Have your eye on an ambitious savings goal – a trip to Italy? A wedding? Here are the steps that will get you there.

 

Define Your Goal Clearly

Ask yourself:

• What do I want? (Example: 10-day Italy trip.)
• When do I want it? (Example: Next June.)
• Why does it matter? (Motivation keeps you disciplined.)

A goal that is specific and time-bound is easier to plan for. 

 

Determine the Total Cost

Break the goal into parts.

 

Vacation Wedding Example:

• Flights

• Hotel
• Catering
• Activities
• Transportation

Add a buffer (typically 10–15%) for unexpected expenses.

 

Example: Vacation Wedding Budget Plan Summary

• Flights: $1,800
• Hotel:   $2,200
• Catering:   $1,200
• Activities: $1,000
• Transportation: $500
• Buffer (10%): $670

Total: $7,370

Calculate Your Monthly Saving Target

For example:

• Goal = $7,370
• Time = 18 months
  ➡ Monthly savings needed = $7,370 ÷ 18 = $410/month

Tip: The longer the timeline, the lower your monthly savings need to be.

 

Create a Separate “Goal” Account

This helps your brain — and your budget — treat the money as unavailable.

Possible options:

• High-yield savings account (for short-term goals)
• Money market account
• Envelope method (cash, for small goals)

Automate transfers on payday if possible — “set it and forget it.”

 

Adjust Your Current Spending

If the monthly target is too high, ask:

Can you:

• Reduce subscription services?
• Eat out less often?
• Skip the daily takeout coffee?
• Limit impulse purchases?
• Pause other optional goals temporarily?

Or:

• Extend your timeline instead.

 

Track Progress Weekly or Monthly

Tools that help:

• A spreadsheet
• Budgeting apps 
• Paper envelope system
• Calendar reminders

Motivation strategy:

• Track % completed
• Celebrate milestones (without undoing savings)

 

Revisit the Plan When Life Changes

Adjust if:

• Income changes
• You get unexpected money (bonus, tax refund)
• Prices for your goal change

Windfalls:

• Put at least part toward the goal immediately.