If you are planning to work abroad, one of the most important factors to consider is the cost of living. How can you compare the prices of goods and services, taxes, rent, utilities, transportation, and entertainment in different countries and cities? In this article, we will share some tips and tools to help you make an informed decision and budget accordingly.
Comparing the cost of living abroad can help you avoid unpleasant surprises and financial stress. You may find that your salary or income is higher or lower than in your home country, but that does not necessarily reflect your purchasing power or quality of life. You may also have to deal with currency fluctuations, inflation, and exchange fees. By comparing the cost of living abroad, you can assess how much you need to earn and save, negotiate your compensation package, and plan your expenses and lifestyle.
One of the easiest ways to compare the cost of living abroad is to use online calculators and indexes that provide data and rankings for various countries and cities. These tools can give you a general overview of the average prices and expenses for different categories, such as food, housing, transportation, health care, education, and leisure. Some examples of online calculators and indexes are Numbeo, Expatistan, and Mercer. However, you should be aware of the limitations and sources of these tools, as they may not reflect the latest or most accurate information, or your specific situation and preferences.
The main question of these tools is to know exactly what they include in their comparison basket... If it's only the price of a baguette, taxis, or newspaper, it's useless
Another way to compare the cost of living abroad is to research local prices and taxes for the items and services that matter most to you. You can use online platforms, such as websites, blogs, forums, and social media, to find information and reviews from expats, locals, and travelers who share their experiences and insights. You can also check official sources, such as government websites, tax authorities, and consumer associations, to find out about the tax rates, deductions, and benefits that apply to your income and spending. You can also use online tools, such as currency converters, inflation calculators, and tax calculators, to estimate your net income and purchasing power.
Another factor to consider when comparing the cost of living abroad is your lifestyle. Depending on your habits, preferences, and goals, you may have different priorities and needs than the average person or the online calculator. For example, you may want to live in a central location, eat out frequently, travel often, or enroll in a course or a gym. You may also have to factor in additional costs, such as health insurance, visa fees, or international transfers. To compare the cost of living by lifestyle, you can create a personal budget that reflects your income and expenses, and adjust it according to the local prices and taxes.
Finally, when comparing the cost of living abroad, you should not only look at the numbers, but also at the value. The value of living abroad is the subjective and qualitative aspect of your experience, such as your happiness, satisfaction, safety, comfort, and opportunities. You may find that a higher or lower cost of living does not necessarily mean a better or worse quality of life. You may also find that some aspects of living abroad are priceless, such as the cultural diversity, the personal growth, the professional development, and the social network. To compare the cost of living by value, you can weigh the pros and cons of living abroad, and consider your expectations and goals.
The most important to consider abroad is * educational cost (for children) * health insurance cost * apartment renting cost * Average price for a two people dinner in a fancy restaurant (but not the most fancy one) * domestic airlines tickets