Lifestyle vs Exchange Rate

Lifestyle Relationships
1

Peace All

I have been doing some calculations and analysis of living standards. It appears as though there is a major difference in lifestyle as compared to exchange rate.

Here are my conclusions:

Exchange Rates Approx:

£:Rs = 1:100 (UK - PAK)
$:Rs = 1:50 (US - PAK)
AED:Rs = 1:6 (UAE - PAK)

However, I have noticed that:

A person who earns £4,000 per month living in the UK has a standard of living similar to a person who earns Rs 40,000 per month living in Pakistan.

A person who earns $ 6,400 per month living in the US has a standard of living similar to a person who earns Rs 40, 000 per month living in Pakistan.

A person who earns AED 10,000 per month living in the UAE has a standard of living similar to a person who earns Rs 40, 000 per month living in Pakistan.

So living standard factored currency exchange rate becomes:

£1 : Rs 10 (10 times less than the currency exchange)
$1 : Rs 8 (6.25 times less than the currency exchange)
AED 1 : Rs 24 (4 times more than the currency exchange)

Obviously when we travel to another country we become different due to the direct exchange rate and the person who has £100 will have more rupees than a person who has $100 who will have in turn more rupees than a person who has AED 100.

However, AED 100 will go a lot further in Dubai than Rs 100 will go in Pakistan and Rs 100 in Pakistan will go further than $100 in the US and $100 in US will go further than £100 spent in UK.

I thought this was interesting … So next time your auntie says wow he/she is earning “Do-Teen Laak rupey maheeney ke” , we need to let them know that we are living like people who earn “bees tees hazaar rupey maheeney ke” here in the UK.

2

Re: Lifestyle vs Exchange Rate

hmmmmmm
i am not sure what you are getting at :D

although i think u need to not just rely on exchange rates, but cost of living as well.

a pound is not the same between London and Wolverhampton.

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Re: Lifestyle vs Exchange Rate

not true, for 100 dollars, i can fly one way to florida right now, can u fly from karachi to muree for 100 rupees?

for 100 dollars I can get 200 cans of coke, they are 50 cents each at the vending machine. i doubt u get 200 cans of coke for 100 rupees.

whatchu talkin bout homes

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Re: Lifestyle vs Exchange Rate

"""A person who earns £4,000 per month living in the UK has a standard of living similar to a person who earns Rs 40,000 per month living in Pakistan.
A person who earns $ 6,400 per month living in the US has a standard of living similar to a person who earns Rs 40, 000 per month living in Pakistan.
A person who earns AED 10,000 per month living in the UAE has a standard of living similar to a person who earns Rs 40, 000 per month living in Pakistan."""

not true....
In US a person making $6,400/month can have a nice & decent living while in PK, you can't get that standard with Rs.40,000. You need to earn atleast Rs 3-4 Lakhs or more for the similar standard.
And am sure, same is the case with UK & UAE.

Also how about inflation.....

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Re: Lifestyle vs Exchange Rate

What you are saying might have been true 5-10 years ago but not anymore.

Things are a LOT MORE EXPENSIVE in Pakistan than other places. Let me tell you of UAE.
The electricity is cheaper, oil is cheaper, cars are cheaper in UAE and food stuff is more or less the same as in big citites of Pakistan. So its cheaper living in UAE than in Pakisatn.

Aaj Kiss Baat Par Gussa Aaya ??????
6

Re: Lifestyle vs Exchange Rate

Umm.. how can you compare RS 100 to $100 US and say RS 100 goes further than $100 US?

BTW, there is no comparison due to cultural difference and expectations. A person making RS 40,000 in Pakistan probably leads a very happy life. So what if he can't buy the latest camera, or get that 80" Plasma TV, or go on annual vacations. But in the US, seems like the more money a person makes, the more debt they get into, and the more stressed life becomes.

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Re: Lifestyle vs Exchange Rate

Very interesting piece of information:)

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Re: Lifestyle vs Exchange Rate

1st of all 1£ equals to 124 rupees .so you got a 24% error margin just right there. lets not start what living standard can a man live in Rs40,000. a person in UK with £6000/month salary can AFFORD to buy a £350000 house. show me a single man in pakistan earning 40000 rupees and still he can afford to buy a 4 Caroor rupee house. :chai:

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Re: Lifestyle vs Exchange Rate

This is called Purchasing Power Parity (PPP), which more or less represents the buying power of people in a country. However, I doubt that your figures are right. In PPP dollars Pakistan's nominal per capita GDP of $900 becomes equivalent o more or less $2700. So you can say that if you earn $6000/month in US, you can maintain the same level of living in Pakistan for $2000
or Rs. 120,000.

