Cost Of Living Overseas Guides and Calculation

Many expats make the mistake of thinking that living costs are all about budgets and raw numbers. To me, “cost of living” isn’t just dollars and cents. Sure, money matters, which is why the “COST” is in there, but “LIVING” is equally important.

Quality of life matters as much as money.

If you are thinking about moving to a new country or city, my cost of living comparison guides answer two key questions:

1. How much will it cost me to live there?
2. What kind of lifestyle does that money buy me? 

• Housing Costs: This is where most of your money goes. It’s usually your biggest bill. Most Americans spend about 30% of their living expenses on housing. My estimates always assume you’re renting. But I include all housing costs, not just rent. That means utilities (electric, water, garbage, gas, and internet), plus any cleaning or upkeep fees.

  To standardize when comparing cities, we always rent either a big one-bedroom or small two-bedroom place in the city center or similar expat-friendly neighborhood.  
  

• Food Budget: My food budget covers groceries, cheap quick meals, sit-down restaurants, and fancy dining splurges. However, this is one category where I flex my assumptions. IIn places where there is good value eating out (examples: Buenos Aires, Argentina or Hoi An, Viet Nam), we might eat out half the time. If we don’t like the local food or restaurant prices are expensive for the quality of meal, we eat out less. You can always find eating out assumptions in each city’s cost of living comparison. 

  For groceries, I use a standard list of two healthy meals you can prepare with ingredients commonly food in all countries. The meals are well balanced and include beef, chicken, fruits, and vegetables. You can see the details for my standardized grocery list and meals here.

• Transportation Expense: Here’s where you can save big bucks abroad. In the US, transportation is the second biggest cost. It’s not just your car, but gas, repairs, insurance, and parking. Living in walkable cities or living in Europe with fantastic public transportation can drastically slash your monthly costs.
• Healthcare costs: It’s no shock that US healthcare costs more than anywhere else. But the difference might surprise you. Americans spend about $500 a month on health insurance premiums. That’s before deductibles and co-pays. In contrast, I’ve paid as little as $50 a month for full coverage private health insurance with no extra costs.

These four big expenses make up about 67% of your living costs in a major city.

• Additional costs I include: For a complete picture, my cost of living guides also cover Entertainment, Personal Luxury, and Misc Items. 
• What is not included: Taxes, travel, and childcare. These costs change too much based on personal situations to standardize.

All international cost of living estimates come from me and my experiences living in over 50+ plus countries. These are real-world, boots on the ground costs that I spent living in different cities. 

The benchmark US cost of living data is from Economic Policy Institute (EPI) Family Budget Calculator that measures monthly cost to maintain a modest yet adequate standard of living in the United States.

You might wonder why you should use our tool instead of other cost of living calculators. Let me break it down for you:

• Real-world data: Our tool uses actual spending data. I’ve lived in over 50 countries, and these numbers come from my own wallet. No guesswork, no outdated info. Just real costs from a real expat.
• One voice, one standard: With me as the sole judge, you get a consistent view across all cities. Other tools often use crowdsourced information, which can be inconsistent based on different ideas of what what people consider comfortable. With Nomadic FIRE, it’s apples to apples every time.
• Focus on expat life: We zero in on the costs that matter to expats, retirees, and digital nomads. Our tool considers expat-friendly neighborhoods and lifestyle choices that other calculators might miss.
• Quality of life factor: Remember, it’s not just about the numbers. We factor in what your money buys you in terms of lifestyle. Our tool considers both cost and quality, helping you find places where you can live better for less money. Our guides help you find places where your money goes further without sacrificing quality of life.
• Up-to-date information: Prices change fast. Our data is current because I’m constantly traveling and updating costs. Many other resources rely on outdated information.
• Transparency: We show you exactly what’s included in each category. No hidden costs or vague estimates. You’ll know precisely what you’re looking at. I list all the assumptions for you to look over, so you can see exactly how I arrived at each figure.
• Practical insights: Beyond just numbers, I provide insights about living in each place. These come from firsthand experience, not just statistics.
• Insider Tips: It’s not just about spending money, but cutting out the excess. My guides always include several insider tips that show you how to get the most bang for your buck. 

By using our tool, you’re getting a realistic, current, and expat-focused view of living costs around the world. It’s like having a friend who’s lived everywhere and can give you the inside scoop. That’s something other resources just can’t match.