Living Off 6 Figures Around the World

PARIS - OCT 29: The Moulin Rouge by night, on October 29, 2010 i

Ever wonder how far a six figure income would go if you lived in certain places in the world? The Business Insider took some time to tally the results. The following information is what they discovered.

A six-figure income in US dollars means one thing to New Yorkers and another thing to Muscovites. For instance, a resident in Moscow pays 13% of their salary to the government. However, the cost-of-living is also around 55% cheaper. That translates to a take-home pay of $130,000 annually for the Muscovite and about $62,000 for the Big Apple resident.

Zürich, Switzerland

If you live in Zürich, Switzerland and, say, work as a junior executive at Zurich Financial Services, you will turn an income of 100,000 USD into $12,000 USD in this part of the world. That figure is based on paying 30% of your salary in to the government in taxes and a cost-of-living rate that is 83% higher than the US. However, you would be able to afford real estate in the form of a 2.5-bedroom apartment featuring 482 square feet of living space in an exclusive community.

Berlin, Germany

If you earn $100,000 in US dollars in Berlin, the government would claim about 46% for taxes. The cost of living in this part of the world is 29% higher than it is in the US. You’d bring home about $38,000 USD. The real estate you could a 1,300 square foot 2-bedroom apartment in the suburb of Glienicke Nordbahn.

Paris, France

If you choose to make $100,000 USD in Paris, the government would take 39% of your salary in taxes. The cost of living is almost 30% higher than it is in the US. Post-tax adjusted income hovers around $43,000 USD. With this income, you can afford a 221 square foot studio on the 6th floor of an apartment building. Featuring a wood-burning fireplace, the home is located in the heart of the city.

Sydney, Australia

In Sydney, your $100,000 USD salary, would provide the government with 40% in taxes. The cost of living is about 11% higher than it is in the US. The post-tax adjusted income is about $53,000 USD. With that amount of money, you can afford a 270 square foot studio, located in the city’s central business district.

Toronto, Canada

A $100,000 USD salary in Toronto would supply the government with 38% in taxes. The cost of living in this Canadian city is about 13% higher than it is in the US. You would bring home about $54,000 USD. With this income, you can afford a furnished one-bedroom apartment with maid service that is approximately 550 square feet in size. The apartment is located in the city’s financial district.

Tel Aviv, Israel

With a $100,000 USD salary in Tel Aviv, you would pay 43% of your income in taxes. The cost of living is just over 4% higher than in the US. Therefore, the post-adjusted income is about $55,000 USD. With this amount of money, you can afford to live in a 4-bedroom hideaway in the downtown section of Tel Aviv. The real estate includes a landscaped yard and fireplace.


Financial Trade Body Small Business Lenders as Bad as Payday Loans

Business Lender

Since the economic collapse, consumers have been complaining about how the payday loan industry has taken advantage of cash-strapped individuals. Critics often argue that payday loan businesses often force customers to enter into a never ending spiral of debt with exorbitant interest rates, excessive fees and constant renewal of loans. This, they say, is predatory.

Well, it’s not just consumers who may be facing that same challenge in the future. Small businesses could be on their way to embark upon that astronomical and tragic debt trap.

According to warnings from a financial trade body in the United Kingdom, small businesses lenders are trying to enter the marketplace. When startups are trying to look for funding and expand their operations, they become desperate for loans, and they can then turn to unscrupulous lenders. Without regulations, small businesses will lack the protections from these lending firms.

The National Association of Commercial Finance Brokers (NACFB) says that it has rejected 40 new lenders since 2014. These lenders have been attempting to place their nationwide sales team and brokers on the payroll of many small businesses when it comes to finances. They have previously succeeded in doing so because between 2011 and 2013, only five lenders were rejected.

So what is exactly wrong with these small business lenders? They maintain a similar business model as payday loan establishments such as Landmark Cash: they charge very high interest rates and exorbitant fees. The average rate new lenders are charging is about five percent per month.

These small business lenders have also been unwilling to show what their source of capital is, while shielding their track records, the NACFB notes. The organization did not name these firms.
NACFB CEO Adam Tyler explained that many new financial lenders are trying to take advantage of small businesses, particularly in today’s economy. Many small businesses are being turned down for funding from their financial institutions so they eventually become very desperate. Even in a low interest rate environment, banks aren’t taking risks.

“Small businesses are doing better because the economy is doing better,” he said. “They are getting more orders and employing more staff and if the banks won’t help them, they’ve got to get the money from somewhere.”

He added: “They are as bad as the payday lenders in consumer credit.”

The NACFB is concerned because consumers are pretty much protected today from businesses charging usurious rates and fees. However, limited companies are not, which means there would be no reparations or recourse if they are taken advantage of by these unscrupulous firms.

Right now, small businesses are being protected by various trade industry groups. For the most part, trade associations are forbidding these types of lenders from coming into the market. However, NACFB officials warn that small businesses have to check before they start to borrow from the lender just in case they make it through the cracks.

As the Financial Conduct Authority (FCA) continues to clamp down on payday loan stores, only time will tell to determine if the government regulatory body will crack down on small business lenders. If the NACFB is correct, new rules and regulations are urgent.


Younger People Setting the Standard when it comes to Saving Money

young people walking

Younger people in the United States often get a bad rap for getting themselves into debt, being financially unaware, and not saving money or investing in their future such as looking at pension schemes. However, a recent report has suggested that younger people may be far more savvy when it comes to saving money than many people think. In fact, it has been suggested that younger people in America may be setting the standard when it comes to saving compared to those aged thirty and over.

The data comes from a recent Bankrate study, which shows that when it comes to people ages thirty and over only around half of this age group are putting aside at least 5 percent of their income on a yearly basis. However, when it comes to younger people  the rate goes up to one in three, showing that older consumers are not necessarily ahead of the game when it comes to putting money aside.

Learning a lesson from the financial crisis

According to one official who was involved with the survey, one of the reasons behind younger people being savvy when it came to saving money was because the financial crisis in America and around the globe came during their formative years. This had enabled many of them to learn valuable lessons from the financial situation they saw emerging all around them, which they had then carried with them during the years following the crisis.

Not only did the survey show that more younger people were putting aside a decent chunk of their income each year but it showed that close to 30 percent were saving more than 10 percent of their money each year. In fact, the number of people covering all ages who are saving 10 percent or more of their income has increased over the past year according to the data from the report.

An industry official said that it was particularly important for younger people to make sure that they were saving a decent chunk of their income each year due to the unpredictable future that they faced. With concerns over things such as retirement, social security, increased medical costs, employment issues, and longer life spans, younger people would be under more pressure to have money stashed away than many older people. He said that having a financial lifeline when younger could save people a lot of problems in the future.