Jul 262014
 

If you ever want to feel rich just head over to globalrichlist.com to find out where you are on the spectrum of wealth. For example when I punched in my income I found out that I am in the top 1% of all earners in the world 🙂 My income is so high I can afford to pay the annual salaries of 10 doctors in Azerbaijan, a small country between Eastern Europe and Western Asia. All you need is to earn more than $32,000 USD to be in the top 1% as well.

In terms of wealth I input $300,000 CAD as my total net worth and it turns out I’m in the top 5% 😀

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To be in the top 1% you’ll need a net worth of $830,000 CAD or $770,000 USD. But for now I am already very pleased being at 4.61%. If I take just 1% of my current wealth I could feed a family of 4 in Ethiopia for 3 years 😯  My personal wealth is equal to the combined wealth of 231 people in Afghanistan. What a financially empowering realization!

I think the moral we can take away from this relative wealth exercise is don’t work in Azerbaijan if you’re a doctor.

It’s possible to feel financially inferior after getting used to living in a first world country. Sometimes it’s nice to be reminded that making even just $30,000 a year and having a $50,000 net worth would already put someone in a very favorable financial position.

Other than using that website to compare our wealth with others for fun, we can also use it as a motivational tool. Find out how rich you are today in terms of both income and wealth. Write down your results, or take a screenshot and email it to yourself. Then go back to the site next year to input your new income and net worth to find out how your position has changed. You should be moving up the ranks every year. If not, find out what’s preventing you from getting ahead. In a global competitive world if we don’t improve, but others do, then we will get left behind. For my own goal, by this time next year I hope to be in the top 4% of the richest people in the world by wealth 🙂

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Random Useless Fact:

If plastic is made from oil, and oil is made from the hydrocarbons of decomposed, prehistoric plants and animals, then that means plastic toy dinosaurs are partly made from real dinosaurs.

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18 Comments on "Relative Wealth"

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Finance Journey
Guest

Great site Liquid,thank you for sharing.

I just checked my status, and I am at 15.30% richest people in the world.I am not sure how accurate the information is, but really interesting to see our progress.

Cheers,

David
Guest
David

Have you read Capital in 21C yet? Given the tone of some of your posts, I think you would find it interesting. I think it would also give you more of a critical eye with things like the “Global Rich List.”

Based on your results I suspect this website is comparing wealth and income on an FX basis and not purchasing power parity. If they created their distributions using the more proper purchasing power parity, you probably wouldn’t be so rich in the global distribution. In other words, in order to be as rich as that website is saying you are, you would actually have to live and consume in Afghanastan, etc. and not in expensive (relative) North America.

Paul N
Guest
Paul N

That calculator is simply a “guilt generating” tool to try to make you feel some imagined guilt that you working your butt off and becoming successful requires you to redistribute that to a charity. It’s not realistic in the least. Would a family making 80k be considered a 1%er? Of course not.

John C @ Action Economics
Guest

I think it’s quite an interesting tool, I think it really helps to keep a perspective of how we measure wealth. It is easy to see people close to us making more money and feel a bit jealous, but we seem to not notice how much better off we are than other people and then ourselves 2 years ago, 5 years ago, 10 years ago. BTW I LOVE the random dinosaur fact!

Will Lipovsky
Guest

Sometimes… when I’m feeling down… I go to this list. Then I feel happy again.

For serious. Everyone reading this blog right now is so well off.

PC
Guest
PC

We as a general society love comparisons. Everyone is always envious to the one who has it better. It’s human nature to always want more. But I am grateful for what I have build up. I may be part of the top richness percentile in the world, but in the greater Vancouver area, I’m viewed as lower middle class.

Phil
Guest

Yeah, it says we’re doing well… but we knew that ;). Live on less than you have coming in throughout your life, and retire when your investments provide more than you are spending to live comfortably… KISS baby 😉 – Cheers

Anne @ Money Propeller
Guest

I think you definitely got the moral right.
Weird thing about Azerbaijan – there are a bunch of expats there working in oil (BP has a bunch of operations there)… so like many poor nations, they have INSANE wealth disparity.

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