How Do You Protect Yourself From Currency Flucuations?

[BrettGC]

As the title says, I need some advice.  The recent drop in value of the AUD against the USD is finally starting to flow through to the PHP, albeit in what appears to be a minor way; down 3-4PHP since the start of the year.  Doesn't sound like much?  Well it's about 10% which is fairly significant by most people's standards especially considering most term deposits here in Aust are only offering about 3.5% - yes I know, this is only just ahead of the CPI in most Western countries at this time, and not the best way to grow your money but for the time being, that's the option for me as I still need a fair bit of liquidity before the move next year.  

 

I'm asking with respect to after my relocation.  I'll be there on the new retired military SRRV eventually(only $1500USD now) but for the first 12 months at least I'll be doing the tourist visa thing as many of you are.  I can own a business with the SRRV but that will be some time down the track if at all.  

 

My income will an Australian military pension plus the rent from a property I own in Sydney; all being Australian based.

 

Any ideas guys/gals?

[frosty (chris)]

As the title says, I need some advice.  The recent drop in value of the AUD against the USD is finally starting to flow through to the PHP, albeit in what appears to be a minor way; down 3-4PHP since the start of the year.  Doesn't sound like much?  Well it's about 10% which is fairly significant by most people's standards especially considering most term deposits here in Aust are only offering about 3.5% - yes I know, this is only just ahead of the CPI in most Western countries at this time, and not the best way to grow your money but for the time being, that's the option for me as I still need a fair bit of liquidity before the move next year.  

 

I'm asking with respect to after my relocation.  I'll be there on the new retired military SRRV eventually(only $1500USD now) but for the first 12 months at least I'll be doing the tourist visa thing as many of you are.  I can own a business with the SRRV but that will be some time down the track if at all.  

 

My income will an Australian military pension plus the rent from a property I own in Sydney; all being Australian based.

 

Any ideas guys/gals?

Hi Brett, when you find a solution, let me no please. I changed some AUS $ for my budget last month and got 40.35 pesos for 1 AUS $, yesterday at the same place 38.60. There not a lot you can do unfortunately, maybe wait until our $ reaches parity (if ever) again and cash a bucket load of AUS $.

   All I do is adjust my lifestyle to suit, a few less beers a week or not going out as much, or start to eat rice and dried fish more often :mocking:  still it's a good life here.

   Anyway on $1500 a month you will be able to live well here, I don't spend that much every month.

Edited October 9, 2014 by frosty (chris)

[stevewool]

With very little investments out there without a risk, all i would say is put what ever money you have in the currency where you live and try not to compare prices in £ or $ or any other currency, just my little way of thinking

[frosty (chris)]

With very little investments out there without a risk, all i would say is put what ever money you have in the currency where you live and try not to compare prices in £ or $ or any other currency, just my little way of thinking

I agree with you Steve about the comparisons but after a life time using one currency it is a bit hard not to do, sometimes your mind does it automatically.

[scott h]

A bit tounge in cheek, and all in my head :1 (103): . But when I calculate in my head the price of something, I use P40 per 1 USD. So I automatically save 3 pesos. If a coke light is P30 = .75 USD but it is really about .69.

 

There is no magic bullet I am afraid. Just hope the western currencies stay strong against the peso for the next 1-15 years. If not, we might all be moving to the Congo.

[OnMyWay]

I use P40 per 1 USD

 

Yeah, same here, I use 40 and I guess I will until it goes to 50!

[John Mogusar]

I use P40 per 1 USD

 

Yeah, same here, I use 40 and I guess I will until it goes to 50!

Ha, I do the same thing.

The only way to "beat" currency fluctuations is to know they are coming. And if we could do that, we'd all be rich in the Forex markets.

My main fear is that the USD (and subsequently other world currencies) will completely collapse. Unfortunately, there's not much to do against that no matter where we live. If that happens, all plans are out the window.

[BrettGC]

I do the 40 thing with the AUD too, now I'm over valuing! Not tooooo long ago the AUD was about $1.05USD, times have changed, again.  I guess I'll keep my ear to the ground once I'm settled there.  And yeah, a fool and his money are easily parted, been there once, won't happen again.  Property if I ever meet someone I can trust to have it in her name seems the obvious option I think.

[fred]

By earning Pesos!

[BrettGC]

By earning Pesos!

 

LOL Fred, that is exactly the point!