What Habits Are Your Bank Statements Masking? Here's What To Look Out For

So let's dig into those different areas, starting with accounts, because many people will just have one current account where everything lands and everything leaves.

Why can that actually be a bit of a costly mistake, and what does the ideal account setup look like in your eyes?

So it's actually costly from two sides.

A lot of people think that money is purely mathematical.

If you're good at maths, you'll be good at money.

But money's actually mostly emotional.

I like to think that it's even 90% emotions, 10% logic and maths.

Mm.

And why I say that is because your account that your money is sat in kinda covers both of those points.

Number one, from a maths perspective, you're probably not optimizing what you're actually doing with your money if it's sat in a current account earning no interest, literally doing nothing for you.

And when you put it in different places, it can achieve different goals that you want to do in life.

And from a psychological perspective, all of your money being sat in one place is so bad.

As humans, we are weak.

We are weak-

[laughs]

... creatures, and we need friction to stop us doing the things that we actually don't want to do.

And if it's all sat there and you're thinking, "My savings are in there, my investments are in there, all of my spending money is in there, the things I wanna do next month," you're never gonna actually be able to separate that money just on pure will.

And that's why I think having it in different places is ultimately the key to stopping that psychological side of you, that weak side, from doing things that you don't wanna do with your money, which you will if it's all in one place.

And you alluded to, like, the main places that I think you should keep it.

Now, again, I like rules of five, so we're gonna stick with rules of five.

Five key places.

Number one, your current account.

Not for storing money.

It's just for where your money lands, and then we're gonna put it in other places.

Number two, an emergency fund.