How to calculate cost of living? Breakdown, index and calculator

How to calculate cost of living? Breakdown, index and calculator

The expenses that factor into cost of living are housing affordability, transportation expenses, food prices and entertainment.

A cost of living index is what allows you to compare costs between two places.

The Council for Community and Economic Research’s Cost of Living Index provides accurate measures of living cost differences in urban areas.

The index reflects different categories of consumer expenditures.

Cost of living is the amount of money you need to sustain a lifestyle in a particular place.

To calculate cost of living, simply add all your monthly fixed expenses, like rent or mortgage, and your variable expenses, such as groceries and gas costs.

Factor in occasional but expected purchases and the resulting amount, assuming you aren't going to debt every month, is your cost of living.

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