How Can You Compare the Costs of Living?

5 min read time

You may already be tired of knowing that putting all your spending at the tip of the pencil is critical to keeping track of your monthly budget, right? But have you ever wondered why some people seem to be able to make their money pay more in cities other than yours? The answer is simple and involves one big variable: the cost of living. At such times, it is common for the mind to begin to wonder if it is worth living where you are and if you could not get more out of life moving from a city or even a country. Fortunately, there is a way to measure the cost of living in your area and compare it with other locations. Want to know how?

We have prepared this content so that you know more about this concept and learn how to make this comparison properly. Good reading!

After all, what is the cost of living? We are talking here of nothing more than the amount of money needed to support a certain standard of living, including basic expenses such as housing, food, clothing, gasoline, utilities, the internet, taxes, health care, and other everyday items. This variable is often used to compare how expensive it is to live in a city versus another location. Cost of Living Comparison is linked to salary gain, as remuneration levels need to be measured against the expenses needed to maintain a basic standard of living in different regions.

It is understood, then, that the cost of living can be a significant factor in the accumulation of personal wealth since a lower salary can pay more in a city where surviving does not cost much, while a high salary may seem insufficient in a city. face.

Cost of Living Comparison using Cost of Living Calculator

Many sources today can estimate the cost of living for citizens. However, it is important to keep in mind that this comparison is based on an index. Thus, your actual specific expenses may be higher or lower than the values ​​expressed by surveys. By the way, did you know that anyone can collaborate and inform the values ​​of certain products to enrich the database of platforms that offer these tools?

Getting back to the point: Platforms calculate the cost of living by looking for prices for a representative sample of goods and services. They then take into account how much of a person's budget would be consumed for a particular item in a year. A liter of milk, for example, may not cost much compared to a jacket. However, over a year, food would cost more than clothing. This is how the price of each product is weighted to consider its importance to a household's budget.

Where to compare the values?

With the many tools available today, it is becoming easier to know the cost of living in different parts of the world. You can, for example, compare this measurement of your city with a city you want to visit in the future. This way you know the average prices of that place and can better prepare you for the trip. Here, we provide you with Cost of Living Calculator to help with your Cost of Living Comparison

How to save in places with a high cost of living?

Here are some tips that can help you lower your budget if you live in a city or region with a high cost of living. Check out!

Share the house

As mentioned, one of the factors directly impacted by the cost of living in the value of housing. So it's easy to imagine that having an apartment with a nice space in a good neighborhood can be quite costly. The solution is to adopt a common custom in countries such as the United States, Australia, and England: sharing housing with others.

If a house has two bedrooms, for example, you can use one and share the second rent with someone else. The free areas, such as bathroom, living room and kitchen, are in common use and the total value is diluted between two rents, saving both residents.

Make a shopping list

This is a basic tip that goes for anyone and any cost of living index, as saving is always a big goal: always go shopping with a shortlist of those items that are needed for you at that time. This is because, with the higher cost of living, consequently the value of food will also be higher. That being the case, not everyone can afford to go into the supermarket and pick up any product from the gondolas. Check what you need for the week, make a note of the items and only then go shopping!

Consider public transportation

Have you ever found yourself walking down the street and moving faster than cars during peak hours? If your answer was yes, then you know that cities usually have traffic problems. Joining the public transport system may be the wisest option. Consider that the costs of gasoline, parking, maintenance, and insurance of a car can be quite high and that, especially in big cities, this alternative may not offer so many advantages.

Another option is to go to work by bike, which besides being a highly economical alternative, still offers the benefit of physical exercise. What do you think about taking the test?

Search for free activities

Every midsized or large city offers its residents free activities, ranging from beauty tutorials at a store opening to in-park yoga classes and open concerts. All you have to do to enjoy these leisure options is to stay tuned for the week's events in the newspapers or on social networks. The cost of living in the city where you live can indeed influence many factors, making a big difference at the end of the month. Either way, to stay financially healthy, the big trick is planning.

By putting the calculations we show here at the tip of the pencil and taking advantage of our Cost of Living Comparison and using our Cost of Living Calculator, you can live well anywhere on the globe!