Summer holidays have started for people on the other side of the world.
For them, it could be catching a live Euro 2020 match, walking down the streets of Venice, or even sipping a mojito by the beach in the Maldives.
For some of us, we can only dream of a life like that.
This pandemic didn’t just stop families from having a meal outside; it prevented us from having a much-needed getaway.
But as Singapore prepares for life with an endemic Covid-19, our hopes for travelling aren’t as far-fetched as it once was.
And during this period, it might be a good idea to save up for a holiday in the future.
Once the travel gates reopen, you’ll then have the means to travel wherever you want, whenever you want.
Save for your dream holiday today
If you want to plan for a dream holiday, your money can’t “chillax” in a savings account. The measly interest rates can barely fund any vacation plans, no matter how modest it is.
Send your money to work in the stock market instead. It’s more efficient, particularly with dividend-paying shares. It’s almost as if companies are paying you to go on a holiday.
You just need two things for this plan to be successful: Time and a good rate of return.
Start just a few years earlier than your friends, and it can mean thousands of extra dollars for a first-class seat upgrade.
All you need is a simple but disciplined approach towards investing.
Getting a good rate of return
We’re in unusual times for sure.
That’s not to say you can’t find the right stocks to hold for the long term. Stick to the basics and you’ll be fine.
A good “rule” would be to invest in what you know. If you can’t explain how a company makes money in simple English, then you might be taking a risk.
The more you understand a business, the people who run it, the offerings, and its competitors, it’ll be easier to predict your investment performance.
And since you’re a long-term investor, focus on the company’s underlying strengths instead of worrying about the timing of the market.
A quick test is to see if a company has what Warren Buffett calls an economic moat.
That could mean having an irreplaceable brand or dominating the market with cost advantages. Companies with a deep and wide moat typically do well even during recessions.
A couple of solid dividend-paying companies can fund many holidays for you in the next 10 or even 25 years.
Preparing for take-off
Once you have a few gems in your portfolio, all that’s left is to wait for it to take off like a jet plane soaring through the sky.
With some luck, we may be the ones sitting on the plane, experiencing the return of tourism by the end of the year.
Meanwhile, at our flagship service, The Smart Dividend Portfolio, we are continuously improving our portfolio of dividend-paying businesses.
The strategies we use are nothing revolutionary, but are grounded in investing fundamentals and discipline.
And the extra stream of income we get will help us pay the bills and more importantly, fund the expenses for our next holiday.
That can soon be your reality too.
All it takes is a little bit of discipline, courage and the willingness to invest.
SPECIAL FREE REPORT! 10 Growth Stocks To Supercharge Your Portfolio! We cover 3 unstoppable growth trends and the 10 stocks that will ride them in 2021 and beyond! CLICK HERE to download for FREE now!
Don’t forget to follow us on Facebook and Telegram for some of our latest free content!
Disclaimer: Joanna Sng does not own shares in any of the companies mentioned.