Extreme Goal Setting: Crafting a 5-Year Travel Plan

Setting big goals can be an exciting and transformative experience. For travel enthusiasts like me, planning a series of adventures over a span of five years can be both motivating and fulfilling. This article will guide you through the process I use in setting and achieving a 5-year travel plan, detailing each step from selecting destinations to calculating monthly savings that have helped us go from someday to what day for our travels.

Year-by-Year Travel Plan

Before we get started, yes, I have a 5-year travel plan that is updated every 3-6 months and it looks like this:

1. 2024: Europe

2. 2025: New Zealand

3. 2026: Europe

4. 2027: Japan

5. 2028: TBD

6. 2029: Maui

Step 1: Select Your Destinations

The first step in your 5-year travel plan is to choose your destinations. For this example, the destinations are:

• 2024: Europe

• 2025: New Zealand

• 2026: Europe

• 2027: Japan

• 2029: Maui

The destination for 2028 remains undecided, allowing flexibility for a new destination or a return to a favourite.

Step 2: Estimate the Cost of Each Trip

To create a realistic budget, research the estimated costs for each trip. Consider expenses such as airfare, accommodation, food, transportation, activities, and miscellaneous costs. After thorough research, you can compile a total estimated cost for each destination.

If it’s too challenging, another option is to estimate a cost per day. Estimating the cost of your desired destinations is critical as this often determines when you might go. For example, we thought about a 4-week trip to the east coast of the USA. However, after estimating the cost of the trip and how much we would need to save each month to achieve the required amount, we picked another destination.

Step 3: Calculate Monthly Savings Goals

Now that you have estimated the total cost for each trip, calculate how much you need to save each month to achieve your goals. Here’s the breakdown:

• 2024: Europe (September)

  • Monthly Savings: $500

• 2025: New Zealand (July)

  • Monthly Savings: $600

• 2026: Europe (September)

  • Monthly Savings: $500

• 2027: Japan (September)

  • Monthly Savings: $400

• 2029: Maui (December)

  • Monthly Savings: $400 (assuming you start saving for this trip in 2027)

Here’s an example: Assuming it’s June 2024, and the goal for 2025 is to travel to New Zealand in July and you’ve estimated it will cost $7,200 for a 9-day holiday. Starting from June 2024 to June 2025 is 12 months, so the calculation is $7,200 divided by 12 months = $600 per month in savings to achieve your goal.

It’s important to consider that some large travel expenses may come up early, such as flights and accommodation, so it’s important to factor these into your plan.

Step 4: Create a Savings Plan

With your monthly savings goals in mind, it’s time to create a savings plan. Consider opening a dedicated savings account for your travel fund to keep your finances organized and separate from your everyday expenses.

Step 5: Review and Adjust

Life is unpredictable, and your travel goals might evolve. Periodically review and adjust your savings plan as needed. If you find a cheaper flight or a more affordable accommodation option, redirect the savings towards another trip or keep it for future travel expenses.

Benefits of This Process

The process of setting up a 5-year travel plan offers several significant benefits:

1. Turning Dreams into Reality: This structured approach shifts the mindset from “someday” to concrete plans, making dream destinations achievable.

2. Focused Savings: Knowing exactly how much you need to save each month helps you stay disciplined and on track.

3. Goal Setting: This process encourages a proactive attitude towards goal setting and financial planning, skills that are beneficial beyond travel planning.

4. Financial Awareness: Regularly saving for specific goals enhances your overall financial awareness and management skills.