Read? Two Bank Accounts? No, You may need Four! - (5)
Talking about mental accounting on personal finance and budgeting?
Uncle8888 is big on mental accounting to avoid sequence-of-returns risk for the next two years.
The big idea here is to spend what has been "earned" and not to spend future money that is not "earned"!
Cash in this bank account has been "earned" and will be rotting to fund household expenses for 2019/2020
With one dedicated bank account for household expenses; whenever he looked at the account balance; he won't feel rich enough to overspend or feel that poor to under spend.
He will naturally adjust and adapt to the remaining account balance to ensure that he doesn't spend until the account drop below the minimum sum and get charged by the bank. So far; it works naturally well for him for decades!
You are very disciplined! It takes discipline to do this. haha
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