Again many things in Pakistan are more expensive than here in US. Look at Petrol (Gasoline), electricity, cars, electronics and many food items.

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Re: Lifestyle vs Exchange Rate

Peace All

Thanks for all your comments and corrections.

When I did my comparisons I was specifically looking at living costs ... i.e. only rent, tax, bills and food. With luxury items such as cars, electronic goods, air travel and purchasing property I agree there are major similarities in costs which become more comparable on an international level.

I think however, you all understand what I was trying to get at.

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Re: Lifestyle vs Exchange Rate

Peace X2

Yeah in London it's a weight in Wolv is a place where you house unruly children! LOL

You are right there are differences within countries too.

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Re: Lifestyle vs Exchange Rate

Peace initiator

Please tell me more about PPP (Not Pakistan People's Party LOL ) ... link so I can learn about it. JAK

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Re: Lifestyle vs Exchange Rate

Peace Kamran-Khan

Yes may be you are right about the exchange rate, I was only giving approx figures, please check post. Also I thought I said 4000 GBP not 6000 GBP and also I disagree a person who earns £6000 per month can AFFORD to buy a £350,000 house, but he afford the mortgage of that house.

Also the final point is that a four caror rupee house will be a mansion in the UK (if you were to lift that house up and place it in UK) it will be worth well over £2 million pounds in the UK in some areas. The houses in most areas in Pakistan where people who earn about Rs 40, 000 rupees per month are similar to the ‘space, feel nature’ of houses that most suburban UK dwellers live in which are worth may be £250, 000 but in Pakistan they will be around 25 laak rupees. I may be wrong I did have a limited basis.

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Re: Lifestyle vs Exchange Rate

Peace All

I need to make a correction to my original post ...

"However, AED 100 will go a lot further in Dubai than Rs 100 will go in Pakistan and Rs 100 in Pakistan will go further than $100 in the US and $100 in US will go further than £100 spent in UK."

This should be:

AED 100 in UAE is like Rs 2,400 in Pak, $100 in US is like Rs 800 in Pak and £100 in UK is like Rs 10, 000 in Pak.

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Re: Lifestyle vs Exchange Rate

Peace Iconoclast

I am saying exactly that! But Pakistan is cheaper than US which is cheaper than UK.

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Re: Lifestyle vs Exchange Rate

40000 Rs living standard is not comparable to 4000 £ in UK at all. for 40000 rupees how can you afford a house in Pak or renting it? food is expensive comparitively in Pakistan when compared to even UK, in UK prices are taxable only if they are not edible or e.g, there is no VAT on bread, milk, any food, baby food & clothing. so the neccessities are cheaper compared to Pakistan, food prices are stable since I came here since about 9 years. one cant say same for Pakistan.

its grossly miscalculated for £4000 (which way above than the averge pay in UK - which i guess around £1500) one can have very decent life and still save half of the pay easily. for 2000 you can pay rent or mortgage and spare 1000 pounds for shopping etc every month and can still save 1500-2000 pounds.

40000 rs - 2000 rupees per day is very nominal spending in Pak for a household 60000 plus all the bills and rent if applicable i dont think it doable in 40000, similar standard to uk for 4K one should atleast earn 250K PKR

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Re: Lifestyle vs Exchange Rate

excellent analysis and comparison as well as following query, Psyah!

one thing to add, single person household is a lot different, depending on attitude towards savings or pro spendsthrift lifestyle, than a family of four or six.

standard income levels, draw from national avgs in many countries, but it also might have a huge component of personal spending and investing habits or trends - some good and some very bad for the earners themselves.

whenever people buy something really expensive, some people calculate the rue price in terms of Pak Ruppee equivalent.
the fluctuational ratios might be so different, but the wants and needs for a luxurious and/or comfortable living standard might be the same for all people, especially, when a new thing becomes popular or has utility for the earner.

living within one's means and saving is the wiser choice.

Best,
Dushwari