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Hank, I work overseas for a US based company. I earn my money based on USD. But I live in the land of the Euro. Is there anything I can do to balance this out? - Janine in Amsterdam
Ugh, I’ve got some fairly bad news for you Janine. It must be bad because every time you buy something in Euros, you take a paycut. The more the dollar drops, and the further the US falls into possible recession, the less your dollar is worth there. I’d say there are a few options to try to hedge your bets. Initially there isn’t much you could do, but you could set yourself up to mitigate some of the loss while you’re there. Here is my list of ideas you could do:
- Ask for a raise. If you’ve been a good employee, and have a strong case for it (don’t say that just because the USD is dropping as your case, it’ll get shot down; use your skills as a reason to ask for a raise) a good employer would see the benefit you bring to the table. What is the worst they can say to you? “No”? Is that so bad? So what if they do, at least you get it on their plate and make them aware.
- Move some of your investments into Euro-based assets. With the dollar where it is now, it might be a good time to further diversify. In a balanced portfolio, you should have some of the funds there now, dump a few more there.
- Get a new job. Who says you can’t job hunt while you’re there? I ALWAYS have my resume out there looking for something new. Who knows, maybe you could apply for a job in the UK that would sponsor your work visa, and then you WOULD be getting paid in Euro.
- Move back to the US. Ask your employer if you can. Many of the US companies allow telecommuting as it is. Tell them you’re trying to stay green, and ask if they’ll support your decision.
- Request to be paid in Euros. Again, it may not work, but you’re putting it on the table for them to shoot down and have the opportunity to reference later.
- Get a second job. It may not be what you’re looking to do now, but neither is having the dollar fall.
- Do some part time work AT work. Many of these options can be done incognito of your current job. It is likely that you’re working for a boss that is in the US anyway; how likely is it that you’ll get caught?
- Tell the US government how to properly manage their money? Run FOR President, change the world, etc, etc… I think there is still time before Barack becomes president…
Hope these ideas helped jog the memory a bit; or at least give you some options. Anyone else in this dilemma?
*note: Photo by: jopemoro
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5 Comments
February 22nd, 2008 at 5:26 am
Dudes:
Hate to be the one to point this out, but the UK doesn’t use the euro. The Brits trade in pounds sterling. Which ironically proves the point more, because the pound has been slaughtering the dollar even more than the euro has been.
February 22nd, 2008 at 7:23 am
@Xander - thanks for pointing that out, I looked through the email again and sure enough Janine is not in the UK, she’s in Amsterdam. (Sorry Janine!!!! Change made!) I swear I knew that, I’ve been to both places and have used both currencies in each place!
Duly noted and fixed!
I was crafting it up a little TOO quick I guess, but yes it definitely drives the point home even more when you consider how well the pound is doing against the dollar. Aren’t we in the same war? Sounds like the British government must be running their financial branch better than here in the US!
February 22nd, 2008 at 7:30 am
I didn’t even notice it until Xander did! I guess I figured that I knew the question and was just looking for the answer!
Thank you Hank for posting the question and Xander for making sure we’ve got the right info - It’s 4:30pm here and I was about to leave works so I thought I’d check the site.
I’ve already done #1 and #5, but the other ones are certainly something I think I ought to look in to. My stay over here isn’t permanent either. I go back to the US in September so I won’t be here forever, but it is just frustrating to be here now and see my money being worth less and less…
But thank you very much for posting my question!
February 22nd, 2008 at 4:39 pm
My wife is currently working in London and getting paid in USD. We just use Capital One CC Card (no fees for use internationally) and use the ATM bi-monthly to get funds needed in the interim. This hedges the rates some because you spread your risk over the time you are there versus if you get all the money at once. Hopefully, Janine is getting reimbursements and some travel costs paid by her firm that should be adjusting or set to Euro-USD exchange. My wife has revisited this every month or so on her London Pound-USD exchange on the reimbursement.
Another option is to wire your funds to a bank account in Amsterdam every paycheck. Another way to hedge it. We thought about opening a checking account in London but decided against it due to the hassle. Maybe your bank has branches there and could help you?
My main recommendation is the Capital one no hassle card. You pay the exchange rate for that specific day and pay no fees to do it. Not so lucky with other CC cards…
Hope that helps or gives you some ideas.
June 21st, 2008 at 8:11 am
I concur on the Capital One CC. I got it specifically before I came to Asia for 2+ years, although some of their other policies and their service hasn’t impressed me (because they are a “conservative lender”). But I keep the card anyway.
My card is a miles card (good for those of us who travel abroad often) which gives you miles for purchases, 1.25 miles for each dollar spent on airfare, and allows you to apply those miles to any airline you want (I believe the policy is to reimburse the flight charged on the card once you’ve spent enough). The sweet part is you can earn miles from the airlines for traveling with them and then earn miles again with the card for the ticket purchase. For me it has allowed flexibility to go with cheaper airlines instead of feeling obligated to one to accumulate miles.
Share your thoughts, leave a comment!