How to change money at the money changer?


Holiday session is here around the corner! Hurray!

Excited about your next trip to Japan, you bring your hard earned money from value investing or work to the money changer and you…. paused and stopped….

Money Management

A bunch of numbers stared at you and you wonder whether this money changer is giving you the best rates. You compare the numbers to another money changer but you are not sure what to look at. Feeling that there won’t be much of a difference, you changed your hard earned money and leave. However, you get the feeling that something isn’t quite right?

Does this happen every single year to you when you change your money?

Fortunately, you aren’t alone. I met hundreds of people who struggles at the money changer in their journey with money. Today, we will like to share with you how to change your money at the money changer.

Let’s consider that you want to change Singapore Dollars (base currency) to Japanese Yen.

Step 1: Look at the Japanese Yen section.

Step 2: Look at the “We Sell” section.

Consider that we have Singapore dollars and we are buying Japanese Yen. We want to look for a “shop” that sells Yen. That’s why at the money changer we look at “We Sell” because it is the price that they are willing to sell the Japanese Yen.

Step 3: Find the shop that offers the lowest rate

Consider that you are out shopping, you see 2 shops selling the same book. Shop A sells it at $10 while the shop B sells it at $12. Would you like to pay $10 or $12? Likewise at the money changer, we want the rate to be the lower the better.

General rule of thumb: The lower the better.

There you go. That’s how you exchange your Singapore currency into another currency.

Now what happens if you are holding on to Japanese Yen and want to change it back into Singapore dollars. (Assuming, you are changing money in Singapore)

Step 1: Look at the Japanese Yen section.

Step 2: Look at the “We Buy” section

Consider that we have Japanese Yen dollars and we are buying Singapore Dollar. We want to look for a “shop” wants to buys Singapore Dollars. That’s why at the money changer we look at “We Buy” because it is the price that they are willing to buy the Singapore Dollar.

Step 3: Find the shop that offers the highest rate

Very simply, you want a shop that wants to buy your yen at the highest rate.

General rule of thumb: The higher the better.

 

Happy holiday. May the exchange rates always be in your favor.

 

Bonus: Here is a video showing how exchange rates works.

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