Purchasing power parity

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I have found this concept quite interesting. I know it is common sense concept, but if you look at it, you would see that the concept of first world country and third world country dont actually exist.

For example if you live in country like USA , you make $5k a month. You pay $2k in rent(in case big cities), $1k on food, $1k misc expenses, $1k for lets say debts. In the end you end up saving nothing.

Now lets say an example of country like belarus. If you can make $1k a month in belarus. You pay $200 a month in rents, $200 food, $100-200 misc expenses, $100-200 for debts. You can end up saving $300-500 a month, which if we go by PPP concept is worth $1500-2500 in savings.

Looking at this concept, i dont feel like first world countries and third world countries should actually be a thing. If you are in first world country you make more money, but your expenses also increase 5-10x.

Just wanted to share it as i think it is quite interesting concept. Many people understand this and move to countries like thailand, or somewhere in asia to save up a lot of money...
 
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I have found this concept quite interesting. I know it is common sense concept, but if you look at it, you would see that the concept of first world country and third world country dont actually exist.

For example if you live in country like USA , you make $5k a month. You pay $2k in rent(in case big cities), $1k in food, $1k misc expenses, $1k for lets say debts. In the end you end up saving nothing.

Now lets say an example of country like belarus. If you can make $1k a month in belarus. You pay $200 a month in rents, $200 food, $100-200 misc expenses, $100-200 for debts. You can end up saving $300-500 a month, which if we go by PPP concept is worth $1500-2500 in savings.

Looking at this concept, i dont feel like first world countries and third world countries should actually be a thing. If you are in first world country you make more money, but your expenses also increase 5-10x.

Just wanted to share it as i think it is quite interesting concept. Many people understand this and move to countries like thailand, or somewhere in asia to save up a lot of money...
I like the method, just concerned who would spend $1k on food.
 
I like the method, just concerned who would spend $1k on food.

assuming you have a GF or wife and you go out to a restaurant twice a week, it would easily be $1k a month on food in cities like nyc, la.
 
The big difference is the infrastructure & services of a government. A rich country will score a lot better on those than 3rd world countries.
Also political stability & corruption are big factors.

Also what's the method?
 
The big difference is the infrastructure & services of a government. A rich country will score a lot better on those than 3rd world countries.
Also political stability & corruption are big factors.

Also what's the method?

You mean the method to calculate the currency value in different countries? You can search purchasing power parity calculator in google, and you will find the method to calculate that.
 
I don't get why you say in a first world country you'd have debt of 1k$ and in a third world country debt is just 200$ when the price of a car or even real estate (if we ignore extremes like beverly hills and such) is quiet similar, you can have rentals for 500-1000$ in non capital cities.

Obviously in those countries you can get more things for the money in terms of rental or going to restaurants but not much more, one liter of gasoline, milk, a piece of bread, purchasing cars, phones or clothes will be the same price.
 
You mean the method to calculate the currency value in different countries? You can search purchasing power parity calculator in google, and you will find the method to calculate that.
No I mean the money making methof since this the money making forum
 
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