my muse income flow & the USD

[placeshifter]

i actually started the 'live abroad and work from anywhere' thing long before i read tim's book.

it's going on 6 years now and i was very surprised to see that my muse generated $157,000 USD for 2008.

having said that, it looks like my US dollar income flow is doing well precisely at the time the dollar is tanking against currencies like the euro.

one thing this has taught me is that it's not enough to just make money from a single currency when you decide to 'go international.'

it's important to keep an eye on exchange rate risk, do some hedging, and most importantly, diversify into other currencies that can cushion the impact of a devaluing dollar.

so my current goal for 2009 is to diversify and earn some combination of euros, yen, pound, and aussie dollars (as an inflation hedge, since it's a commodity-tracking currency).

[Stallion]

I've also been worried about this same thing. I see the US dollar devaluing over the long term. I'm not even in the same league of money that you are, so it's less of a concern, but it seems like dumping it into other currencies is good. Though, I never know which country is necessarily going to do the best.

[Darren]

Since the US is the engine of the worlds wealth*, I think just about everything is tied to the USD is going to fall in domino effect. I am not sure other monies are safe.

Maybe think about gold, silver and the like...although those are not on sale right now(for a reason).

*I am not being arrogant about the US, if any other nation/group had the bulk of global wealth and was unhealthy, the same could be applied.

[jaywenk]

To establish a plan for fighting the failing US dollar you should visit europac.net. Peter Schiff is a pretty interesting economist and has a whole brokerage operation designed to help diversify assets around the globe from both a currency, hard asset and stock perspective.

I don't know him or have any affiliation with his firm; just really like his simple way of explaining what's going on now and around the world. If you search hime on YouTube there are tons of videos that are worth a watch.

[FreedomFinder]

The crashing dollar is a perfect opportunity to make a lot of bank in the Forex market... Also Jaywenk, you may want to consider the Swiss Franc as a strong currency, and perhaps not just other currencies, but some commodities, such as gold, silver, and platinum. Also, I'd like to see your successful muse, could you link it for us? Thanks.

[Caesar_X]

Just wanted to note for the record that $157,000 is a nice figure for a year in which the economy tanked halfway through.

Nice work!