Cost of Living Comparison
Cost of living indices compare expense levels between locations. If current city has index 100 (baseline) and new city is 140, new city is 40% more expensive. To maintain same lifestyle on $75,000 current salary, you need $105,000 in new city - a $30,000 (40%) increase.
COL indices account for housing, food, transportation, healthcare, utilities, and other expenses. Housing is usually largest factor - cities like San Francisco or New York have indices 180+ largely due to housing costs. Lower COL cities might have indices 80-90, meaning your money goes 10-20% further.
Use COL comparisons when evaluating job offers in different cities, considering relocations, or planning retirement moves. Don't just compare salaries - $90,000 in low-COL city might provide better lifestyle than $120,000 in high-COL city. Also consider career opportunities, quality of life factors, and long-term earning potential beyond immediate cost differences.
Quick Tips
- Always compare APR, not just interest rates
- Use the Rule of 72 to estimate doubling time
- Extra payments dramatically reduce total interest
Frequently Asked Questions
Multiple sources - Numbeo, BestPlaces, Council for Community and Economic Research (C2ER), PayScale. Compare multiple sources as methodologies vary. Look for indices specific to your lifestyle - single vs family, renter vs owner.
They're estimates based on averages. Your actual costs depend on lifestyle, housing choices, family size. Use as starting point, then research specific costs (rent, groceries, gas, childcare) in new location for your situation.
Consider total picture - lower costs but also potentially lower salaries, fewer job opportunities, different lifestyle. Remote work enables living in low-COL area with high-COL salary - powerful wealth-building strategy. Evaluate career, family, and personal priorities.