Today’s topic isn’t the most fun — but if you’re living in France on U.S. dollar income while spending euros, it’s a necessary one.
The value of a dollar compared to a euro shifts constantly. Sometimes a dollar buys less than a euro; sometimes it buys more. As of this writing, one U.S. dollar buys about €0.85 — meaning a $100 transfer lands as roughly €84.67 in your French account.
These fluctuations are simply part of the package when you live abroad. Financially, you’re straddling two economies — and it can feel stressful, like every time you transfer money, poof, there’s less of it.
The mental trick that helped us most
Before we moved to France, a friend who had been living in Spain for several years shared a tip that genuinely changed how we think about this.
He and his partner always planned their Spanish budget around spending about 30% less than their U.S. dollar income. As long as the exchange rate stayed within that range, they knew they were fine — and stopped wasting mental energy watching it. They just transferred money when they needed to.
That 30% buffer is VERY conservative, but if you want to be cautious, it’s a reasonable benchmark built on historical exchange-rate swings. Build your life around it, and the fluctuations stop being a source of dread.
“But what if that means we can’t afford France?”
When we share this approach, some people worry it means they can’t afford to live here. Two important thoughts on that.
France is simply more affordable — for many things.
The cost of living here, especially outside Paris, runs dramatically lower in several essential categories. We bought a house in the French countryside with cash, using the proceeds from selling our modest Texas home — something we truly can’t imagine doing in the States. Add lower food, healthcare, and education costs, and even accounting for the exchange rate, our dollars stretch much further here.
Yes, energy and consumer goods tend to cost more in France. But you have some discretion over what you spend on consumer goods — you don’t have that same flexibility with housing, food, or healthcare, all of which have become painfully expensive in the U.S.
Be honest about your stress tolerance.
If currency swings already make you anxious and your budget leaves little room, life abroad can feel genuinely difficult when the rate moves against you. We’re not trying to be dream killers — but it’s far better to recognize that before the move than after it.
Smoothing out the ride: dollar-cost averaging your transfers
One practical way to reduce anxiety is to transfer smaller amounts from USD to euros every month, regardless of where the exchange rate sits that day.
This averages things out over time. Sure, it’s nice to perfectly time the market — but that’s a bit like timing the stock market, difficult to do consistently over time. Dollar-cost averaging usually delivers a reasonable outcome with far less energy spent watching charts.
Two economies, twice the options
Navigating life connected to two economies is always a little tricky. But we try to see it as an asset: we have twice as many options as someone tied to just one. That might be our glass-half-full American personalities showing up — but we wouldn’t trade it.
Baguettes and Butter 4eva, Raina ❤️
