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4 steps to build your 'financial bucket list'

Small, attainable goals could be secret to success.

GOLDEN VALLEY, Minn. — When a new year rolls around, we often think about setting goals for weight loss or self-care, but many people consider money-related resolutions too. To be confident in your financial future, you might want to think about creating a financial bucket list.

"A financial bucket list is all of the things we want to accomplish before we 'kick the bucket,'" said Justin Halverson, founder of Great Waters Financial. "Just like skydiving and traveling the world, a financial bucket list should contain lofty, yet attainable goals. Setting these goals and taking control may help you feel more confident and secure in your financial future."

Halvorson suggest four key items that should be part of any "financial bucket list":

1. Eliminate Debt

"Whether it’s student loans, credit card debt, car loans or your home mortgage, the reality is, most Americans have debt," Halverson said. "It’s important we tackle our high interest debt first. This is the debt we are wasting the most money on. I recommend crunching the numbers to see how high interest rates add up."

2. Build a 6 month emergency fund

"An emergency fund is money you can access at any time to cover unexpected expenses, like a medical bill or home repair," Halverson said. "The problem is, more than half of households do not have an emergency savings account, including a majority of people older than 50. That’s a dangerous position to be in so close to retirement. I recommend my clients have 6 months of expenses saved in their emergency fund. That might sound like a lot, but these bucket list goals should be ambitious!"

3. Save 15% of your income

One of the biggest fears I hear from people is that they are worried about running out of money in retirement. It’s important to find a financial advisor who takes the time to get to know your unique situation," Halverson said. "Play an active role in your finances and work with your advisor to create a comprehensive financial strategy that is appropriate for your age and risk tolerance. It should cover everything from retirement income to long term care and estate planning."

4. Create a financial plan

"One of the biggest fears I hear from people is that they are worried about running out of money in retirement. It’s important to find a financial advisor who takes the time to get to know your unique situation," Halverson said. "Play an active role in your finances and work with your advisor to create a comprehensive financial strategy that is appropriate for your age and risk tolerance. It should cover everything from retirement income to long term care and estate planning."

Halverson recommends getting your "financial bucket list" started by organizing your credit card debt first. Pay off the smallest debt first, while making minimum payment on other cards. Also, cut any unnecessary expenses to save money. And start saving by starting small, $10 to $20 a week and building toward 15% of your paycheck.

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