Question: How Can I Protect My Personal Finances from the Impact of Exchange Rates?
Answer: Since you don’t know whether or how fast the dollar will strengthen or decline, the best way to protect yourself is to be flexible and diversified.
- In your financial portfolio, make sure you have a mix of both domestic and international mutual funds, as well as commodity funds that include oil, real estate and metals. Talk to a financial advisor to help develop a well-diversified portfolio that is within your desired risk and return goals.
- In your career, never count on a life-time job...it could be exported overseas. Frequently assess and upgrade your skills, and keep your resume current. Think of yourself as contract-for-hire, and keep you finger on the hiring marketplace.
- Keep six months of living expenses someplace where you can easily access them. Don't get into too much debt...and if you are in debt, make getting out your number one priority.
Exchange Rates FAQ
- What Are Exchange Rates?
- How Do Exchange Rates Work?
- How Does the Government Regulate Exchange Rates?
- How Do Exchange Rates Affect My Personal Finances?
- How Can I Protect My Personal Finances From the Impact of Exchange Rates?
