Seek for the best exchange rates like seeking for gold
Alright, seeking for the best exchange rate as if you were looking for gold might seem a bit exaggerated. Well this actually depends on which kind of person you are. Indeed, if you were living in Switzerland in January 2015, looking for the best exchange rate could have saved you 20% if you had waited for beginning of January 2015 vs end of December 2014 to trigger any payment from Swiss Francs to euros.
The same kind of phenomenon occurred recently with the Brexit. Here again, the impact of the exchange rate can be capital for many people: retired UK citizens living abroad who receive their pensions in pounds, people who have invested abroad with a loan in pounds….
Though these 2 cases seem to be extreme, we can also easily picture how constantly looking for the best exchange rate is important for everyone.
Everyone should constantly look for the best exchange rates
In general, the impact of currency fluctuations is between 1 and 5% each month! This meaning that if you were to transfer dollars to euros, euros to dollars, dollars to Indian roupies… either way, you could save between 1 and 5% of the amount sent. Therefore, it is now easier to picture how everyone is concerned. Take migrants who regularly send small amounts back to their siblings stayed home. If we alleged a family sends 300 € each month back to its family in India, if they save 5% on each transfer, then waiting for the best exchange rate will have saved them 180 € in one year which represents more than half the amount they send each month !
We could also take the example of parents paying for their children tuition fees abroad. If they have to pay for onerous Management/Business schools for example, they even saving “only” 1€ at each transfer will represent a consequent amount of money at the end of the day.
Start using the best exchange rates now!
Following the exchange rates is not sexy at all. Even people working in finance would easily be fed-up of having to check currency evolutions every day. This is why I use and recommend an exchnage rate tool which a friend suggested to me.
Now you can start saving between 1 and 5% each time you want to send money from one currency to another! Enjoy !