Hey de$troyers, I'm letting Michael from SuperMillennial.com take over the site today. Check out his awesome post on creating a financial bucket list! ~M$M
Bucket lists, nearly everyone has one as it’s a way to motivate yourself to work, earn, and save to reach your goals. My personal bucket list started after seeing Jack Nicholson and Morgan Freeman travel the world looking to fully live their life before it was over. I was 20 years old when I first saw that movie and decided I would do the same, even though my life was just getting started. I decided to write down a list of all places I wanted to travel, all the famous athletes/celebrities I wanted to meet and all the experiences I wanted to accomplish before I exit this world.
Flash forward nearly ten years later and I can say it has been one of the best influences in my life and challenged me to make these dreams come to life. From skydiving, golfing at Pebble Beach or swimming with dolphins in the Bahamas, they’ve been memories I’ll remember forever. How have I been able to accomplish all these and a lot of others? Actually it’s pretty simple:
Personal Finance Habits
Seriously that’s it, so I know others can do it as well. Even ten years ago when I started my personal “Bucket List” I quickly realized it takes money (sometimes a lot) to do certain events or travel to faraway destinations. Since then I’ve taken action to figure out how to earn more, save more, invest more and find a balance doing it. As fulfilling (and fun) as my personal bucket list is, I wanted to also create one for my finances. Ultimately I added a new tab on my bucket list doc to include my “financial bucket list.”
Some people might not have a bucket list, let alone a financial bucket list. Both of these are essentially a list of dreams with a set date to try to accomplish them all by. It’s easy to have a vision of wanting to be successful, of wanting to be worth a million dollars, or retiring at 45 to travel the world. But if you don’t have a plan you’ll most likely never end up getting there. The key is figure out your goals and work backwards to achieve them (aka reverse engineering).
Not sure what to include in your financial bucket list? Here’s a few ideas to get you thinking:
Buy A House
One of the oldest financial goals ever. People want the pride of homeownership. With adequate planning, saving and good credit it can happen. Don’t rush this decision and make sure to be fully committed as it will likely be the largest purchase of your life.
Pay Off Student Loan Debt
With student loan debt increasing every year this has become a bigger part of most millennials financial situation. Find ways to pay them down (like reading this blog), consolidate high interest loans and become debt free as soon as possible.
Become a Millionaire
Who doesn’t want to update their account(s) to see seven figures? No one I’ve ever met has said otherwise. What age do you want to reach this achievement? A million may seem like a lot to some but others want to be worth five, ten or even fifty million. Of course the odds go down the higher number you go but figure out a number and find ways to earn and save more.
***The average millionaire has seven sources of income, so start finding ways to create income from more than your 9-5 no matter how big your salary is. <—THIS is powerful. I need to go back and find that stat so I can write about it! ~M$M
If you’ve went to college (and paid off your student loan debt) you know that getting an education is not cheap. If you have kids and want them to go to college find ways to start saving early and contributing often to help them with their education costs. Start with a 529 plan that allows you and other family members to contribute for future educational expenses.
What age do you want to retire so you can enjoy life and accomplish all of your bucket list items? Most likely sooner than 65. Retiring early takes planning; you need to have low expenses, high savings, insurance, and no debt. Make sure to look at “Retirement Calculators” to see what you’ll need saved to make your money last.
How much would you like to contribute to your favorite charities? As Tony Robbins said, “The secret to living is giving.” Find causes that matter to you and plan out ways to invest your time or money to contribute to them.
These are a just a few popular options but others could include: achieving the perfect credit score, starting a business, having a six month emergency fund <——my favorite! ~M$M, making a $1,000 a month from the internet or paying cash for a car.
As you can see there are nearly an endless amount of options when it comes to creating your financial bucket list. While it may be easier or more fun to daydream about the tropical destinations on your bucket list, you’ll need money to fund them. Spend some time to create a financial bucket list that is personalized to your own financial situation and goals. Make sure they are achievable but challenging. Good luck to everyone!