It’s important to set financial goals when saving for a holiday to keep you focused on your (realistic) personal finances and your holiday budget.
You might even find this exercise beneficial to you and your partner’s lifelong plans - not just to save for a holiday (although it’s a nice purpose to have!).
Set short-term and long-term financial goals
When it comes to goal setting, it helps to be very specific.
I would recommend setting short- and long-term financial goals with timeframes against each. Otherwise, you’ll find yourself trying to achieve too many financial goals at once, which could be a recipe for failure.
Distinguish the holiday spends that you want to set short- and long-term goals for. You’ll find that you’ll want to include big-ticket items in your plan, like flights and accommodation, as these are the building blocks that you’ll really need to plan your finances around when saving.
Add a timeframe
When saving for a holiday, it’s especially important to be as specific as possible when it comes to the timeframes that you set. Flights and accommodation, for example, can’t be left to the last minute.
Having a checklist of goals that you can tick off can be so much more motivating.
Tip: Set reminders on your phone or calendar before these are due to be booked or paid for.
Review your progress
On a monthly or fortnightly basis, you and your partner should review your progress against your financial goal planner and checklist. Are you both on track to meet your financial goals?
If not, you might like to explore whether there are any areas in which you can cut costs. Perhaps there’s a way to cut your weekly shopping bill by $50 by buying in bulk?
You‘ll both need to be realistic, and forecast whether or not you’re going to accomplish your goals in the timeframes that you have set. Find a way to get back on track if required – and celebrate if you’re making great progress!
Work as a team
Only you and your partner can make your holiday dream possible. Talk to each other about your upcoming trip, make it a reality and build excitement around it, which will make it easier to stay on track, and may even push you to save a bit extra!
Remember that you both have the same financial goals, so work together as a team by encouraging one and other to accomplish those goals.
Tip: If you have some extra cash left over at the end of your pay period (after setting aside bills and holiday savings), put it towards your holiday! That bit of cash can book a special dinner at your holiday destination as a reward for both of your hard work.
Setting financial goals when saving for a holiday as a couple isn’t easy, but the reward is a better understanding of your personal finances, and - more importantly - a guilt-free holiday!