Ahh, your client just paid you $500 dollars for your latest project. When you converted them to your local currency, you cry in agony! You discover that you the dollar has devalued. This was much less than you received for a similar project last year. What happened?!

You’ve just been a victim of foreign currency fluctuations. Specifically, your local currency has fared much better than US dollar. In the Philippines, the US dollar last year was going at P51. Now, one dollar is worth only P42. This means that your $500 last year was worth Php 25,500. Today? It’s 21,000. You just lost Php 4,500 right there.

Woe is you?

Not necessarily. Although it is no longer convenient to convert your money to your local currency, these ForEx adjustments leave you with some unique advantages.

Like what?

Think of it this way – an iPod ($149) last year was worth Php 7,599. Today’s it’s only Php 6,258.

Aha! A bright light just popped up, didn’t it?

Yes, the simple fact is, when the US dollar devalues you are able to buy more dollar-based products. You can buy stuff on amazon.com at relatively much cheaper prices. You can get web hosting services, tools, online software and mp3 songs at a much lower local-currency equivalent.

So what do you do when the dollar devalues?

Don’t change it into your local currency.

DO buy dollar-based items – those you couldn’t get before because you thought they were too expensive.

Happy shopping!

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