The Dollar vs. the Euro

Earlier this week, I read this article about the current state of the American economy. I found the discussion of the dollar versus the Euro to be fascinating.

First off, I don't think that I knew that the dollar was considered "the leading international currency." Given the recent American domination in many areas, I suppose it makes sense, but I never thought of it as a leading currency. I knew that the dollar was often accepted in other countries, but I assumed that was mostly in tourist areas or in poorer countries. I would never expect the dollar to be dominant in Europe. I suppose the description is more in terms of banking currency, of course, and I can't say that's an area I've ever stopped to ponder.

The article discusses how the Euro may be taking the place of the dollar. Quite shocking to me was the fact that many Manhattan retailers are putting signs in their windows indicating that they accept Euros. This is an indication both that the dollar is losing its dominance and that European tourists are flocking to the U.S. to take advantage of the exchange rate.

I suppose it's good for the economy that foreigners are taking advantage of the exchange rate and coming to the U.S. for vacation. I'm sure that many vacation destinations in the U.S. are struggling because of all the Americans who have decided to scale back this year and have a "staycation" instead, so an influx of foreign visitors will hopefully boost them back to their normal levels.

Unfortunately, it looks like the dollar may have a few more years of struggle ahead of it. Some believe that the dollar is at an unnatural low, others believe that in the 90's, the dollar was overvalued and now things have started to normalize to where they should be. I can't say that I know enough about international monetary policy to make an informed guess. But I do thing the next few years will be interesting.

And hey, if the exchange rates don't improve, maybe this means I'll be able to convince all my friends to take that trip to Yellowstone I've been hoping for, rather than the exotic foreign destination they seem to all crave.

Abundant Life Spending Spree - $25,600
$25,600 will probably buy me a hybrid car. Not that I do a lot of driving as it is. But with gas prices as they are, it seems to make sense. Plus it's just good to do the most green thing possible (even though I hear hybrid cars aren't as green as they seem, what with the methods of disposal available for the batteries).

Christmas already?

This week, I booked my flights for my trip to my parents' house at Christmas. That's right, I booked Christmas tickets in June. Why? I started pricing tickets, just to see what they would cost (around $600), and on a whim, I decided to see what I could get using my American Airlines miles. Surprise, surprise! I could book a flight on the days I wanted and pay only taxes (a whopping $10). Additionally, American Airlines is starting to charge $15 per checked bag, but that's for tickets bought after June 15th, so I beat that as well (though I paid nothing for the flight - $15 for a bag wouldn't break the bank).

If you're planning to travel for the holidays, it doesn't hurt to check out ticket prices now. Airlines are reducing the number of flights, and from what I've been told, the flights are filling up as well. Sure, you might get a discount if you wait and grab something last minute, but personally, I'd rather have a guaranteed seat for my holiday travel. One less thing to stress out about.

I think my biggest travel tip is to pack well. Even with the hassles of checking bags, don't be that person who brings an incredibly large bag onto the plane. You will struggle to find somewhere to put it and you will be "that guy," the person everyone else on the plane is frustrated with. With the additional fees, I'd recommend only checking one bag, and be sure that bag weighs less than 50 pounds (or whatever restriction your airline places on checked bag weight). An easy way to do this is to weigh yourself, then pick up the bag and weigh yourself with the bag. Subtract, and there you go. Also, be sure that you can handle your carry-on bags. You will be carrying them. Heavy bags can just lead to injury.

To save money, bring snacks with you. I make a point of bringing snacks that are a bit of a "treat." It means that I'm less tempted in the airport. I pick up my standard granola bars, but I'll also pack some Peanut M&Ms or some other candy - stuff I could buy at the airport, but stuff I would have to pay airport prices for.

One tip for staying healthy while flying is to make sure you drink enough water. You can choose to bring an empty water bottle to the airport and fill it with water from a water fountain once through security, but you can't guarantee how clean that water fountain is. I know that Brita used to make water bottles with mini-filters inside. I haven't seen these in a few years, but they may still exist. If you can find one, or something similar, then it might be worth it. Otherwise, just be ready to shell out a few bucks for water in the airport. It's annoying, but it's better than getting dehydrated.

Show up to the airport early. It's better to be through security and sitting at the gate an hour before your flight than to be rushing through the airport hoping that your flight doesn't leave without you.

Carry the airline phone number with you. If you're worried about missing a connection, immediately call the airline - don't wait in line to talk to someone. Same goes with a cancelled flight. You'll get help faster by phone and you'll have a better chance of getting on a different flight.

Be patient. Above all, I've learned that just going with the flow makes the whole travel experience more enjoyable. Stressing out about something you can't change won't help anything.

The value of intangibles

It has been a slightly rough week, to put things simply. Earlier this week, I found out that a close family member was told that her cancer had returned, after at least 15 years of remission, and this time, she's not going to beat it. She could have two years, she could have twenty years, no one can say at this point. Right now, she doesn't want things to change. She doesn't want special attention or family hovering. She wants to deal with this with her immediate family, and I can understand that. The more attention that the cancer is given, the more real it becomes. She's fought it before. She knows what she's in for. Of course, there have been major advances in medicine since then, so I suppose anything's possible.

I have to admit, one of the things I did that day was started a budget fund for "last minute travel." Of course, if anything happened and the family needed me, either my sick family member or one of her children who live elsewhere, I would be there in a heartbeat, regardless of what it cost me. But it's never a bad idea to plan for that sort of thing.

Events like this make me realize the value of the intangibles. The things we can't buy no matter how much money we have. The meals shared around my grandmother's table, the vacations we've all taken together, even when we've all gotten on each other's nerves (because that's bound to happen on any sort of family vacation, I think). It makes my personal pride in my budget and my financial management skills seem a little silly.

Sometimes we lose sight of what's important. We're all supposed to take a vacation together this summer. Originally, I thought it would be a successful vacation if we made it through with no large fights, good weather, and not exceeding our budget too much. Now I think it will be a success if the whole family can be there.