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Steve Jones

Steve Jones Business English
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Temat: Cost of living vs earnings comparative analysis

I don't know why I did this, but I compared Poland and the UK. I worked out rather approximately the following:

As a single person, I order to rent a modest flat in a nice place, buy food, run a car and have a little left over for clothes, in Poland you'd need to be making 3000zl per month net. That's 4200 zl gross.

In the UK to do the same you'd need about 2000 GBP gross.

Therefore, the cost of living exchange rate is 2 zloties to the pound.

I find this useful when considering the relative value and cost of any particular item I wish to buy. For example, I recently bought a pair of jeans discounted from 280 zl to 140. This, on face value, seemed like a good deal. That is until I brought in the cost of living/ earnings analysis which states that the exchange rate is 2 zloties to the pound. So, in comparative terms, the pair of jeans cost me 70 GBP: not a good deal.

It's interesting to use this on more everyday items. Like a pint. Using the traditional exchange rate, 7 zloties for a pint seems a good deal at (4.5 zloties to the pound) 1,55 GBP. However, when using the comparative analysis, that pint costs 3,5 GBP in real terms. Would you think "3.5 for a pint: that's a bargain!" in the UK?

Fags cost 10zl: 5 GBP (more or less what they actually do cost in the UK, a price I've always thought as exorbitant).

And also, would it be useful to use this analysis when considering working abroad? For example, let's say you earn 5000zl gross in Poland. Therefore would it be only worth your while moving to the UK if you could bag a minimum 2,500 GBP gross per month (30,000 GBP per annum)?
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Temat: Cost of living vs earnings comparative analysis

Hi Steve,

It's not an easy task you've undertaken. If you add electrical products to your comparison (TV's, computers, high-end phones, mobile plans) you'll see vast differences in the purchasing power between the zloty and pound. Same goes for holidays, new cars and plane tickets.
Steve Jones:
And also, would it be useful to use this analysis when considering working abroad? For example, let's say you earn 5000zl gross in Poland. Therefore would it be only worth your while moving to the UK if you could bag a minimum 2,500 GBP gross per month (30,000 GBP per annum)?
If you earn 5000zl in Warsaw, you won't be able to afford a house, but food will seem rather inexpensive.

There is more to moving abroad than one can see initially.
The UK has a better government institution system, more attractions, more new-builds, better internet, mobile plans, availability of everything from consoles, operating systems (compare prices of Windows 7 with pre-order of Ł69 compared to no availability of preorder and 770zl and $120 in the US) and many more positive things that are either better organized or cheaper - even before taking the purchasing power of the pound into account.
You do have some crappy food though ;) No wonder Indian and Italian are so popular ;)Michał K. edytował(a) ten post dnia 27.10.09 o godzinie 19:21
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Rafał D.

Rafał D. Head of Production,
Locon Sp. z o.o.

Temat: Cost of living vs earnings comparative analysis

http://en.wikipedia.org/wiki/Purchasing_power_parity
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Temat: Cost of living vs earnings comparative analysis

Also look into the "Big Mac index." Googleoogleable.
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Temat: Cost of living vs earnings comparative analysis

Steve Jones:
I don't know why I did this, but I compared Poland and the UK. I worked out rather approximately the following:

As a single person, I order to rent a modest flat in a nice place, buy food, run a car and have a little left over for clothes, in Poland you'd need to be making 3000zl per month net. That's 4200 zl gross.
Steve,forget about 3K pln net in Warsaw for all the above-mentioned...mission impossible:(
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Rafał D.

Rafał D. Head of Production,
Locon Sp. z o.o.

Temat: Cost of living vs earnings comparative analysis

I think there is some space for optimization in your spendings Agnieszka ;)

And you know what's best Steve? That in US and Euroland you can basically cut-off the currency symbol, take only numbers, and everything fits (ok ok, more or less). From beer to houses.

edit: I mean ofcourse we compare here products produced in the country, not the imported ones.Rafał D. edytował(a) ten post dnia 27.10.09 o godzinie 20:50
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Michal B.

