There’s no denying that Ukraine is one of the poorest countries in all of Europe. Between the fall of the Soviet Union, corruption, and ridiculous bureaucracy, the nation has been kept down for decades. Of course, this causes many people to wish to leave their home country behind. Interestingly enough, many people still manage to get by in a way that rivals many families in the United States and other Western nations. Ukraine is definitely poor, but there’s plenty good reason to question the official numbers in regards to just how poor it really is. Today, we’re discussing this paradoxical situation, specifically, what is the truth about the average salary in Ukraine.
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What Is The Average Salary in Ukraine?
According to the “official” numbers, $451 per month.
As of October 2019, the average salary is roughly ₴10679.00, which translates to $451. This is all while the country has roughly 7% unemployment and an average retirement age of 60 for men, and 58 for women.
All in all, the country is in pretty bad financial shape.
Here’s why…
Why The Average Salary in Ukraine Low?
Phew, where to start with a question like this!
Ukraine was once a part of the Soviet Union, or USSR. To make a long story short, this was a massive nation that existed for 69 years that practiced an ideology known as Communism. This meant that all of the nation’s resources, including: labor, material goods and natural resources were controlled by the federal government, and everyone was given access to the same level of affluence.
In other words, they created a classless society that did away with the use of money. In 1991, this grand ideological experiment finally failed, and all nations that were a part of the USSR have been tasked with rebuilding their economies from scratch.
Some countries, such as Poland or Estonia, have done remarkably well at transitioning from a centrally planned economy to a free market. Others, like Ukraine, Serbia and Georgia, have struggled immensely.
As a result, joblessness remains high, most people lack the capital to start businesses, and economic progress is stalled.
As a result, few good jobs exist, and salaries remain extraordinarily low.
Then again, while this is undeniably bad for the average person living in Ukraine, it makes the former Soviet Union a hotspot for anybody with a mobile income stream.
Is The Number Accurate?
It is important to recognize that while the average salary in Ukraine is certainly quite low, one must also remember that this is just the money that the government “knows” about.
In reality, many people are being paid “under the table” or in cash so that it is not reported to the Ukrainian government. Therefore, this income is not taxed in such a way that someone’s salary is reduced even more.
Generally speaking, people in Ukraine do not trust the government or the banking system. Any logical person would not.
As such, most of the population hiding money will largely reduce the official numbers. Arrangements like this are extremely common in Ukraine, mostly due to the fact that they lack an IRS-type institution that will effectively peruse people for tax evasion.
In reality, the official number may be a bit closer to $600 per month for some, and even $1000 for others. While many people shriek when they hear this, it’s important to remember that the majority of families in the former Soviet Union were given free apartments, many of which remain with them to this very day.
When you remove housing from your cost of living, it is entirely possible to live off of $600 a month in Ukraine. You may not be living like a king, but in many places, you would actually do just fine.
If anything, this should serve as a wakeup call that some golden opportunities exist in Ukraine for those willing to spend time there.
What This Means For You
Perhaps the largest misconception that exists in regards to living in Ukraine (or any foreign country, for that matter), is that if you live in a poor country, you are automatically poor as well.
This is a massive oversimplification. It is entirely true that the most average Ukrainian lives in poverty and may only make $450 per month. But, it is also important to note that even making a meager online salary in dollars, pounds or euros will automatically put you into the top 1% of the nation’s earners.
Think about it…if the average salary is under $400 per month, and you’re making $1,500 per month, you’re a rich person.
The important distinction here is that, as an expat, you are most likely working online and earning an income that comes from outside of Ukraine. Generally speaking, you don’t go to Ukraine to try to get a job as a local would. Doing that puts you into the trap of earning something close to the nation’s average salary.
Live in Ukraine, Make Money Abroad
Herein lies the problem with people who choose to go abroad and work in a hostel, wait tables, or get a job teaching at a local English school. In reality, this is a terrible idea, and there are plenty of ways to leverage yourself to make money online as opposed to subjecting yourself to the backbreaking labor of a developing country.
The sad fact of the matter is that the average salary in Ukraine being low is awful for those who work domestically, and honestly quite good for those working remotely.
In other words, you essentially stand to benefit from the lackluster economic situation in the country. As someone who is still getting in on the country while it is “hot,” you are able to move there easily, save loads of money by enjoying a low cost of living and paying significantly less in US income tax if you are American.
This is why you will often see young guys with questionable sources of income driving Mercedes G-Wagons around in Ukraine. Everything else in the country is so cheap that they’re left with an abundance of cash if they make a decent wage by Western standards doing something illegal.
But of course, I’d never tell you to do that. Instead, I encourage you to flex your entrepreneurial muscles accordingly. Learn copywriting. Become an expert at coding. Do whatever you can to free yourself from the shackles of the 9-5! The benefits are huge.
Even if you’re working the most menial of online jobs, you can effectively stash away tens of thousands in extra income a year to the point where you have the opportunity to purchase real estate or invest in the stock market, retiring yourself early, and living a life of freedom.
What’s not to love? Try doing that in the USA!
Conclusion
There you have it! While Ukraine is certainly poor, it is not as poor as the official numbers say. Even still, it is a ridiculously inexpensive country to live in, highlighting what a golden opportunity it is for those looking for an international home base.
The only thing that’s better than the many financial benefits that exist in Ukraine are, of course, its women. If you’re interested in meeting Ukrainian women, check out this website!
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