What’s on your bucket list?
A bucket list is essential if you want to make the most of your life. Financial planning is about living your desired lifestyle without fearing that you’ll run out of money – or worse, dying with too much money left over. The worst-case scenario would be running out of money before life runs out. Equally detrimental is lying on your deathbed with too much money in the bank, realising it’s too late to change anything.
Financial planning’s goal is to ensure that when your time’s up, you look back over your life and the decisions made without regrets. One way to achieve this is by creating a bucket list. Life is not a rehearsal, so list all the things you want to do or experience, estimate the cost, and set timelines.
Don’t wait until you’re 50, 60, or 65, or any other round number to start crossing off items on your list. For our clients, we integrate these bucket list items into our financial forecasts to ensure their wealth is structured to fund their bucket list. We want to ensure they have the right money available at the right time to accomplish everything they want in the time they have left.
Bucket list items can be about grand adventures or simply helping the grandkids through University. Research has shown that buying experiences are generally more rewarding than buying stuff. Remember, your legacy is the stories people will tell about you after you’re gone.
Suppose your top retirement goal is an expensive World Cruise. Cash flow projections may show that if you retire one year earlier, you won’t be able to afford that holiday. But, if you work an extra year, you can. If you retire before creating and costing your bucket list, your ambitions may become unaffordable, leading to regrets about retiring too early without a lasting plan.
Knowing in advance that you need to work that extra year will allow you to make an informed decision. Is your priority to retire a year earlier or go on that cruise? If you decide to work that extra year, at least you’re working for a purpose. Conversely, you might find out you can afford a less expensive cruise without any adverse financial consequences.
Bucket lists are an essential element of any financial plan. Include yours in your financial plan to ensure you don’t look back with regrets. Have you created your bucket list? Can you afford to live the life of your dreams? If you haven’t already, you can assess your financial planning using our free scorecard.
Click the ScoreMy link below to find out your financial planning percentage. It’s free, and you don’t need to share any personal details to get your score but if you want to there’s the option of sharing your score directly with us in case you want to find out how we might be able to help you with planning your finances around your bucket.