When creating a budget for your bucket list you have to keep in mind a bunch of things. The first thing is that there will always be more items to spend on vs. how much you bring in. You have to make a funnel with your money and make sure that the most important things that TRULY make you happy get the money vs. the stupid things. This is how you do it.
1. Make a list of all the things that truly make you happy. A home should be one of them! Then list them off on a list. If you like to travel, carve off $$$$$ so that you can take a bunch of trips. If you like cars, allocate money for that. If you want to get your MBA that should be on the list with a dollar amount. Don’t be boring! This is your life so write down everything that would be awesome.
2. List all of the things that you have to pay for like rent or mortgage, student loans, electricity, insurance, etc. If there is no way to cancel or get rid of the item – it goes on the list. List them in order of expense. So most expensive items comes first, second most expensive, etc.
3. Figure out how much you make. Look through your chequing account and add up how much actually goes into your account. Then write that number at the top of a blank page.
4. Look through your list of items that you want to achieve and start to deduct them. Take off your mortgage/rent and mandatory deductions and then start adding in the items that get you most excited. Took at the list of awesomeness that you TOTALLY want to do and see which ones give you a bit of a “spark” when you read them. The biggest “spark” should give it priority so the item that gets you most excited should be highest on your list!
5. Write all of your deductions down and subtract them from your total income amount. If your income fluctuates take an average of three months and build your income around that. Try to fit in as many life goals as you can. Even if it takes over a year to save for something you’ve always wanted – do it. You deserve to do everything on your list.
If you bang off all of your items of love one by one when you have saved the money – you’ll be a star. Think how great it will be to put a plan of action against all of these things you’ve dreamed about but never achieved yet. Don’t let you money slip away. Make sure you spend it on things that make you happy vs. crap you don’t need. If your cable bill is low on your list – cancel it. Same with the gym you don’t go to and use it towards things you really love.
Have an awesome week,
Dave
