Help! Euro devaluing so losing all my money saved to travel

Rossdoc81

I'm in the middle of saving up for a trip around the world in Sept 2012. Right now I have about €15 000 at this point and plan to hopefully save €5000 more. The problem is the euro keeps devaluing so my saving are just becoming worth less and less in the currencies of the countries I will be travelling in.

I have looked at this Lloyds TSB bank account which lets you set up three different accounts in three different currencies:

http://www.lloydstsb-offshore.com/offshore-savings/

Would it be wise to spread my savings across these, or is there any other way to invest it in something that has actual worth that will not devalue. I am not looking to make money, just trying to keep my savings worth as much as possible in currencies outside the euro.

I will be travelling through SE Asia, Oz, Pacific Islands, and the US.
Thanks for any advice because I just feel helpless right now.

shangri la

Sure its a good idea. You have no interest in speculation so divide your money into the relevent currencies according to your budget.

I will be doing the SE Asia and Oz thing myself from June.

20k for 12 months when you include Oz and the US would be on the lower end so budget well and have the time of your life.

Rossdoc81

Thanks to everyone for all the advice so far. Its helped reassure me over what I should do. Right now I'm thinking of the following:

Keep €2000 in my Irish bank account.

Put €5000 into A Llyods TSB offshore sterling account

Put €5000 into A Llyods TSB offshore US Dollar account

Buy €3000 worth of gold.

What do you think of this setup?
Also can anyone recommend a good website that allows you to easily trade in gold offering good fees and rates.

Thanks again
Ross

OfflerCrocGod

This is a joke, right?

EURUSD - 1YR - (-3%)
EURGBP - 1YR - (-3%)

Interest rates where (misguidedly) higher in the Eurozone too. So the interest return should have been higher too, especially with the Irish banks craying out for cash.

You'd swear that you're dealing with the Indian Rupe EURINR (+14%)!

Hopefully the EURUSD will hit 1.20 later in the year and give some needed help to the Eurozone but I wouldn't be rushing to change EUR into GBP if I was traveling to AUD land. I mean have you seen a 5 YR chart of GBPAUD? It goes one way and GBP is not winning.

Also EURAUD - 1YR - (-4.5%).

If you can't handle a 4% change against you over a year you may want to rethink this trip...

Rossdoc81

All I know is:

June 2011: €1 = $1.44
Jan 2012: €1 = $1.27

I plan on spending two months travelling through California so all I know is my saving are becoming worth less and less.

To Offlercrocgod:
Bit of a bitter bastard are we? I asked for some advice, not a history lesson on currencies from a clown behind a computer screen. I really like all the capital letters and percentages, you are so amazing. You should get a girlfriend, you'll find them outside.
Give some advice or piss off. You are a twat.

Thanks to everyone who contributed positively.
Ross

books4sale

^^^^^^^^:D Well said man, so many numpties on here that try blind everyone when figures. FFS What happened to plain english?

Good luck with the trip.

OfflerCrocGod

You come here for advice on figures and then when someone gives you some advise with figures in it you cry? Also currencies are usually capital letters for me, just the way I see them all day long. Didn't even notice that habit, I'll stop it as it seems to come across wrong!

Jan 2011: €1 = $1.29
June 2011: €1 = $1.44

Currencies go up and down, it's what they do. I'd still suggest against changing money into gbp if you want to go Australia or into anything like gold. You pay for all these transactions and if you add up the cost of the transactions you just end up paying more then you gained from hedging your position, these transactions are not frictionless. Over a year the currency has changed about 4% compared to major currencies, all you need is a 4% spread and you've lost all your hedging. I know, more figures, it's terrible.

shangri la

Capitals are used when the currencies are abbreviated.

He is giving a good guide.

Europe has a double dip recession in her this year, there are too many things on the edge and it only takes one to hit your savings.

an alternative would simply buy canadian dollars. Thats as safe as you will find for the next 9 months imo.

Arciphel

Rossdoc81 wrote: »

To Offlercrocgod:
Bit of a bitter bastard are we? I asked for some advice, not a history lesson on currencies from a clown behind a computer screen. I really like all the capital letters and percentages, you are so amazing. You should get a girlfriend, you'll find them outside.
Give some advice or piss off. You are a twat.

Thanks to everyone who contributed positively.
Ross

When you ask for advice don't get mad at the person who takes time to respond because it's not what you want to hear. Hopefully when you go on your travels you might mature a bit and learn some much-needed manners.

jor el

Rossdoc81 wrote: »

To Offlercrocgod:
Bit of a bitter bastard are we? I asked for some advice, not a history lesson on currencies from a clown behind a computer screen. I really like all the capital letters and percentages, you are so amazing. You should get a girlfriend, you'll find them outside.
Give some advice or piss off. You are a twat.

You deserve neither the advice nor the time of those that gave it to you. You're exactly the kind of poster that this site can do without. Go abuse yourself for a while.