30 Days of Tips - Scattering Money

Tip #4: I usually don't give suggestions on investments or how to keep your money or any bank matters at all, really. But I have found this one to be very useful & I want to share it. Most of us suffer from Burning Pocket Syndrome. It's evident in that once we have a certain amount of money banked, we always tend to spend it. Now the amount that we need to have banked before spending varies for each of us, but we all have that dollar amount where, when we see it on our account statement, we start spending. I believe this is a psychological phenomenon, similar to how it feels much easier to put $250 on our credit card than to spend $40 in cash.

So one of my solutions for this has been to scatter our money. We currently have several different bank accounts, none of them very full, but each of them with some small sum. We rarely reach that psychological point of spending, plus, we usually have money to draw on if we decide we need something right away.