Why splitting your money into three categories actually matters

A single "total net worth" number can hide a genuinely risky situation: someone with €50,000 entirely in liquid savings and someone with €50,000 entirely tied up in long-term investments and a pension fund are in very different positions, even though the top-line number is identical.

Liquid money is for emergencies and short-term plans — it needs to be accessible, not necessarily high-growth. Invested money is working toward medium/long-term goals and can tolerate volatility. Retirement money has the longest horizon of all and usually the least flexibility.

Looking at the breakdown, not just the total, is how you notice things like "I have almost nothing liquid" or "everything is tied up long-term" before they become a real problem — which is exactly what the dashboard's category breakdown is for.