I always try to keep just enough money in my chequing account to cover my next months rent and whatever I currently have owing on my credit cards. If I have any more money then that in my account it drives me crazy. You might be thinking I’m a bit off at this point, why would having too much money in your account ever be a problem? Let me explain.
Treating your dollars like employees
If you haven’t read The Richest Man in Babylon, I highly recommend it, it is a bit dated (published in the 1920s) but the parables still hold today. Many of the parables in the book talk about how you should think about your money as employees who you can put to work and use to make even more money. Whenever I look at money sitting in my chequing account earning 0.05% interest I can’t help but feel indignant about how lazy my employees are being. There is literally no excuse for them not to be working harder and making me more money then they are. I would much rather have them toiling away in the stock market, or at the very least in my high interest savings account at Peoples Trust (currently returning 2.5%). The harder my money is working the happier I am.