Tim Worstall

It is all obvious or trivial except…

 

 

So people do understand money then?

April 26th, 2010 · 11 Comments

We’re often told that people don’t understand quite what average incomes are and so on. However, it seems that people do have a pretty good idea:

THE average Briton would need a home worth £500,000 and a salary of £42,000 before considering themselves “well-off”, a study revealed yesterday.

They would also need two foreign holidays every year and have more than £33,000 in savings and investments to be financially content.

This was a poll of some 3,000 people asking what do you think you need in order to be “well off”?

And the results are quite good really. £42k puts you in hte top 10% of incomes and £500k in housing wealth plus some savings and perhaps a pension as well put’s you in the 8th or so percentile in terms of wealth. (The 9th percentile is £850 k or so).

So what people think they need to be “well off” corresponds quite closely with what the well off actually have.

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Tags: The English

11 responses so far ↓

  • 1 Chris // Apr 26, 2010 at 8:46 am

    “put’s”? And “want’s” in a previous post? Are you planning a career move from rare metals to greengrocery?

  • 2 Kay Tie // Apr 26, 2010 at 10:27 am

    I find the iPhone had a hankering for the grocer’s apostrophe in it’s [sic] autocorrect, as just proved.

  • 3 Kay Tie // Apr 26, 2010 at 10:27 am

    And I meant “has” not “had”. Bloody iPhone.

  • 4 Ian Bennett // Apr 26, 2010 at 12:05 pm

    Ditch the bloody thing and go back to a proper typewriter.

  • 5 Philip Walker // Apr 26, 2010 at 1:49 pm

    Ah, a scorecard! I’ve been looking for one of these.

  • 6 Ed // Apr 26, 2010 at 2:50 pm

    Note that it is rather difficult to buy a £500,000 home on a salary of £42,000.

  • 7 dearieme // Apr 26, 2010 at 2:59 pm

    Ed, the secret is not to buy the home, it is to have bought the home.

  • 8 Ed // Apr 26, 2010 at 3:58 pm

    dearieme, yes, when it was much cheaper, and to benefit from artificially imposed restrictions that prevent the next generation from buying. I think it’s sad that people want to have so much of their wealth in a non-productive asset like their own home and relatively little in more liquid and productive savings and investments.

  • 9 Tony // Apr 27, 2010 at 7:09 am

    And I meant “has” not “had”. Bloody iPhone.

  • 10 Matthew // Apr 27, 2010 at 4:31 pm

    I’m not sure the iphone had* much cachet these days, so you can all drop this cute way of letting us know you have one.

    * blast, I mean has not had, I see the iPad hadn’t* solved the problem.

  • 11 Eric // Apr 28, 2010 at 2:15 am

    Ah, a scorecard! I’ve been looking for one of these.

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