Mental accounting occurs when people treat money differently based on its source or purpose. For instance, using a tax refund for luxury spending instead of saving, or feeling comfortable losing “bonus” money in trading. These behaviors can lead to irrational financial decisions, making it important to view all money as part of one overall portfolio for smarter management.https://navia.co.in/blog/mental-accounting-in-personal-finance-why-all-money-should-be-treated-equally/