I looked at my current bank account this morning and realised it’s held the least money it’s ever had.

Nothing coming in. Not a single euro or dollar.

I felt like I could breathe a huge sigh of relief.

Which you might think is strange - shouldn't I have been panicking?

When I thought big balances meant wealth

I used to think I was wealthy when my current bank account looked big. A big balance meant I was rich, smart, in demand.

That was back when I didn’t know how to manage my money properly, and that habit followed me for years at a Bank.

For the first year or so in Banking, I was still hoarding cash just like I saw everyone around me do whilst I was growing up. Like I needed to watch it all in one place to reassure myself that my sacrifices were paying off.

The 1am realization that changed everything

Then one week, maybe a few years ago, I looked at my Bank balance at 1am on my way back from work, and realised it didn’t make me happy anymore.

After that day, I made a commitment to give my money a purpose. Or more specifically, I started asking, “What would I rather be doing with this dollar?”.

What purposeful money actually looks like

And most of the time, my answers were pretty specific and wacky. Three years ago, my parents wanted to visit Singapore to come and see me. I put money aside in a separate account specifically to entertain and provide for them. They had the best time, and I wasn’t financially anxious at all. Why? Because I had planned to keep that money aside to spend on them without guilt. In fact, it made me so happy to spend on the people I love the most.

Another purposeful allocation I made was ringfencing a 6-month emergency fund. Having that safety net meant I could stop constantly worrying about unexpected expenses, and worse, stop living in survival mode. All of a sudden, I had more headspace to get creative with my career.

Similarly, I told myself I’d rather my dollars provide for my retirement, since I had no state pension as an expat. So I became very deliberate with investing for my long-term, to secure my financial future. It took some time to select the right brokerage and funds, but now my wealth compounds on autopilot, and takes me 15 mins to manage every 6 months. That’s it.

Why less visible money feels safer

I’m not saying money sat in your bank account is useless. Sometimes, I love just knowing there’s enough to feel like I’m not “poor”.

But for me, a former Banker? My cash is now split consciously into specific accounts to meet my life goals.

Often now, I have less cash in my current account. Only because I’ve ensured my income funds my fixed costs and specific goals, first.

When I see less in my current account now, I actually feel safer. I take bigger risks, am more present in my relationships, and actually feel more capable to grow Money Mojo, my business.

The cost of financial confusion

That kind of psychological safety gets me further than the many years where I just watched cash grow at a 0-1% interest rate at a known retail bank.

Every paycheck I received meant being happy for 30 mins, spending more to escape despite thinking I “lived below my means”, and then consuming hours of financial advice which I was too overwhelmed to take action on. So my money didn’t really grow.

If anything, it lost value due to inflation.

The mindset shift that made all the difference

I used to worry that a low current bank balance meant I’d feel less rich. That I should work twice as hard and save more.

But looking at how close I am getting to my financial life goals because I’m giving my money a specific purpose? I’m just excited.

Because I know what I’m going to do with my wealth.

And it’s not going to be losing it to a lack of financial clarity.