Thursday, December 20, 2007

wealth calculation

Here is a scary calculation.

According to the world bank 2003 figures, the bottom 10% of the world earn around $400 a year on average. That is around £200.

Our house is worth around £130,000 - that is the amount of secured debt that we can get. Which represents about 650 years of the yearly income of a person in the bottom 10%. Which is around 10 lifetimes. My life is worth 10 times of the poorest person.

Of that £130,000, we've paid off about £75,000 (more or less), which means we actually have capital worth 375 years or about 5.75 of the life income of the poorest people.



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