Making the right choices based on long-term planning rather than short-term thinking is the best way to manage unforeseen events. Although we would like to think that the status quo will never change, in reality such an attitude could be a recipe for financial disaster.
One of the key components to success is proper asset allocation. Creating income from your assets means accepting the fact that the only constant is change. As an expat, the assets you build over a lifetime need to sustain you through your golden years. We covered this topic last week and those who have responded largely agreed that they make assumptions based on recent history and expectations about the near-term future. Many do this with the knowledge that their theories and assumptions are likely incorrect. This often leads to disasters and necessary, but undesired, major life changes at some point in the future.
There were some long-term expats who agreed that exchange rates for the Thai baht against other currencies have not yet reached their highs of the mid-1990s. If you've experienced situations where you feel you have benefited from the differences in exchange rates, good for you. However, those who are complaining that they are "losing" should perhaps look farther backward than they have been doing.
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