Author Topic: Global bottom 90% Net worth  (Read 4902 times)

deborah

  • Senior Mustachian
  • ********
  • Posts: 15963
  • Age: 14
  • Location: Australia or another awesome area
Global bottom 90% Net worth
« on: August 01, 2015, 06:33:15 PM »
Today ForuMMM wrote:

You need to just look at your own life and decide where to take it. Get inspiration from others here if that's helpful. But you're probably in the global top 50% (or maybe even top 90%) if you have a positive NW. So it's all relative.
Some of us have a negative net worth. How far down do you need to be to be in the bottom 10% or 5% of net worth? Do all the people with this level of debt live in developed countries (because poor people in developing countries cannot get into as much debt as people in developed countries can)?

firewalker

  • Bristles
  • ***
  • Posts: 306
Re: Global bottom 90% Net worth
« Reply #1 on: August 01, 2015, 06:46:02 PM »
I remember reading that, if you have any money at all that you do not need to spend on food today, you are in the top ten percent of the world.

wordnerd

  • Handlebar Stache
  • *****
  • Posts: 1156
Re: Global bottom 90% Net worth
« Reply #2 on: August 01, 2015, 07:00:54 PM »
I can't immediately anything that directly answers the question of debt across nations, but a couple of interesting tidbits from https://publications.credit-suisse.com/tasks/render/file/?fileID=5521F296-D460-2B88-081889DB12817E02

Quote
To be among the wealthiest half of the world in mid-2014, an adult needs only USD 3,650 in assets, once debts have been subtracted. However, a person needs at least USD 77,000 to belong to the top 10% of global wealth holders and USD 798,000 to be a member of the top 1%.

Quote
On the liabilities side of the household balance sheet, average debt rose by 81% between 2000 and 2007, and then leveled out. It now amounts to USD 9,260 per adult. Expressed as a proportion of household net worth, debt has moved in a narrow range, rising from 16.1% in 2000 to 19.8% in 2008, and then falling every year. The current proportion is 16.5%, the lowest level since 2001. However, it should be noted that debt levels and trends differ widely across countries. This century, household debt has grown particularly rapidly in transition countries, and more recently in emerging market economies.

forummm

  • Walrus Stache
  • *******
  • Posts: 7374
  • Senior Mustachian
Re: Global bottom 90% Net worth
« Reply #3 on: August 01, 2015, 07:41:35 PM »
According to http://www.globalrichlist.com/wealth NW of $500 (the lowest it would accept) puts you at about 24% and of $1000 at 31%. You need $85k to be top 10%, 800k to be top 1%, and $4M to be top 0.1%.

obstinate

  • Handlebar Stache
  • *****
  • Posts: 1147
Re: Global bottom 90% Net worth
« Reply #4 on: August 01, 2015, 11:26:49 PM »
I kinda doubt that it's accurate, considering there is little personal credit available to much of the world.

Unless he was speaking in more general terms -- adding in intangibles like, "you live in the United States" (which is a component of your wealth) or personal capital like education.

Albert

  • Handlebar Stache
  • *****
  • Posts: 1244
  • Location: Switzerland
Re: Global bottom 90% Net worth
« Reply #5 on: August 02, 2015, 01:20:29 AM »
Global top 10% is fairly well off even by developed world standards, but it falls off pretty quickly after that.

BTDretire

  • Magnum Stache
  • ******
  • Posts: 3074
Re: Global bottom 90% Net worth
« Reply #6 on: August 02, 2015, 08:04:41 AM »
Global top 10% is fairly well off even by developed world standards, but it falls off pretty quickly after that.

  I'm more interested in where you rank in the US scale.
 If you are at zero no money no debt, you are ahead of 13% of the US pop.
If you have a $1M you are in the top 90%.
http://dqydj.net/net-worth-in-the-united-states-zooming-in-on-the-top-centiles/

Here are a few networth ranking calculators;
http://www.shnugi.com/networth-percentile-calculator/?min_age=18&max_age=100&networth=1000000
http://www.4cdg.com/cgi-bin/calculators/wealth2.cgi
http://www.ritholtz.com/blog/2014/01/wealthometer-how-does-your-houshold-wealth-compare/
http://www.frugalfringe.com/worthometer-2/

nobodyspecial

  • Handlebar Stache
  • *****
  • Posts: 1464
  • Location: Land above the land of the free
Re: Global bottom 90% Net worth
« Reply #7 on: August 02, 2015, 10:08:55 AM »
Being on minimum wage (or benefits) in a western country with healthcare puts you in the top 10% of the world

http://www.forbes.com/sites/timworstall/2015/01/28/but-stuart-broad-is-right-uk-minimum-wage-does-put-you-in-world-top-10/


Apologies for the forbes ad, the original FT article is behind a paywall

Retired To Win

  • Handlebar Stache
  • *****
  • Posts: 1493
  • Age: 76
  • Location: Virginia
  • making the most of my time and my money
    • Retired To Win
Re: Global bottom 90% Net worth
« Reply #8 on: August 02, 2015, 10:19:17 AM »
I think there's more to it than net worth.  There's the question of how much your money will buy in a particular place.

Let's also bear in mind that when you compare numbers for different countries, you're not comparing apples to apples as far as what the numbers mean in terms of lifestyle level.  A so-called U.S. poverty-level income would be enough to live large in many other countries.

Come to think of it, even in the same country there are going to be great variations from area to area in the lifestyle that a certain income level can provide.  Which is why there are such things as (relative) high cost of living areas and low cost of living areas.

nobodyspecial

  • Handlebar Stache
  • *****
  • Posts: 1464
  • Location: Land above the land of the free
Re: Global bottom 90% Net worth
« Reply #9 on: August 02, 2015, 11:05:54 AM »
The $/day poverty figures are already adapted for purchasing power parity - ignore any news commentators that say "but $1 is a fortune in the 3rd world".

Within a country, especially the USA, average wealth/earnings are much more varied and do have an affect.
Being in the top 0.1% of the world because you bought a house years ago in the right part of SF can still give you a lower standard of living than somebody in rural Alabama with the same income but only 1% of your net worth.





BicycleB

  • Walrus Stache
  • *******
  • Posts: 5263
  • Location: Coolest Neighborhood on Earth, They Say
  • Older than the internet, but not wiser... yet
Re: Global bottom 90% Net worth
« Reply #10 on: August 02, 2015, 03:27:26 PM »
Global top 10% is fairly well off even by developed world standards, but it falls off pretty quickly after that.

  I'm more interested in where you rank in the US scale.
 If you are at zero no money no debt, you are ahead of 13% of the US pop.
If you have a $1M you are in the top 90%.
http://dqydj.net/net-worth-in-the-united-states-zooming-in-on-the-top-centiles/

Here are a few networth ranking calculators;
http://www.shnugi.com/networth-percentile-calculator/?min_age=18&max_age=100&networth=1000000
http://www.4cdg.com/cgi-bin/calculators/wealth2.cgi
http://www.ritholtz.com/blog/2014/01/wealthometer-how-does-your-houshold-wealth-compare/
http://www.frugalfringe.com/worthometer-2/

Thanks for posting these.