A bucket list is a list of things you want to do before you die. The list includes things that will bring you joy. Financial bucket lists do the same thing, but focus on personal finance goals.
Some people think that the Financial Bucket List is the same as a Budget, but they are different. A budget is about making sure you can afford everything on your list, and a financial bucket list is about what makes you happy, not how much it costs.
What should I put on my Financial Bucket List?
Items on your financial bucket list can range from saving enough money for retirement, paying off debts to buying a house.
The idea of the financial bucket list is that you should have a plan for your finances and work towards achieving those goals. This will ensure you have financial freedom and security in the future. Items to include can be to:
- Pay off all debt
- Secure life insurance by getting whole and/or term life insurance quotes
- Save up an emergency fund (3 months to a year)
- Create a passive income stream
- Get out of credit card debt
- Read a set number of finance books
- Improve your FICO score
- Negotiate a raise
- Pay cash for a vehicle
- Maximize your annual IRA contributions
- Max Out Your 401k/TSP/403B
- Create your own scholarship
- Complete a 30-Day No Spend Challenge
- Pay off your mortgage
As you can see, the items can be as grand or simple as you choose. The goal is to add items that excite you and stretch you a bit, based on where you are currently with your finances and where you would like to be.
Benefits of Creating & Checking Off Your Own Financial Bucket List
A financial bucket list can help you make better decisions about your finances. It can help prioritize which financial goals are most important to achieve and which ones are less important.
The main benefit of creating your own financial bucket list is that it helps you set achievable goals for yourself, and also helps you set priorities for your future.
The 5 Steps to Create the Perfect Financial Bucket List
The financial bucket list should be created with your future in mind. It needs to be revisited often, and it is not a one-time task.
It is important to set a goal for your list, and then take the necessary steps towards achieving them.
The first step is to figure out what you want or need in life, then identify what you are currently doing or not doing that prevents you from achieving that dream, and finally, identify what you need to do or change to achieve your dream.
The next step is to create a plan for how much money is needed and when it is needed.
The third step is to look at your current budget and see where there are places where money can be saved, so it can be used towards your goals.
The fourth step is to set up a timeline for what you will do to achieve your goals.
The fifth step is to figure out what you will do if your timeline changes. It is important to have a plan for how much money you need and when it needs to be brought in. This can help you achieve your goals.