Michal B. stud.

Temat: Cost of living vs earnings comparative analysis

3K nett in Warsaw = you can't live and you can't die.
You can only exist like a vegetable. :)
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Rafał D.

Rafał D. Head of Production,
Locon Sp. z o.o.

Temat: Cost of living vs earnings comparative analysis

Michal B.:
3K nett in Warsaw = you can't live and you can't die.
You can only exist like a vegetable. :)

The problem is you can hear it according to much wider scale of earnings ;) Which basically means that large part of this statements is not true.
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Michal B.

Michal B. stud.

Temat: Cost of living vs earnings comparative analysis

I tried to live on my own for some time. The 'hole' I rented cost 1,500 PLN + the Internet + the electricity bill + a monthly ticket + the telephone bill. You can't do much with about 1K left. Smoking is certainly out of the question and so are many other things.
Obviously I could rent the flat with a dozen friends etc. :)Michal B. edytował(a) ten post dnia 27.10.09 o godzinie 21:01
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Temat: Cost of living vs earnings comparative analysis

Rafal,come to Warsaw and check it out yourself...:)Michal perfectly knows what he's saying...:)
p.s.I bet many of us heard about "decent"apartments in n.y.c....no comment:)
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Rafał D.

Rafał D. Head of Production,
Locon Sp. z o.o.

Temat: Cost of living vs earnings comparative analysis

Anyways, PPP works withing the country too as the average earnings in Warsaw are higher than, for example, in Szczecin :) Meaning, we could do a similar calculation as Steve did in the first post but for cities in Poland and we would probably get to the same conclusion. So it means that if Steve gave some average earning (on which I would agree in case of Szczecin) he could give let's say 4k net for Warsaw and the observation woudl be same.

So generally, everything (well, mostly services to be precise) is more expensive in Warsaw because people earn more (in the nominal meaning) and people earn more because everything is more expensive. Simple, isn't it? ;DRafał D. edytował(a) ten post dnia 27.10.09 o godzinie 21:38
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Magdalena Natalia Wiśniowska

Magdalena Natalia Wiśniowska Recruitment Manager
at Amazon Web
Services

Temat: Cost of living vs earnings comparative analysis

well, i obviously won't tell you how much I earn but I manage to save a little.

i think it's not how much you get but what expenses you have.
for instance:
I don't smoke nor do I drink much and my only addiction is a good coffee. what did I do to avoid the hilarious prices of cafe lattes at coffee heaven?
bought myself an Italian coffee maker - yes, it costs a lot BUT when I do the accounts - it's only ap. 40PLN per month with one of the best grounded coffees for 30PLN for 250 mL, which gives me an espresso cup for a month or two.. or three (depending on my digestive sys problems ;-)).

ok, ok. i do go to coffee shops - but it's cos i save $!!!

apart from that i DON'T buy at shopping malls, the only ones I use are Factory Ursus and Piaseczno-whatever-the-name -
WHY?
b/c they have best brands for rly small money. - YES, it is not "top season" clothes but WHO CARES.

where do I buy all the products from Wedel, Danone, etc.? yes, globalised Carrefour - cos it's cheaper.

the only things I buy at local markets are fruit and vegetables (and fish and eggs) - apart from that the products are all the same whatever place you buy at - but small, local stores are expensive.

c'mon, guys!
you can make your lives inexpensive, just do a little calculation et voila! ;-)Magdalena Natalia Wiśniowska edytował(a) ten post dnia 28.10.09 o godzinie 10:32
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Ilter K.

Ilter K. Business Developer,
Music Producer, AVID
Certified Instru...

Temat: Cost of living vs earnings comparative analysis

Costs of living in Istanbul, Ankara, and smaller cities are also having vast numeric differences.

One has to live in Warsaw to realize how expensive this city is. Apartments for rent/buy are CRAZY in here.
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Bernd Schreckenberg

Bernd Schreckenberg I am an experienced
teacher, with a
diverse background,
h...

