Imagine waking up to the sound of gentle waves, sipping coffee on your dock, and spending your days kayaking or fishing. For my wife and me, this isn't just a dream—it’s a goal we’re determined to achieve in the next five years. Here’s the exact financial plan we’re following to make it happen. If you’ve ever dreamed of a vacation home or another big financial milestone, these steps can help you get there too.
The first step in any major financial goal is getting crystal clear on what you’re working toward. For us, it started with reminiscing about summers at my wife’s grandparents' lake house on Smith Mountain Lake in Virginia. From tubing and jumping off the dock to watching the sunset over the mountains, those memories shaped our vision.
Now, we need to decide where our lake house will be. Do we want to return to Smith Mountain Lake for nostalgia, or should we explore a location near a ski resort for year-round fun? Once we narrow down our options, we’ll research price ranges and the additional expenses of owning a second home—like maintenance, property taxes, insurance, and HOA fees. This step helps us set a realistic budget and align our dream with our financial reality.
Next, we need to take a hard look at our current finances. We’ll evaluate our income, savings, and debt to determine if we need to adjust our budget. A key question is whether paying down our primary mortgage faster will free up funds for our lake house savings.
Equally important is ensuring our emergency fund is strong enough to handle unexpected expenses. Without it, an emergency could derail our savings progress. By securing a financial safety net first, we can stay on track toward our goal.
Buying a lake house in five years is ambitious—it requires financial discipline. We’re scrutinizing every expense, asking whether it brings us closer to or farther from our dream. Some common culprits:
The money we save from these adjustments will go straight into our lake house fund.
To keep our lake house savings separate from daily expenses, we’re setting up a dedicated account and automating monthly transfers. Think of this as a modern version of the envelope budgeting system our parents used—only digital. Any financial windfalls like tax refunds, bonuses, or unexpected gifts will go into this fund, giving our savings an extra boost.
We’re considering two main options for storing our lake house funds:
A hybrid approach—keeping part of our savings in a high-yield account for immediate needs and investing the rest—may be our best bet.
Saving for a big goal requires patience and persistence. To stay on track, we’re creating a vision board filled with images of our ideal lake house and the experiences we want to share there. Celebrating small milestones—like hitting savings targets or finding a promising property—will keep us motivated.
When the journey feels long or sacrifices seem tough, we’ll remind ourselves why we’re doing this: picturing our kids learning to wakeboard, family bonfires by the lake, and peaceful mornings watching the sunrise over the water.
Your Turn: Start Working Toward Your Big Goal
Whether your dream is a lake house, a new business, or early retirement, the principles are the same: define your goal, assess your finances, cut unnecessary expenses, create a dedicated savings plan, and stay motivated.
Big goals can feel overwhelming, but breaking them down into actionable steps makes them achievable. If you’re working toward a big financial milestone, I hope our journey provides inspiration and a roadmap to help you reach yours.
.png)
