The ‘Bucket List’ Approach to Retirement Budgeting — and Why It Works
Written by
Laura Bogart
Edited by
Kristen Mae
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Everyone knows what a bucket list is: the list of things you want to do before you — to put it crudely — “kick the bucket.” Some bucket list items are inspiring, like reconnecting with family. Others are all about fun, including Vegas vacations or puppy yoga. You don’t need to be knocking on heaven’s door to build your own bucket list and apply its general principles to improve your life and finances. In fact, there’s even a whole philosophy of budgeting for retirement that takes a bucket-list approach.
With the bucket-list approach to retirement saving, you’re encouraged to integrate your values and passions into your budget — essentially building your desired experiences directly into your financial planning. While this approach seems counterintuitive to traditional retirement advice, which emphasizes tightening your belt, many experts say it works.
GOBankingRates spoke with a few experts to find out why.
The Bucket-List Approach Involves Values-Based Budgeting
Leanna Haakons, founder and owner of Black Hawk Financial, likes the bucket-list approach to retirement planning because it reframes traditional approaches to focus on personal priorities and purpose, not just necessities. Essentially, the bucket-list method asks you to consider possibilities instead of restrictions.
“Instead of thinking in terms of limitations, it focuses on identifying the experiences that one values most — such as travel, family, education or passion projects — and building your budget around those priorities,” she said. “This method turns financial planning into something personal and motivating, not just a numbers exercise.”
Writing Your Bucket List Helps You Prioritize Your Savings Goals
When you think about everything you’d like to do in life, it’s easy to get overwhelmed by options — especially if you have a healthy sense of adventure. Yes, you’d like to visit Dollywood; you also want to go skydiving when you’re in your 70s, just to say you did it.
According to Haakons, the beauty of bucket-list budgeting is that it forces you to sit down and determine what will bring you genuine joy versus what simply seems cool. You want to use your money wisely — not just for bragging rights.
“Start by getting clear on what truly brings you joy and fulfillment at this stage of life, then rank those experiences by importance and timing,” she said. “From there, assign a realistic budget to each and revisit it regularly. The idea is to make conscious trade-offs so you can enjoy more of what matters if you are intentional about what does not. This approach helps balance living fully today while protecting long-term security.”
Avoiding FOMO Can Keep You Financially on Track
Feeling like you’ve spent your whole life working hard only to sit at home and pinch pennies in retirement isn’t fun. Getting bored or frustrated can lead to irrational or impulsive financial decisions — like booking a last-minute cruise regardless of the cost.
You’ll be better off planning more meaningful excursions in advance. If you want to see the whales before you die, you’ll have budgeted for that cruise and explored cost-effective options ahead of time. You’ll also avoid feeling resentful about financial limits in general.
“When your spending reflects your values, you feel more aligned and confident in your financial decisions,” Haakons said. “Every dollar you allocate supports a life goal, not just an expense line. For many retirees, this creates a deeper sense of purpose and helps avoid the feeling of playing it too safe or missing out on the rewards of their earlier years of hard work.”
Creating Buckets Within Your Bucket List Encourages Smart Saving
If your bucket list is overflowing with interests and passions, that’s actually a good thing — in part because it compels you to strategically plan and sequence those goals. Matt Gellene, head of Specialized Consumer Client Solutions at Bank of America, recommends organizing your goals into different buckets within your bucket list.
“For example, think of your short-term bucket as immediate goals you want to achieve within five years of entering retirement,” he said. “Your medium-term bucket goals (five to 10 years) might include larger projects such as starting a passion-project business or buying a vacation home.”
Long-term bucket goals may include leaving a legacy for loved ones or planning for long-term care needs. Gellene says structuring your goals this way allows you to achieve your dreams while maintaining financial stability.
The Bucket-List Approach Requires Maintenance
Like any budgeting system, you’ll want to regularly check your progress. Gellene recommends reviewing your bucket-list budget at least once a year and making adjustments as your life changes.
True to the spirit of the method, he also encourages taking heart in meeting your goals and celebrating yourself.
“Don’t forget to celebrate all of your wins along the way! Fully funding a smaller bucket-list item or hitting a savings target are important milestones,” he said. “Celebrating these achievements can keep your motivation high as you work toward your long-term goals.”
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