The Economic Recovery Is Actually Costing Me Money
Comments (2) The world economy is a strange animal sometimes. We have just experienced one of the worst – yet on of the quickest – recessions in many decades. I wonder if former treasurer Paul Keating would label this the recession we had to have. He would probably be right too.
Just over 12 months ago the Aussie dollar was trading in the 75-80 US cents range. Nine months ago it was trading in the 65-70 cents range. In fact, it managed to get down to 63 cents at one stage.
During that period, US$630-US$700 would equate to A$1000. Today the exchange rate is over 90 US cents. This means I now have to earn over US$900 to receive that A$1000. So, to all intents and purposes, I am losing money as the economy recovers.
What makes it a little harder to swallow is that as I work a little harder and increase my earnings, my actual take home in Australian dollars is going down. It is an interesting phenomenon and you have to take the good with the bad – ride the hard times and enjoy the good – and work harder and harder.
Has anyone else found that their income is actually dropping because of the economic recovery – even though they are earning more?
photo credit: Unhindered by Talent
