Strong Pound, Weak Dollar, not Great Wen You Earn in Dollars!

in #inleo2 months ago

The income from my main blog makes up a good 40-50% of my income (still, it used to be a higher proportion), and around 2/3rds of that is advertising income which is paid in dollars.

That is then automatically converted into pounds when I get paid from my ad company, hence I haven't really thought about the dollar to pound exchange rate over the last years.

However I recently stumbled across an article in The Week magazine talking about the strength of the pound, and I was already aware of the relatively weak dollar, and this prompted to me to have look at the historic pound to dollar exchange rate over the years.

And there is quite a differnece with around a 15% shift over the past two years!

Screenshot 2024-09-07 at 16.55.39.png

In summary over the last two years I've seen the following changes:

  • In September 2022 $100 would have exchanged to £89

  • In September 2024 (this year) that same $100 would exchange to only £76

Or looked at in terms of $10 000, which is much nearer to my annual ad income that means my income has dropped over two years

  • from £8900 in 2022
  • to £7600 in 2024.

So that's me down £1300 a year or around £100 a month today compared to two years ago.

Now that's not on all of my income, but overall that's around a 5% reduction just due to the exchange rate, which is not great!

No wonder I don't feel as if I'm getting any richer!

What can I do about this...?

I'm not sure if there is anything I can do.... other than suck up the difference?

It doesn't make any sense buying dollars and holding them as I figure I'm better off having any other asset compared to the dollar in the short to medium term.

No, unfortunately I think it's just a matter of sucking this up!

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No wonder I don't feel as if I'm getting any richer!😂😂
That difference is really huge considering the fact that the cost of living has increase over time.

It does make a difference for sure, creep creep!

The dollar is only going to get weaker, immediately exchanging them is the smartest move

Yes I think so, thankfully i have no choice, this is my living expenses!

can't you be paid out in USD and buy bitcoin with it, as a longer term investment for example??

Well I cld but this is my living expenses!

O! Yea in that case your options are limited and you just have to accept, although it sucks 🙁

USD was very strong and actually needs to come down so other countries can get into the mix. Not great for those of us in the US

I'm perpetually glad I'm not a US citizen!

Somedays I don't like it either