5 Ways to Survive the Dollar's Dive

As the dollar plummets in value vs. a myriad of foreign currencies, don't be caught by surprise at the ways it could affect your everyday life.

The dollar on Wednesday hit an all-time low against the euro, and has also been sinking against the Canadian dollar and Chinese yuan. It has even reached the point that top Brazilian supermodel Gisele Bundchen no longer wants to be paid in dollars.

If you may think that this has little effect on you, you might be surprised. The world is a lot smaller when it comes to commerce these days, and the weak dollar will likely affect your finances in more ways than you imagine.

Here are a five examples of how the lower dollar may negatively impact your budget and what you can do to mitigate the effects:

1. Higher-Priced Foreign Products

While the lower dollar is helpful for U.S. exporters, since it makes their products less expensive to sell to other countries, all the imports coming to the U.S. become more expensive. That means you'll end up paying higher retail prices for imported goods than you would if the dollar remained strong. This includes basics like food, clothing, raw materials, cars and many other products that you may not even realize are made overseas. The end result is that you will be able to buy less with the money you make.