In the words of the genius with his uncombed hair and tongue, everything is relative. The speed of light, gravity and the laws of physics in space mean that different forces act differently in different places, according to Albert Einstein’s famous theory of relativity. Making more money after his life than during her lifetime, Einstein’s very existence proves his theory. By taking Einstein’s teachings and applying them to money rather than space, you will find that it tracks – how much wealth you have depends on where you are and what time you are alive. That’s all there is to say, it’s all relative. Knight Frank, real estate agency and advisory group, releases an annual report on the 1% worldwide. Looking at billionaires in more than 200 regions and 100 cities, Knight Frank also measured current attitudes toward wealth by surveying 500 wealth advisors and bankers as well as 500 ultra-high-net-worth individuals around the world. It turns out that making 1% has its own theory of relativity.
Monaco, the small country where Grace Kelly became a princess, is probably the hardest place to be rich. (Come on, it’s Monaco.) It takes $12.4 million to count as part of the 1% in land known to luxury real estate agency Knight Frank, which is included in its annual wealth report.
At a time of rampant financial anxiety, many in the United States believe that the standard of comfort or safety while living in the country is too high. People generally believe that you need an average net worth of $774,000 to be financially comfortable and $2.2 million to be wealthy, according to Charles Schwab’s 2022 survey of 1,000 Americans. Both numbers are higher than what respondents said it would take to be rich in 2021 ($624,000 and $1.9 million, respectively). Some of it is based on uncertainty, with wealthy individuals reportedly feeling some anxiety about their status, but it also has to do with the current cost of a comfortable retirement which is slowly creeping up to over $1 million.
However, the pandemic allowed record wealth to be built for the middle class in the United States, but while their golden age has faded, the wealthy have already hit it big. Billionaire wealth now represents an enormous amount of prosperity in the world, equivalent to 13.9% of global GDP, per Oxfam. And it takes 1% more to catch up during an era when CEOs are compensated at a greater rate than anyone else, with an average salary of $27.8 million annually.
Wealth inequality is particularly high in the United States, even though the growing number of the super-rich around the world accounts for most of the world’s wealth. Over the past two years, a new billionaire has been created every 30 hours, according to Oxfam. The charitable organization found that since 2020, the richest 1% have acquired twice as much wealth as the rest of the world.
Here’s a breakdown of what it takes to be in the 1% dodge for the following 10 countries.
- Monaco: $12.4 million
- Switzerland: $6.6 million
- Australia: $5.5 million
- New Zealand: $5.2 million
- United States: $5.1 million
- Ireland: $4.3 million
- Singapore: $3.5 million
- France: $3.5 million
- Hong Kong Special Administrative Region: $3.4 million
- United Kingdom: $3.3 million
“Now the bottom half of the world’s population will have to toil for an estimated 112 years to earn what the top 1% are now earning in just over 12 months,” he wrote. Wealth Christian Hetzner. While millionaires enjoy the rest of their days building a nest, the rest of us can dream about Monaco. It’s all connected.