Warning for anyone trying viral saving trick that could see you LOSE money

SAVVY savers are being warned about a viral saving trend that could actually see you lose money.

The trend of "cash stuffing" is growing in popularity but experts warn that it does come with some risks.

Cash stuffing is a way of budgeting that involves withdrawing money from your bank and dividing it up into labelled wallets for different spending categories.

For instance, people might have a wallet for food shopping, petrol, bills and leisure activities.

Some also stuff cash throughout the year for big events like Christmas, anniversaries and birthdays.

The budgeting hack has grown in popularity due to people sharing their cash stuffing to social media platforms such as TikTok.

Single mum, Euphemia Moore, 38, paid off £8k of debt in two years and saved £7k using the cash stuffing method.

And one woman who started cash stuffing to clear her £56k debt turned the budgeting hack into a business and made a whopping £695k last year.

But experts at Admiral Home Insurance are warning budgeting Brits about the security risks involved in having large sums of money stashed in your house.

Insurance risk

Noel Summerfield, head of household insurance at Admiral, said: "Allocating different spending pots can be an effective way of budgeting and staying on top of spending, however, it does have its risks.

"We have seen multiple claims where large amounts of cash kept in envelopes has been taken during a break-in."

The insurer has recently reported that cash claims have doubled in the first three months of 2023.

And they are urging people who are using this method of saving to check how much their cash insurance policy covers them for should the worst happen, and the money is lost or stolen.

The average claim for thefts involving cash over the last five years is £336.