in the U.S. goes toward employee benefits, yet much of that investment goes underutilized and underappreciated. For example, many skip their annual checkups even when they're covered. As leaders, it's incumbent on us to do more than simply offer benefits—we have to equip people to use them wisely. When we do, better health outcomes and reduced downstream costs, like avoidable emergency room visits or chronic condition escalations, are the result. Adapt in real time—not just at renewal. You won't always get it right. We rolled out plans we thought were well-designed, only to discover that we missed the mark on certain components. Once, we tried a single-plan model to simplify selection. Ultimately, that lasted one year. People did, in fact, want more choice, even if the feedback initially did not indicate that. While it may be impossible to reroute midyear, that feedback can fuel a better strategy next year. Beyond a once-a-year conversation, we continually examine our benefits strategy. Claims data, cost trends, teammate feedback—it all feeds into how we optimize in real time, not just at annual renewal. This agility helps us identify inefficiencies early, reallocate spending where it's working and avoid surprises at year-end. Communicate like it's a benefit. You can have the best-designed plan in the world, but it's not a true benefit if no one understands it. We've started building persona-based communications—videos and messages tailored to meet the generations in our workforce where they are. Tying messages to life events makes it easy for people to engage and connect with the offering in a way that feels personal. With clarity, not complexity, as our goal, we try to avoid unutilized benefits from becoming a missed opportunity and a sunk cost. Build benefits like you build culture. Your benefits reflect how much you care about your people. They're your culture in action. And culture fuels retention. Finance leaders can and should bring discipline to benefits strategy, but we also need to bring curiosity, creativity and a people-first mindset. When we treat benefits like an investment and manage them accordingly, building something far more valuable than a spreadsheet is possible: a workplace that people want to be part of. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Times of Oman
15-07-2025
- Business
- Times of Oman
Young Omanis lead nation in savings, reveals survey
MUSCAT: Young Omanis are leading the country in personal financial discipline, with 75 percent of individuals aged between 18 and 29 saying they save part of their income regularly, according to a survey by the National Centre for Statistics and Information (NCSI) in collaboration with the Financial Services Authority. The 2024 survey explored attitudes toward saving and investment among citizens and found that young adults were significantly more likely to save than older age groups. The savings rate drops to 58 percent among those aged between 30 and 40, and falls further to 42 percent for individuals aged over 50. Overall, the survey found that 59 percent of Omanis save some portion of their monthly income. Of these savers, 81 percent keep their money in bank accounts — both Islamic and conventional — making it the most preferred method of saving. While the youth demographic showed the strongest saving behaviour, women outperformed men, with 74 percent of Omani women saving regularly compared to 56 percent of men. Higher education levels were associated with stronger saving habits, with 73 percent of those holding qualifications above the general diploma level saving, versus 49 percent among diploma holders and just 33 percent among those with less than a diploma. Income and employment also play a clear role. Among employed Omanis, 64 percent save, while only 49 percent of job seekers and 39 percent of those outside the labour force do the same. Those earning above OMR600 per month recorded a 69 percent savings rate, compared to just 33 percent for those earning below OMR300. The top reason cited for saving was to prepare for emergencies and future needs, followed by housing and investment goals. The findings reflect a growing culture of financial awareness among young Omanis and are expected to guide national policies focused on improving saving behaviour across the Sultanate.
Yahoo
07-07-2025
- Business
- Yahoo
Canadian government seeks billions of dollars of savings over next three years
By Promit Mukherjee (Reuters) -Canada's finance minister has asked all ministries to find savings, assess spending on programs, cut down on work duplication and look to reallocate funds from other programs to priority projects, a government official said on Monday. Citing two letters sent by Finance Minister Francois-Philippe Champagne, along with the President of the Treasury Board Shafqat Ali, the official said the letters are primarily seeking ministries to become financially disciplined. Prime Minister Mark Carney has promised billions of dollars of new spending from defense to housing to massive nation-building projects. But he had also set a new fiscal goal of balancing the operating budget by 2028-29. While the details of how that will be achieved are still not clear, economists have said that in the absence of any major savings or a big bump in growth, the government's increasing spending pressures will keep deficits perennially high. The official said Carney's plan had been to spend less and invest more. With investment boosted through various bills and measures, the focus is now on spending less, the official said. The official was not authorized to speak on record. The finance ministry did not immediately respond to a request for comment. The Globe and Mail was the first to report the news. The finance ministry has asked all ministries to find savings not just for one year but in the long term, the official added. All the ministries have been asked to find 7.5% from program spending for the 2026-27 fiscal year, followed by 10% in the next year and 15% in the year after. The government has asked the ministries to review their current budget, assess their ongoing programs, check whether a spending measure is meeting the objective of the program, see if some programs are being duplicated at the provincial or the municipal level and report back to the ministry. The ministries have also been asked to identify three priorities inside their ministries and reallocate funds from another program for those, the official added. The Finance Ministry is preparing for its budget document for the current fiscal year, which is likely to be presented in Parliament in early October. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
Canadian government seeks billions of dollars of savings over next three years
By Promit Mukherjee (Reuters) -Canada's finance minister has asked all ministries to find savings, assess spending on programs, cut down on work duplication and look to reallocate funds from other programs to priority projects, a government official said on Monday. Citing two letters sent by Finance Minister Francois-Philippe Champagne, along with the President of the Treasury Board Shafqat Ali, the official said the letters are primarily seeking ministries to become financially disciplined. Prime Minister Mark Carney has promised billions of dollars of new spending from defense to housing to massive nation-building projects. But he had also set a new fiscal goal of balancing the operating budget by 2028-29. While the details of how that will be achieved are still not clear, economists have said that in the absence of any major savings or a big bump in growth, the government's increasing spending pressures will keep deficits perennially high. The official said Carney's plan had been to spend less and invest more. With investment boosted through various bills and measures, the focus is now on spending less, the official said. The official was not authorized to speak on record. The finance ministry did not immediately respond to a request for comment. The Globe and Mail was the first to report the news. The finance ministry has asked all ministries to find savings not just for one year but in the long term, the official added. All the ministries have been asked to find 7.5% from program spending for the 2026-27 fiscal year, followed by 10% in the next year and 15% in the year after. The government has asked the ministries to review their current budget, assess their ongoing programs, check whether a spending measure is meeting the objective of the program, see if some programs are being duplicated at the provincial or the municipal level and report back to the ministry. The ministries have also been asked to identify three priorities inside their ministries and reallocate funds from another program for those, the official added. The Finance Ministry is preparing for its budget document for the current fiscal year, which is likely to be presented in Parliament in early October. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
