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Cost – Variance in Different Countries August 3rd, 2008
The prices of every product varies in every country. I decided to do a small analysis on this. It’s based on the pay an average graduate gets to the percentage of salary he spends on regular merchandise like daily or monthly supplies. I also included the price of a sedan vehicle just give a picture of how the variance is between countries. I decided to go with three countries India, U.S and Australia.
The Pay an average graduate gets in India per month – 20,000 Rs.
The Pay an average graduate gets in U.S per month – 3750 USD.
The Pay an average graduate gets in Australia per month – 3826 AUD.
I call this the Earn-n-Spend table
ESP(Earn Spend Percentile) = (Cost/Salary)*10000
The ESP will give the percentage of earnings an average per month graduate will have to spend on the listed commodities below. One can multiply the rate with quantity required in a month to find the total amount he will be spending on that item for the month. The lower the ESP the better. The rates might differ from what i have mentioned but not much(If there is a large variance let me know). All are approximate values and may change.
| Australia | America | India | Winner | ||||
| Commodity | AUD | ESP | USD | ESP | RS | ESP | |
| loaf of bread | 3 | 7.84 | 1 | 2.67 | 10 | 5 | America |
| Rice 1kg | 1.6 | 4.18 | 4 | 10.67 | 20 | 10 | Australia |
| Pasta 500g | 2 | 5.23 | 2 | 5.33 | 40 | 20 | Australia |
| Sausages | 5 | 13.07 | 4.55 | 12.13 | 200 | 100 | America |
| apple | 5 | 13.07 | 2.5 | 6.67 | 50 | 25 | America |
| Instant noodles | 0.7 | 1.83 | 0.5 | 1.33 | 7 | 3.5 | America |
| Potato 1kg | 2 | 5.23 | 2 | 5.33 | 15 | 7.5 | America |
| 500g minced beef | 8 | 20.91 | 3 | 8 | 40 | 20 | America |
| tin of tuna | 1 | 2.61 | 1 | 2.67 | 150 | 75 | Australia |
| 12 eggs | 3 | 7.84 | 2 | 5.33 | 24 | 12 | America |
| 1 kg bananas | 2 | 5.23 | 1.5 | 4 | 25 | 12.5 | America |
| 1 litre of milk | 1.75 | 4.57 | 1.49 | 3.97 | 7 | 3.5 | India |
| 1 packet biscuits | 2 | 5.23 | 1 | 2.67 | 10 | 5 | America |
| 1 litre orange juice | 1.3 | 3.4 | 1 | 2.67 | 40 | 20 | America |
| Coffee | 4 | 10.45 | 3 | 8 | 8 | 4 | India |
| cinema ticket | 12 | 31.36 | 10 | 26.67 | 50 | 25 | India |
| bowling | 12 | 31.36 | 8 | 21.33 | 120 | 60 | America |
| nightclub entrance | 10 | 26.14 | 10 | 26.67 | 500 | 250 | Australia |
| pint of beer (570 ml) | 7 | 18.3 | 3 | 8 | 75 | 37.5 | America |
| A decent hamburger | 6 | 15.68 | 2 | 5.33 | 75 | 37.5 | America |
| can of Coke | 2 | 5.23 | 1 | 2.67 | 20 | 10 | America |
| haircut (men) | 17 | 44.43 | 14 | 37.33 | 50 | 25 | India |
| haircut (women) | 40 | 104.55 | 40 | 106.67 | 200 | 100 | India |
| shoes | 50 | 130.68 | 40 | 106.67 | 500 | 250 | America |
| tights | 20 | 52.27 | 15 | 40 | 100 | 50 | America |
| jeans | 60 | 156.82 | 50 | 133.33 | 700 | 350 | America |
| sweater | 50 | 130.68 | 40 | 106.67 | 400 | 200 | America |
| T shirt | 12 | 31.36 | 10 | 26.67 | 100 | 50 | America |
| Chicken(whole) | 3.75 | 9.8 | 1.75 | 4.67 | 100 | 50 | America |
| transport/month | 100 | 261.37 | 110 | 293.33 | 200 | 100 | India |
| Car | 30000 | 78410.87 | 30000 | 80000 | 100,0000 | 500000 | Australia |
Seems like U.S is a cheaper place for a graduate to live. And people say U.S is expensive. I think Australia is more expensive. Ofcourse there is a money conversion between them but I only did the table for graduates living in those specific countries and earning there.
Tags: america, Australia, cost comparison, Groceries price, india, usa
Posted in Life in Oz | Comments (150)
150 Responses to “Cost – Variance in Different Countries”
Leave a Reply
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August 5th, 2008 at 1:34 am
[...] [...]
August 6th, 2008 at 2:12 am
The real expenditure in us is not food. It is the taxes+rent/utilities + vehicle/insurance. Then u get the grad student fees into play. Being a grad student who finds it tough to make ends meet – trust me America is NOT cheap.
August 8th, 2008 at 6:50 am
US is expensive for Higher education. If you have a loan behind and if you get paid @ 6$ an hour (min wage), survival is tough – As raj has pointed out, Rent is way too high. Insurance is high for ppl<25 and for those who dont have a I pay 25% of my salary towards rent and all I have is a room
.
At the end of the day, a lot depends on your lifestyle. The day you convince yourself that $1 = Re.1, a new life begins. Thats how I’ve been able to survive, looking beyond the monthly food and other expenses!
You have arrived at an hypothetical conclusion based on food ONLY. Americans eat rather HOG, so food will be cheaper. Lets consider a different Scenario. Say you have a 2 bed house. And only one bath. How much would it cost to construct anothe bathroom back home? – 20 K may be 30 K worst case? Trust me In US, my landlord was given a quote of USD 14,000 for it! HOLY CRAP!
Manual Labor is way too expensive.
Case 2 – Back home u can get a good house, one bed apt, for say 40 – 50L Lakhs in Ashok nagar (Prime area). Thats about 7 Yrs salary (6 L per annum is common these days)
Out here, a single family home Equivalent to a 1 bed costs about 600 Grand thats atleast 10 – 12 yrs of ur total Income.
THIS is the case even though most lands are un occupied in this country. Back home u hardly have space to walk!
Add to it a 13 % tax in india and 30% tax out here!
Every country prorates its prices based on Demand and supply. US – Too much junk so food is cheap. India.. Too little space to live so real estate is moderately High.
August 23rd, 2008 at 7:24 pm
how about the earnings after the completion of education…?? no one mentioned that??
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