How much does it take to be considered rich in Ghana?
One of the greatest challenges in Ghana and many developing nations is that the definition of rich, poor and middle class varies depending on who you ask.
In an effort to help those who are trying to better themselves financially, it can be useful to understand how much money it takes to be considered rich in your country of origin.
While there may be no exact definition of what it means to be middle class or poor, knowing how much money you need to make per month or year can help ensure that you’re making the most of your resources and spending as little as possible while still having the things you need.
The Economic Definition of Rich
In economics, the term ‘rich’ is typically defined as someone who has more than 967 Ghana cedis a month. This is about $70 USD per month. However, that doesn’t tell the whole story of how well off a person might be.
The Logical Way to Define Rich
There are many definitions of what it means to be rich but one of the most accurate is the net worth of a person. It is calculated by adding up all your assets and subtracting all your debts. What this tells you is how much money you have left over, or how much equity you have.
Subsection 1 – For argument sake
If you live on less than 967 Ghana cedis a month, then you are considered poor. But what is the average living wage in Ghana?
If we are going with the Global Living Wage Index as an example, a living wage for one person is 2.77 dollars an hour.
There are also other numbers from the study, but this is just one example of how many hours you need to work per day in order for your family to live comfortably.
Subsection 2 – A Few Examples
The World Bank defines those who live on less than $1.90 as living on the extreme poverty line (extreme poverty is defined as living on less than $1.90 per day, or about $0.93 a month).
Ghana’s median monthly income is 967 cedis ($70), which means that half of the population earns less than this amount and half earns more.
Subsection 3 – How Do You Know If You Are Rich?
Before you can answer this question, you first need to determine what the poverty line is. The poverty line is calculated by multiplying the cost of a basic basket of food and non-food items (called the national poverty line) by three.
So if you multiply 967 cedi x 3, then people living on less than 2901 Ghana cedis ($14 US dollars) are considered below the poverty line.
FAQs
How much money do you need to be considered wealthy?
There is not a single specific amount of money that will make you rich, there are many factors that come into play.
A person can live on less than 967 Ghana cedis a month and still be considered wealthy while the same person living on over 967 Ghana cedis a month could still be considered poor.
The only way to know if you’re meeting the qualifications of what makes someone rich is for them to tell you themselves.
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