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When I took at look at the data I was a bit surprised. We hear a lot about the US being the richest country in the world, but the data was a shock.
Using a global measure, it’s not hard to be wealthy.
These figures come from global income distribution analyses and calculators using World Bank and UN data.
Net worth
Based on the latest global income and wealth distribution data, the approximate cutoffs for the 50th, 75th, and 90th percentiles are:
50th percentile (median global income): ≈ $3,000–$4,000 per year (PPP‑adjusted).• Half the world lives on less than this.
75th percentile: ≈ $15,000–$20,000 per year.• Being above $20k puts you ahead of ~75% of humanity.
90th percentile: ≈ $35,000–$45,000 per year.• Around $40,000 places you in the global top 10%.
A typical U.S. income (~$60k–$70k) is top 5% globally.
Based on the UBS/Credit Suisse Global Wealth Report and global wealth percentile calculators.
50th percentile (median global wealth): ≈ $8,700 net worth.• Half of adults worldwide have less than this.
75th percentile: ≈ $60,000–$100,000 net worth.• Example: $100k ≈ 75th percentile globally.
90th percentile: ≈ $175,000 net worth.• This is the threshold for the global top 10%.
On a US basis $175,000 net worth puts you near the 50th percentile, but there are wide variations by state
As Joey used to say, how you doin?
Nice stats. One question I have is what is the cost of living in locations where someone in the various percentile lives. Maybe $3,000 is a lot there compared to other locations where people are in higher income and wealth brackets?
Yes, that’s a factor, but so is the lifestyle and conveniences that go with it. I could move to the lowest cost state in the US and live like a king, but would I want to?
There is no question that merely being BORN in the United States of America makes you a privileged person, from a global financial perspective.
As has been demonstrated for generations, however, what you do with that privilege determines your “success,” however you define it.
As for me, thank you, Lord!
I also think that we live in a social media generation. No one posts poverty, they only post positives. Richard, your example of those attending experiences such as the World Cup games, the NBA Championships games, also Taylor Swift concert ticket prices, etc are living in a world brainwashed into f.o.m.o. ((fear of missing out).
I believe that most HD readers are financially successful because instead of suffering f.o.m.o. we’ve successfully navigated the difference between instant gratification and delayed gratification.
We enjoy the fruits of our labor… and our savings when we actually can afford it.
I think you are right. Too bad the HD mentality is in the minority
And that’s why I feel the importance of sharing our financial life lessons with the next generation
The notion that “paycheck to paycheck” statistics are a direct contradiction of the US being a wealthy nation is a misunderstanding of what those statistics measure. They are not metrics of net worth; they are metrics of liquidity and cash-flow managementOne can be “wealthy” by global standards—possessing assets like a car, a retirement account, or home equity—while still having zero cash left at the end of the month due to high cost-of-living expenses (housing, childcare, healthcare, and debt service).
Why the “60%–69%” figure is controversial: As the author notes, these figures often come from self-reported surveys. These surveys are sensitive to how respondents define “struggling.” A household making $150,000 that chooses to spend $145,000 on a high-cost mortgage, private school, and luxury travel might report “living paycheck to paycheck,” even though they possess a high net worth. This differs significantly from a household making $30,000 struggling to afford food and rent.
Exactly.
I think that this is a strong reminder of how lucky we are to be born into a wealthy nation like Australia or the US.
If you happen to be born in a nation where extreme poverty is still very commonplace, no matter how hard you work or how careful you are with your money, it will be very difficult to achieve the standard of life many of us in wealthy nations enjoy.
Looks good on paper but why are 60% to 69% of U.S. consumers living paycheck to paycheck. Within this group, around 40% to 45% are managing to pay their bills, while 20% to 25% are consistently struggling to make ends
That in my mind is a fallacy because, first it’s self reported, second there is the non essential spending side as well as income side and third look around at how people spend money – like at the World Cup and basketball championship. Those aren’t one percenters in the stands and there are many other examples.
No doubt living P To P is real for many people, perhaps the lowest 25% or so, but guaranteed not 60 to 69%.
I should modify my comment. Living P to P is always real, just not always necessary and surely not always or mostly associated with low income as generally assumed.