You may think that you are too young to start making a bucket list. However, if you wait until later, there is a chance that there will not be sufficient time to achieve your dreams. A bucket list is all those things that you want to try, life experiences you want to enjoy, and the financial goals you want to achieve.
Why have a bucket list
Here are three reasons why you must have a bucket list.
- It makes you take a break and think what you want to experience during your lifetime
- The list helps you remember that life is finite and time is scarce
- It increases your happiness by providing excitement and hope
An important factor to achieve your dreams is to invest wisely and grow your money. Here is a five-step financial plan that will help you live your dreams before you kick your bucket list.
- Determine the amount needed
From your bucket list, shortlist the three goals that excite you the most. The next step is to work out the amount required to achieve these goals. It is possible that some of your goals will be in the long-term and require little money. On the other hand, there may be some goals, which require a huge amount of funds. Moreover, your bucket list may change at different times in your life. You must periodically review your list to ensure you do not lose sight of your dreams.
- Calculate the time period
Once you prepare a bucket list, you need to list down the time you have before you are able to accumulate the required funds. The time will vary from one goal to another. When calculating the time period, you need to remember your physical condition at the time you actually will be able to achieve your dream.
- Develop a financial plan
You may choose among several financial products such as mutual funds, equities, government securities, bonds, pension plans, and others with systematic financial planning. An important factor while choosing one or more of these options is the investment horizon. Additionally, your risk appetite will play an important role in choosing the financial instrument. Stock investing is risky because of market volatility, which means you must be willing to assume higher risks to earn more returns in the long-term. Similarly, fixed deposits (FDs) or bonds are almost risk-free but do not provide higher returns (which may even be less than the rate of inflation). Investing in equity mutual fund plans may be beneficial because these allow you to earn higher returns through stock investing while reducing the risk of direct equities.
- Regular monitoring
Investing is not a one-time procedure. You must regularly monitor the performance of your investments and make modifications as deemed necessary. A periodic review also helps you to understand if you are on track to meet the financial requirements to achieve your bucket list.
- Research your goals
By investing in mutual funds, bonds, and other financial instruments, you may have the money needed to live your dreams. However, to ensure everything goes well and avoid disappointment, it is important you research about your goals. Searching on the World Wide Web is the most efficient way to collect information about the best way to live your lifelong dream. You may read reviews and feedback from other people or check out forums or discussion boards to find more information. When you are young, you may not have too many responsibilities, and may not give much importance to saving and investing. However, when you start early, you are able to achieve several benefits. One of the biggest advantages of beginning early is the power of compounding.
When you invest in mutual funds or other financial instruments, your capital earns returns in the form of dividends or interest. These earnings are reinvested in the same investment vehicle to make additional income. Therefore, over the long-term, you are able to accumulate wealth because of the compounding effect.
Investing in the right financial products is important to ensure you are able to achieve your dreams. With a large number of options, choosing the right one may be confusing. You may make good use of ARQ, the proprietary technology-driven investment from Angel Wealth.
As an integral highlight of Angel Wealth’s mobile application, ARQ uses scientific methods to analyse and evaluate different financial products based on a billion data points. These are matched with your lifestyle, goals, and risk appetite to provide customised investment recommendations. The entire analysis and recommendation are automated thereby eliminating all human bias and intervention.