Temat: Cost of living vs earnings comparative analysis

I rented a shithole at Rondo Wiatraczna. It was 25m2, one room and a tiny bathroom. 1000 plus extras. So 1300 total I'd say. It was a new block build in 2000, but the quality was poor nonetheless.

When I moved out, the landlady let me in on her plans, to draw a wall into the apartment, to create a 2nd room/bedroom. So she could say: wysoki sztandard, 2 pokoje, w nowym budynku, 1200+ media.

That was two and a half year ago. Since then the prices rose dramatically and only fell very little with the 'crisis'.

Warsaw is an immensely expensive city, by European statistics a lot more expensive than Berlin. And I always wonder how these people with a 1500Zl. income manage...
That's a true Polish wonder to me!
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Temat: Cost of living vs earnings comparative analysis

Magdalena Natalia Wiśniowska:
c'mon, guys!
you can make your lives inexpensive, just do a little calculation et voila! ;-)Magdalena Natalia Wiśniowska edytował(a) ten post dnia 28.10.09 o godzinie 10:32
You don't have kids, do you? ;D

Most of what I earn is spent on food/accommodation, and the kid (school, clothes, books, and medicines - he has asthma).
Then comes ZUS, life insurance, private health care plan, and other stuuf. If I lived in Warsaw I would have to be making at least twice as much to live as comfortably as here.
If I used Steve's 1:2 ratio and could get that in the UK, I would be writing to you from Bath :D
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Rafał Wołk

Rafał Wołk I'm not arrogant,
you're just offended
by my confidence.

Temat: Cost of living vs earnings comparative analysis

Tatiana S.:
Magdalena Natalia Wiśniowska:
c'mon, guys!
you can make your lives inexpensive, just do a little calculation et voila! ;-)Magdalena Natalia Wiśniowska edytował(a) ten post dnia 28.10.09 o godzinie 10:32
You don't have kids, do you? ;D

Most of what I earn is spent on food/accommodation, and the kid (school, clothes, books, and medicines - he has asthma).
Then comes ZUS, life insurance, private health care plan, and other stuuf. If I lived in Warsaw I would have to be making at least twice as much to live as comfortably as here.
If I used Steve's 1:2 ratio and could get that in the UK, I would be writing to you from Bath :D

Childcare alone ... ugh... I sometimes feel like I'm working to support my nanny.
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Magdalena Natalia Wiśniowska

Magdalena Natalia Wiśniowska Recruitment Manager
at Amazon Web
Services

Temat: Cost of living vs earnings comparative analysis

yes, i speak only about myself.
and as i said before, it's all about expenses..

i know if i had kids i would have to earn twice my salary, i know that..
and I do admire single parents, you included.
my dear friend has three kids but she's a strong personality and is a really good employee - I wish I could be like her..

p.s. my 40m2 costs me 1000pln but i was lucky finding such a great proprietor who is not greedy nor does he live on my rent.
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Magdalena Natalia Wiśniowska

Magdalena Natalia Wiśniowska Recruitment Manager
at Amazon Web
Services

Temat: Cost of living vs earnings comparative analysis

ilter K.:
Apartments for rent/buy are CRAZY in here.

yeah, and those 30 years credits..
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Temat: Cost of living vs earnings comparative analysis

Magdalena Natalia Wiśniowska:
p.s. my 40m2 costs me 1000pln but i was lucky finding such a great proprietor who is not greedy nor does he live on my rent.

I wouldn't afford to rent an apartment :)
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Temat: Cost of living vs earnings comparative analysis

Childcare alone ... ugh... I sometimes feel like I'm working to support my nanny.

Raf:)I'm a bit sarcastic of course and/so sorry 4 that, but I bet you've also heard about 2 best-ever professions in Waw?here we go: a cleaning lady and a nanny:)
I know a company that has the above mentioned cleaning ladies on the payroll with all the benefits they r entitled to:)
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