How Far can a Million Take You Today?

A million pounds earned today is not the same as what it used to be a decade ago. The definition of “rich” is constantly changing. In the mid 1990s you could be considered “rich” if you had million pounds. Today, you are not “rich” with million pounds of total worth. You are just “well-off.” You might be able to retire comfortably, but you will not be able to send your kids to college, and you will still have to make plans for your long-term healthcare needs, depending on where you live.

The number of millionaires in the world has risen rapidly in the last decade, partly due to wealth created by 20-somethings who wrote computer programs and apps and started companies that were either bought by bigger ones or went through an IPO. The number of millionaires, and even billionaires, in places like Silicon Valley is just staggering. In the UK alone, the number of people making £1 million or more has doubled in the last 2 years.

Now, the million earned today does not have the same buying power as in the past years. For example, you cannot even buy a modest home in New York City for million dollars. You need at least $2 million for something in an average neighborhood. In developing countries such as India and Brazil the number of millionaires is rising rapidly, but so are prices of everything. Inflation in those countries is running as high as 6-7%.

So, what does a million pound today can get you? Here is an interesting Infographic that depicts that.