Posted by Maneesh Sethi :: April 7, 2009 @ 6:11 amWith the financial crisis looming and unemployment on the rise, everyone is trying to save as much money as they possibly can. Surprisingly, however, there have been a few positive side effects from the crisis. One of these is the strong US dollar. Just 6 months ago, the dollar was extremely weak, which I experienced as I lived in Italy. However, the dollar has gained a lot more power since then.
How strong is strong?
If you are wondering how strong the dollar is today, let me give you some points of reference. When I lived in Italy, until August of 2008, one Euro equaled 1.6 dollars. One British pound was two dollars. A single dollar was worth 1.5 Brazilian reals and 3.1 Argentine pesos. (I mention these currencies because these are the countries I have lived in since 2008.) Additionally, one Canadian dollar was about equal to the American dollar, and one dollar was worth about 10 Mexican pesos.
However, today the numbers are different. Check out the current exchange rates:
| Currency | Value as of 8/1/2008 | Value Today | % Change in Dollar Value |
| Canadian Dollar | 1 USD = 1.02 CAD | 1 USD = 1.28 CAD | 25% Stronger |
| Mexican Peso | 1 USD = 9.94 MXN | 1 USD = 14.88 MXN | 50% Stronger |
| Euro | 1 EUR = 1.56 USD | 1 EUR = 1.29 USD | 22% Stronger |
| British Pound | 1 GBP = 1.97 USD | 1 GBP = 1.39 USD | 39% Stronger |
| Argentine Peso | 1 USD = 3.04 ARS | 1 USD = 3.64 ARS | 20% Stronger |
| Brazilian Real | 1 USD = 1.57 BRL | 1 USD = 2.34 BRL | 49% Stronger |
Check that out. The dollar is stronger by at least 20% in each country, and even 50% stronger in a few.
What does this mean to me?
If you have a steady job and can afford to take a vacation, today is the perfect time. Prices are cheaper. Because no one is traveling right now, countries are offering great discounts. For example, I'm writing this article from Norway, where I bought round trip tickets from NYC for only $400. That's $400 to get to Europe, round trip. Incredible.
Many people are currently becoming unemployed, and I've noticed a lot of people are moving out of their apartments to cheaper locations. Are you about to move to a different apartment because you have no job? Do what I do---move to a different country instead and ride out the storm. I live in Brazil, which is 50% cheaper than it used to be, which means that I live like a king on less than $1,100 a month. That's only $13,000 a year! Try to live on $13,000 a year in New York City!
How can I just get up and move?
If you are interested in moving to another country, to save money or just to see what it's like, keep watching. In a future article, I will discuss how you can take advantage of currency conversions and live extremely cheaply in another country, even if only for a month or so.
Where would you live if you could? Have you ever traveled for an extended period of time?
1 Comment
I lived in Prague, CZ for half a year. The Czech Korun was worth about 1/25th of an American dollar, so I was able to live quite comfortably on a student's budget.
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