Quote:
Originally posted by Jimmer
I spend it when I get it 
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Yup, that's always an option.
I think a little qualification might be in order here, because I'm sensing from some that my meaning isn't quite getting through. So here goes.... Read it all, think about it, and THEN comment.
Not long ago, and for the longest time, the USD value was floating around the $1.55 to $1.58 mark. This last time it hit $1.54, then $1.53.... I moved 99% of my US money over to my Cdn account. Us long-timers had that luxery to do so, and hopefully many of you did the same or similar.
- If you're the type that only makes a certain amount and need to live paycheque to paycheque, then by all means keep exchanging your money as you get it. I would suggest putting aside some for your future though, as I've mentioned in other threads. We webmasters don't really have a company retirement fund so plan ahead if you're doing this full time.
- But newer guys, and for us long-timers from now on must manage our money a little more carefully. Right now this second the US dollar is selling at $1.46 Cdn....so at my bank anyway the buying amount (for them) is $1.44 or so. That's what I would get today at the bank for my US money.
So, if you're the type that is getting some large cheques, you have a choice here. You can keep on exchanging your money over to Cdn as you get it, or at some point, maybe at $1.42, maybe at $1.40.... IF YOU CAN AFFORD IT.... you might want to consider keeping a few grand in your US account as a buffer until things turn around. I've been doing this anyway for a long time up until recently, but I'm about to start again. Then, keep exchanging the rest of your US money as you want to, but leave that buffer amount alone for now. So what if the US dollar goes below $1.40? As I said before, at some point the Canada & US markets are again going to change, and when the US dollar value rises back to the high-40's or so you'll be ready to exchange your buffer amount for a decent price.
It's a risk, but I don't see the harm in taking it. I strongly feel that the exchange rate will decrease some more, then over time it will go back up to a certain level. If it bottoms out at $1.38 and then a year later it's at $1.47, for every $10,000 US you moved over to your Cdn account you'd earn an extra $900 Cdn or so. Not bad in my book. On the other hand, the downside risk is smaller, because if you earned your US money valued at $1.37 to $1.42, and the exchange rate DOESN'T go up...well we have to agree that it's very likely going to go down only so far. If it goes to $1.36 and you are compelled to exchange it at that point your loss is only a few hundred per $10,000 US.
It's a choice that some that can afford it might want to think about. If it's not something you'd be able to afford to do then don't do it, it's really that simple. Exchange your US money as you wish, shaddaap and be happey about it. And good luck to my fellow Canadians, here's hoping that I am right and the rates recover in a year or so... and here's hoping that these other guys are wrong.
[ edited for typos ]