Many people who want to accomplish basic goals often create a bucket list. This list may include many things an individual wants to accomplish before they die. A bucket list can include traveling to offering their time for charities. One thing that many people do not think about is creating a bucket list that will be used to reach specific financial goals. Review a few ideas for a financial bucket list.
There are many people who are spending money to pay rent each month. The money for rent can easily be used to make a house payment each month. A home is seen as having financial freedom that often is a milestone for an individual or family. One thing to keep in mind is not worrying about eviction or the problems with neighbors being in close proximity.
One of the biggest expenses for families and individuals is paying a mortgage. This will need to be one of the items that should be near the top of any bucket list. The main benefit is not needing to ensure the mortgage payments are being made each month. Most people occur significant levels of stress which is due to having increased debt levels. This can include migraine headaches and anxiety. Paying off debts will be the best way to ensure they will not be a burden after retirement.
Many businesses have replaced a traditional pension with standard retirement accounts. This is often in the form of an IRA or a 401 K. The goal for any worker is to grow their retirement account until is is at its maximum. Most workers often put in a minimum amount which means most accounts are often well below $75,000. Individuals will have a less stressful life if accounts are at their maximum. The amount that should be added to retirement accounts each year is about $15,000.
One important goal for many people is saving money for a child’s education. Families are being told by many financial experts to conserve their money and have children take out loans. Most parents will use a combination of savings and loans for a child’s education. The average tuition for college students will be about $17,000. Parents will need to start savings for their child’s future early. This will be a task that should be included on any parent’s financial bucket list.
There are many events which can occur that may be unexpected and require financial reserves. A home may suffer damage from a storm or even a fire. Individuals in a home may also have a health issue that may require a lengthy hospital stay. The goal of an emergency fund is to have money that is needed for unexpected expenses without suffering additional financial pressures.