Quitting Your Job And Living Abroad
Have you ever considered moving to a different country? Or perhaps you’re curious how far a US dollar will go on your next international trip. Rent, bills, health care, and groceries are examples of basic costs that people face on a daily basis. These costs are referred to as the cost of living.
Understanding why your cost-of-living expenses relate to you may assist you in budgeting and planning for the future. When you know where your money is going each month, you can make more informed spending and saving decisions—and be better prepared for the unexpected.
We investigated the cost of living in different countries around the world and featured interviews with recent expats to help you learn more about the world’s most expensive places.
What is Cost of Living?
The cost of living is a way of measuring how much money it takes to live a reasonably normal quality of life. We frequently discuss the cost of living in different places, such as the cost of living in different cities or the cost of living in different countries.
Economists calculate the cost of living by comparing different cities or countries and adding up the prices of the goods that people require to live a normal life:
- food and drink
The price of a portion of goods and services that everyone requires, such as food and housing, is used to calculate the cost of living. In addition, the amount of these goods and services you can afford is determined by your income and budget. A carton of eggs may cost a dollar more in the next city over, but the pay may be higher as well, which offsets the higher cost of goods.
Cost of Living Calculators
Online calculators that analyze these details can be used to calculate the cost of living. Calculators typically assist you in determining the average cost of regular expenses in the area where you live or are considering relocating.
If you’re thinking about retiring in another country, compare the cost of living there to where you live now. See how much a typical restaurant meal costs, or how much a one-bedroom apartment in the city and the surrounding area costs on average. Compare grocery prices, utilities, and, if applicable, child care. Evaluating these factors will show you how far your dollar will travel in your new location, giving you an idea of how much more (or less) you’ll need to earn if you decide to relocate.
Doing your research is critical if you plan to make a significant change, such as moving to a new country! Fortunately, there are numerous online resources and blogs that will provide you with detailed and up-to-date information about living in a new place with a different cost of living.
Most people expect long-term travel or living abroad to be expensive, and it is true that if you choose expensive countries, your hard-earned money may not get you very far. However, if you avoid popular, high-priced destinations such as Italy or Australia and commit to some of the cheapest countries to live and work in, you could be surprised at how well you can live on a modest salary. Why work in a corporate office when you could be discovering different cultures, having adventures, and making a decent wage abroad?
There are many awesome, low-cost countries where you can work and live while earning money. Leveraging your salary in a low-cost country can allow you to save money and then travel more once your job is finished. Whichever low-cost country you choose from this list, make sure to evaluate salaries and inquire about any benefits or perks included in the program (such as free rent!) that could help your money go further. Most importantly, have a fantastic journey!
Most Expensive Countries
Bermuda, a British island territory made up of 181 islands in the North Atlantic Ocean, will be the most expensive country in 2024. Bermuda’s pink sand beaches and subtropical climate are well-known. Bermuda’s cost of living is infamously high due to high import duties and its remote location.
- United Arab Emirates
- United States
- New Zealand
Least Expensive Countries
There are advantages and disadvantages to living in some of the world’s cheapest destinations. Some of the things you accept as normal in your home country may have to be sacrificed. Infrastructure may be lacking. The educational system may be subpar. There may not be a Starbucks on every street corner… If you plan on relocating to one of these low-cost countries, make sure to enjoy the low cost of living while also having experienced a high quality of life in whichever country you choose to call home.
Pakistan is the world’s least expensive place to live, work, and visit. Despite the low cost of living and security concerns, visitors to Pakistan frequently comment on the country’s exceptional hospitality. Foreign visitors are struck by how commonly they are given gifts and how warmly they are received by locals.
Most Expensive Cities to Live In
North America: With a cost of living index 46 percent higher than New York City, Hamilton, Bermuda maintains a significant lead over the rest. The second most expensive city in North America is New York City, which is widely used as a baseline for cost of living models.
Europe: Switzerland dominates the list of Europe’s top five most expensive cities. The average cost of living in Switzerland is nearly 32% higher than in New York City and 60% higher than in the United States. Next is Norway, Iceland, Jersey, and Denmark.