BusimySaving in a stronger currency: how to do it and keep track
Where the local currency loses value, many people save in dollars or euros. The keys are buying a little every month, recording each purchase at the real rate you paid, and keeping the foreign currency with its own balance instead of converting it back every day.
Ways to hold a stronger currency
| Option | How | Keep in mind |
|---|---|---|
| A foreign-currency bank account | At your bank, if it offers one | Fees and conversion spreads |
| A multi-currency account or card | Fintechs that hold several currencies | Check fees and who regulates them |
| Cash | Exchanging at a bank or exchange office | Theft or loss risk; it doesn't earn |
| Funds or deposits in that currency | Through a bank or broker | They earn something, with their own risks |
Buy a little at a time
Nobody knows next month's rate. Buying part of your savings every month averages the price and avoids having bought everything on the worst day.
How to track it
Buying another currency isn't spending: money moves from one currency to another. Record it as an exchange, with what left and what came in, and keep each currency with its own balance.
Frequently asked questions
- How much should I keep in another currency?
- What you will need soon, in your own currency; long-term savings and the emergency fund, often in a stronger one.