We devote a lot of energy to our New Year’s resolutions. We list our ambitious goals for our bodies, our relationships, and our financial lives.
But what about the good things we’ve already done?
The idea of a “reverse bucket list” is a great complement to your resolutions for 2025. In essence, a reverse bucket list acknowledges the accomplishments and progress that you earned for yourself in the current year. Think of it like Spotify Wrapped, but for your finances.
Acknowledging your wins builds confidence and highlights good habits and areas for improvement. Did you stick to your budget? Pay off a lingering debt? Increase your retirement contributions? Every step forward, big or small, contributes to your long-term financial wellness.
Crafting Your Reverse Bucket List
- Take Inventory
Review the past year. Look at your financial statements, investment accounts, and day-to-day spending habits, and make note of the things you’re proud of. Maybe you hit your savings target, increased retirement savings, avoided unnecessary credit card debt, or diversified your portfolio. - Celebrate Progress
Reflect on how those milestones have positively impacted your financial health. Perhaps that extra savings gave you peace of mind when you encountered an unexpected expense, or paying down debt freed up funds for other priorities. - Find Themes
Identify the habits or strategies that were successful. Were you more intentional about your spending? Did automating money play a role in growing your savings? Understanding what worked – and what didn’t – can serve as a guide for the future.
Setting Goals for 2025
Once you’ve done your look backward, you can clearly identify financial challenges and objectives for the year ahead. Use that reverse bucket list as a starting point and focus on building on your accomplishments. For example, if you increased your retirement contributions in 2024, aim to do so again—even if it’s just by 1%. Keep your goals attainable within your current financial situation. If you are unrealistic about your ambitions, it will lead to frustration, whereas smaller, measurable steps are more sustainable and, in the long run, rewarding. Accountability is also critical. Working with a financial advisor may be another way to help improve your chances of staying on track.
Some strategies worth considering as you plan for 2025 include revisiting your emergency fund to ensure you have 3–6 months of living expenses saved in an easily accessible account. If you have debt, prioritize high-interest debt first, or use a snowball approach by paying off small balances for quick wins.
Retirement planning is another area to assess. Increasing contributions to your retirement accounts, especially to maximize any employer match, can have a long-term impact. Finally, build in some enjoyment. Plan for big expenses like a vacation, home renovation, or major life event to avoid financial stress later.
The advantage of the reverse bucket list approach is that the longer you do it, the more insights you will gain into your own spending and saving patterns. This lets you approach New Year’s financial resolutions with a clearer idea of what you can realistically accomplish.
As always, if you need support in setting or refining your financial plans, the team at Prime Capital Financial is here to help. Let’s make 2025 a year of meaningful progress and financial wellness.
The post Planning 2025 Resolutions? Don’t Overlook Your 2024 Wins appeared first on Prime Capital Financial.
