How is your 2017 Bucket List Looking?
The bucket list 2017 how can I afford everything on my bucket list? Is the bucket list an airy fairy idea of things you think you might like to do some magical day when the financial, health, physical, time and energy planets all align in your universe? Or is it a written down list of “I am going to do/see/learn/experience”, this is when I am going to do it and this is how I am going to do it?
I can’t afford it
I believe we all have a money bucket to play with. As we earn more goes in. As we spend it goes out. To replace a dollar in the bucket requires more work than saving a dollar already in the bucket. What?
Think of it like this. You have earned $100 from profit on your business or from pay. It’s nearly ready to go in the bucket. But wait. First the taxman takes between $10.50 and $33 depending how much you earn so you are left with between $89.50 if you are on a low income and $67 if you are on a high income. If you have Kiwisaver or any other automatic deductions these will come out too.
Now, mentally, put what’s left in the bucket. There are holes in the bucket. One for the rent or mortgage, one for essentials like food and lots of little holes for things that are nice to have and to do but not absolutely necessary. There are some more holes for things like parking fines, bank charges and credit card interest. And some more holes for wasted electricity, gym memberships that don’t get used, and impulse buys. Add some more holes for takeaways, coffees, cafes, entertainment, that extra phone plan or movie, the toy to keep a child quiet and that bucket is looking more like a sieve.
Wants and Needs Economics 101
Many years ago I encouraged my son to take a class in economics. He fell out with the teacher almost immediately when the class was asked to draw up a list of wants and needs. Apparently he had most in the wrong columns. So what do you have in the needs column that could be in the wants column?
Do you have some big ticket items on that bucket list?
You can finance them by plugging some of the holes in the bucket. Remember it’s less effort to save a dollar than make a dollar.
To replace the $ you put in for a start you need to earn much more than the $ that goes into the bucket. So saving is more effective than working harder and longer. Isn’t that great news?
The Bucket List Equation
What is on your bucket list, when are you going to do it and how are you going to do it?
Let’s go back to school and create a savings equation. x takeaways + y new shoes + z drinks after work = 1 adventure