What to Include in Your Financial Bucket List

Getting better with money can result to a life lived comfortably without worries for the future.

By Marife Remo

Bucket lists of all types are great. They inspire people to do more in order to reach certain goals over a lifetime. A bucket list of the financial kind may be the most practical to live by as it also teaches one to be better with money.    

To start a financial bucket list, the framework should consider three important factors in financial planning: spending, saving and investing. The list should definitely include a goal on how to manage spending with the purpose of minimizing it, which brings us to saving. What to do with saved money? Investment. Getting better with money can result to a life lived comfortably without worries for the future. 

Monetary accomplishments are also a joy to aspire and attain. Here are just a few financial milestones to include in your list.   

Freedom from Debts
Who has not tried incurring debt? Even the richest people on the planet have at least one debt waiting to be paid. Why are debts easier to amass than wealth? Not all debts are bad though. Bank loans that went into different types of investments will eventually pay off?these are good ones. The bad ones are growing credit card debts resulting from reckless spending. Being debt-free is an unmatched feeling and definitely better than the fleeting fancy that is impulsive shopping. Having this mindset can help you stick to a debt-free plan to help you tick off more financial goals.  

A three-month Emergency Fund
There?s a reason why being debt-free comes first. Any extra income saved can easily go into your emergency fund that will help to cover unforeseen circumstances coming your way. Three months is a safe amount of time to still spend securely while finances are out of sorts and still recovering. A three-month emergency fund is a huge amount of money to be set aside?no mean feat that is why we can consider it a goal. It?s also great to invest on health or life insurance plans, which can also serve as emergency backup plans.  

Investments and more
Money grows in banks and investments. How to invest money? One way is to consider having a flexible variable universal life insurance (VUL), like FWD?s Set for Life, which is a policy that helps you save up while at the same time allowing the investment of the cash value in excess of your regular premiums. Joining mutual funds is another investment strategy to consider. Professional money managers operate this type of pooled fund that invests on assets like stocks and bonds. Sounds Greek to you? Financial advisors specializing on investments can help you with these.  

An Overview of a Retirement Plan
It is heartbreaking to know of senior citizens being forced to continue working due to lack of proper retirement planning. You think you?re too young to be considering retirement? There?s no such thing as being too early for the race to retire. What?s your source of retirement funds? Can you sustain it? Which financial product can work best with your situation? These are just some of the more important questions to ask. To get you started, it?s best to talk to a retirement specialist from a reputable insurance company with knowledge on current and future retirement trends in the Philippines.       
Thinking about starting your own list now? Just keep in mind that having your own financial bucket list is a long-term commitment that you can work on at your own pace and perfect at your own time. It?s okay to start over again when things don?t work out at first. Good luck tackling each goal!