Two Bank Accounts? No, You may need Four! - Part 2

Read? Christmas Days Reflections

If you truly wish to stay calm and steady in the world of investing through the volatile stock market. You have to learn to mentally, financially, and physically separate your investment needs from other needs. It is best to confine your investing activities to itself and your other needs are adequately taken care of and have the least dependency on the success or failure of your investment activities.

It has taken me many years to realize the power of separate bank accounts; and knowing that I should have enough to overcome the worst market condition and that really helps me to stay calm and steady in the highly volatile market.

Even if I have extra money at hand, I will evaluate it carefully which account should it go to and not necessary it will go to investment account as expected expenses may change from time to time in our life cycle. I will forecast what are the expected expenses in the next 1-2 years so that I will not get caught in a financial situation that I am forced to liquate my investment at losses to fund these expected expenses.

Read? Why you may need four bank accounts?