What are your life goals?
Do you know what you want to achieve financially? Do you have a strategy on how to make your financial goals a reality?
There's a saying that those who fail to plan, plan to fail.
This saying also applies when you’re managing your finances. If you want sufficient savings to support you through the golden years of your life you have to take action in the present moment to make that a reality.
Proper planning isn't a guarantee for success in any way, however, a well thought out plan will guide you when things get tough because it'll remind you what you,re working towards.
A financial bucket list can keep you focused on achieving financial goals.
Why have a financial bucket list?
You can use a financial bucket list like a map that'll enable you to pay off your outstanding debts, travel the world in your own style, save money for your retirement days, and so much more. Your financial bucket list will change with your changing needs.
You’ll check off the items as you complete them in the same way you do with a regular bucket list.
Make sure you check your financial bucket list on a weekly and monthly basis depending on your exact requirements.
Once you complete the items that are on your list, you can set new financial goals.
5 important steps to creating a bucket list
What are the important things to consider when creating a financial bucket list?
1. Present vs Future
How do you want your future life to look like?
Do you require a lot of money to be happy or would you feel satisfied with a modest life?
What percentage of your income do you want to save every month?
How much do you want to have invested in 5 years? 10 years from now?
What's your investment criteria?
2. What behavioral changes do you need to make in the present?
What finacial behaviors are working for you in this moment?
What financial behaviors are keeping you stuck? What changes can you make?
3. Break up your goals into bite size chunks
Slow and steady wins the race.
Don't try to achieve all your goals at once; that'll only lead to frustration. Focus on breaking up your long term goals into bite size chunks.
For example, if you want to save $1M by the time you turn 65, you’ll have to work out on how much you need to save every month to reach this goal (don't forget to factor in inflation).
Once you have this figure you can start looking into pension funds and setting up a direct debit to make this goal a reality.
4. Check and evaluate each task you perform
As you finish each task, you’ll want to check and evaluate yourself to see if you're reaching your monthly and weekly targets. See if there are any changes in the economy and how these affect your financial goals.
5. Plan and set up new objectives
Regular evaluation of your finances will keep you focused and motivated.
As you accomplish the goals you set yourself you'll find yourself believing in your own abilities, which will increase your self esteem tremendously.
Maybe you finally pay off your credit card bills, which gives you the confidence to start saving for your future rather than spending money unnecessarily.
This leads to an increased confidence in your financial abilities which encourages you to make informed financial decisions, leading to financial stability.
A bucket list consists of the things you want to achieve in your life. A financial bucket list is a tool that ensures that you'll be able to accomplish your goals in the most efficient manner.
What's on your financial bucket list?
Please share with me in the comments section below.
Written by Michelle Blackmore
Michelle Blackmore is a financial writer who has insightful knowledge on the contemporary financial issues and the economic state that the nation is going through. Presently she writes financial articles for websites, communities and blogs.