Travel with Investment – How to Use Value Investing to Fund Your Travel

Are you a travel lover who wishes to explore every part of the world? Do you dream to immerse yourself in the culture and slowly discover the country’s beauty? It’s every traveler’s dream to embark on a journey without time or monetary constraint. But very often, the reality shows otherwise. We find ourselves constantly worry for money and dread to think that our holiday has finally come to an end.  If you’re facing the same problem, you should totally consider building up your second stream of income. In this article, I’ll show you how to travel with investment and how to use value investing to fund your travel.

Hiking with the locals at Vietnam Sapa

Why did we start investing?

Over the past 5 years, I’ve been travelling around the world with my boyfriend Calvin. We’ve been to Japan, India, China, Australia, Taiwan, Vietnam, Indonesia, Philippines and many other countries. As you can see, we travel within Asia most of the time as it’s cheaper and nearer to our home Singapore.

Horse-riding in Australia Darwin

But no matter how cheap it is or how we try to travel within a smart budget, travelling is still a big cost to both of us. Whenever we go for a vacation for 2-3 weeks, we’ll see a sharp drop in our savings.  We’ve thus come to a conclusion that it’s no longer sustainable to travel with just savings. We need to make a second stream of income to fund our travel.

Awesome sunset at Kakadu Australia

Somehow fate brought us to attend an event organised by National Achiever Council back in 2015. It was then we were introduced to the concept of Value Investing. We signed up for the course taught by Value Investing College on the spot. The decision was life changing for us. With the right skills, we are now able to make consistent passive income every month. Most importantly, we can use this extra stream of income to travel.

Below is the account summary between 31 Dec 2016 to 29 Jan 2017. I only show first few days and last few days of our account as I don’t want the summary to take up the whole blog post space. You can see that, in less than one month, we made more than $10,000 USD. The amount is more than our two salaries combined.

You can say that we are lucky. We are lucky indeed, as we won’t be able to achieve such as fantastic result every month. In general, we earn an extra $3000 USD per month. Watch the video below and discover how we do it. 🙂

You can find out more about the workshop here: http://investing-safely.eventbrite.sg

Why choose Value Investing?

  • It offers the LOWEST barrier to entry

There are many ways to build an alternative stream of income, investing in the stock market is just one of them. However, unlike any other kinds of investment, you don’t need a lot of capital to become an investor. Unlike buying a property or starting up your own business, which require a big sum of money to get started, investing in stocks offers the lowest barrier to entry. We started with around $7000 USD.

White Sand Dunes in Vietnam

  • It’s historically PROVEN to make money over a period of time

Stock markets have up and down. Very often, people get so caught up by the market’s short term movement and react immediately and emotionally. As the result, they sell in panic and make a loss. But if you look at the historical graph for S&P 500 below, you’ll realise that the stock prices just keep rising.

The Standard & Poor’s 500 (S&P 500) is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.  It is often used as an leading economic indicator of how well the U.S. economy is doing. So its historical trend pretty represents the movement of overall stock prices.

Although there are major downturns during the economic crisis, the market will pick up within 1-2 years and resume back to its steady growth, and eventually surpassing the last high. So how do we profit from the market movement?

According to the philosophy of Value Investing, we need to invest when everyone is scared. Due to fear in market correction, people will be busy selling and stock prices will plummet, enabling us to buy at a discounted price. On the other hand, we’ll need to get out when everyone is busy buying, which drives the stock to a ridiculous high price. This will generally lead to stock prices to plunge. (Think of the Dot.com bubble back in 2000.) When you buy low sell high, you’ll bound to make a good profit.

  • It’s a SAFE way to make money

Value Investing is not trading. We don’t spend time monitoring the market to decide when to get in and when to get out quickly. Instead, we invest in good companies that have sound fundamentals, competitive advantages and economic moat. Think of it as buying a business. You’ll want to make sure you are looking at a sound business before putting money into it. Most importantly, we want to buy them at a discounted price. If the stock price is below its intrinsic values (the price that it’s actually worth), then we will be guaranteed that we are buying a good business with a larger margin of safety.  With greater safety, we’ll also be able to travel with peace and have fun.

Taiwan Hua Lian

  • There’s a TRACK RECORD of success

There are many great investors out there who have been practicing Value Investing and making a huge fortune. The most famous value investor in our era is definitely Warren Buffett. By doing value investing, he built his wealth from only $6000 to $73 billion today. Other than Warren Buffett, there are also Joel Greenblatt, Seth Klarman, and many other super successful value investors..

I hope this article has opened your mind and make you see the opportunities that Value Investing can give you. With the right skills and mindset, you’ll be able to learn how to use Value Investing to fund your travel. Nobody wants to worry for money and everyone deserves to travel, to enjoy and to broaden his/her perspective. And you can achieve so by learning how to invest wisely, just like what Calvin and I did.

Want to find out more?

If you are keen to learn about Value Investing but don’t know where to get started, there’s an upcoming FREE workshop Financial Joy Week (11 Mar 2017) organised by Value Investing College (VIC), where Calvin and I personally learnt from.

During the workshop, Sean Seah, the veteran  investor cum the founder of VIC will share with you the following:

1. Learn about the 4G financial skills required to be wealthy.

2. How to enter the stock market for income and for growth.

3. Ways to craft strategies to enter and exit the market.

4. Inbuilding your investment into a financial freedom portfolio

What’s more, you’ll also get to play games while learning useful knowledge. Trust me, it’s going to be fun and rewarding! The workshop is limited to the first 60 sign-ups only, so if you are in Singapore during that week, grab your seat NOW!

You can find out more about the workshop here: http://investing-safely.eventbrite.sg

Last but not least, Calvin and I will be there too on that day. We want to find out how many of you attend the workshop with the help of my blog, so please indicate “GoGo Chloe” under “Referal Name”.

We look forward to seeing you there!

 

  • Like Indrani, I’ve never thought about investing as a way to fund my travels – it makes sense, though! You’ve been to some amazing places (I’m going to Taiwan and Singapore next month!), and I’m sure it will allow you to discover so many more in the future!

    • Glad that you are coming to my hometown Singapore! Let me know if you need any advice where to go. 🙂

  • It’s always interesting to learn about new methods of saving for travel. We definitely need to look into other ways to fund our adventures! Wouldn’t it be nice if traveling were free instead!?

    • Travel for free and without any budget constraint is definitely many people’s dream! Glad that it inspires you 🙂

  • Travel does require a separate budget and is a costly venture, and especially if you are not into backpacking and prefer luxury travel, To fund our travels we constantly need to juggle our finances and look at multiple streams of income. This definitely is a way to get additional income that can be invested in our travels.

    • I totally agree with you. Multiple streams of income is so important. We can’t bet everything into one basket. 🙂

  • Thanks for sharing the financials and I think it’s always about making more money to chase everyone’s dream… buy a car, a house, travel… and more! So Best of luck and fun travels everyone. @ knycx.journeying

    • Thank you and I’m glad you find it helpful! All the best to you too!

  • Never known this aspect of making money for travel. An eye opener really!
    I will begin practicing your methods.

    • Yes Value Investing is truly amazing. I’m glad it inspires you 🙂