Have you made it into the Top 1% of the world?

Have you made it into the Top 1% of the world?

Dominic Bareham 11.05.2017

On Friday I received an email asking this very question, and immediately thought, no chance..! However, it peaked my interest so I clicked on the link to find out where exactly I do sit…..

What does it take to be in the top 1%

Surprisingly less than you think, the article referred to two categories, either income or wealth, the latter being significantly higher to achieve. 

Income

If you have a net income (post tax) of $50,000 AUD or more then congratulations, you’ve made it into the top 1% of the world. Worryingly it would take the average labourer in Ghana 202 years to earn the same amount as you and your income could pay the monthly salaries of 141 doctors in Azerbaijan.

Wealth

It’s significantly higher to get into the top 1% in the world for wealth. You would need a total wealth of near $1.2million to qualify, this would include everything from equity in your home, investments, savings and all possessions. With the average wealth for Australians sitting at $375,000 USD this means we are well off the pace in the Wealth category. 

How do you Rank?

Want to see where you rank in the world for either your income or wealth then click on the Global Rich List

I couldn’t believe that I sit in the top 1% of the world for income (sadly not Wealth). However it got me thinking, how have I made it there? I drive past a lot of big houses on my way to work and I’m a long way off buying one and I don’t consider myself ‘a top 1%’.

After a bit of research I found out it’s because of the huge inequality between the rich and poor people of the world, and unfortunately there are a huge number of people that fall into the poor category. Oxfam released a report highlighting this large gap titled An Economy for the 99% and produced an Australian edition  with some startling facts;

  • 8 men own the same wealth as poorest ½ of the world
  • Since 2015 the top 1% has owned more wealth than the rest of the world

Whilst I think there are systemic issues that have created this situation you can make a difference. The next time someone asks you to sponsor their swim, donate to someone on the street, get involved in a charity fund raiser, just remember how lucky you are to be in the top 1% of the world and give a little!  

Dominic Bareham's picture
Associate Director | Accounting & Finance
dbareham@morganmckinley.com.au