Two very popular questions we are asked are “How did you plan your budget?” and “How did you figure out the Cost of Living?”. These two simple questions can almost paralyze your mind when you are contemplating a move or even a long holiday. We are going to help you out and make it seem easy!
Alan and I have moved a few times during our 16+ years of marriage. Each time we needed to figure out the Cost of Living in our new location, so we could appropriately plan our budget. We moved from California to London, England and back, from California to North Carolina and from North Carolina to Spain. Each of these moves took a great deal of research to determine exactly where we would live and what we could afford. As time progresses and technology improves, the task of estimating the cost of living becomes a bit easier.
I would like to share with you the tips and tools we like to use when trying to estimate the cost of living for our next destination. Whether it is a new place to live or if we are just doing some fun family travel, it is great to estimate the costs. These tips should be applicable to most locations you desire to live / travel internationally or within your home country.
Essential Tips To Estimate the Cost of Living
Cost of living Calculators:
- My first stop is always Numbeo when planning a vacation or a move. “Numbeo is the world’s largest database of user contributed data about cities and countries worldwide.”
- I like to get an idea of prices for everyday things. I have personally contributed to this site using actual receipts to enter my data, so I think it is fairly accurate. This is obviously not all-inclusive of every small town, but you can get pretty close from a stick of butter to utilities. This does include housing as well, but as you will see a full search on current prices on the housing market is better.
- I often head directly to the cost comparison between 2 locations. This helps me spot check my current location for accuracy and then I can estimate the accuracy for the “to be” location as well. There is so much to learn here, Prices by City or Country as well as Cost of Living Calculators. Go ahead and poke around and get a feel for it.
- Property Searches: I scour long-term and short-term rental properties in the area, regardless of planning to stay for a year, a month or a week. I want to get a feel for the “going rates”, so if I need to negotiate an offer I can be educated (yes even for a weekly rental).
- Look at all options – Owner Managed and Property Managed listings. I often search for “name of location” along with accommodations or long-term or short-term rentals.
- Don’t be afraid to ask a “long-term” rental owner for a short last-minute stay. On the converse, don’t be afraid to ask a “short-term” rental owner about a long-term stay. That is how we landed our incredible place in Spain. It was listed as a holiday rental. We asked if he would consider long-term as we would guarantee one full year. I had also done loads of research on pricing for a long-term rental, so it was easy to come up with an agreed upon price.
- General rule – You can count on a higher price in a more touristy area, closer to the coast, or closer to the city center.
- Be realistic when searching and view properties that you think you can afford as well as those that visually appeal to you. Remember at this point you are only trying to get a feel for the housing prices, but you do need to look at the amenities too. What is included in the price? (Parking, Utilities, Furnishings, Internet etc.)
The Cost of Everyday Things:
- I search for local web sites: sporting goods, grocery, clothing, see if they have on-line shopping to give you an idea of pricing.
- Restaurants: see if they have menus with prices.
- Communications: internet, cell phone plans, SIM cards and ball park prices/packages.
- Transportation: Search for the local public transit costs, monthly or daily passes, family discounts.
Travelers love to share info: Hey you already know that, you read our blog! :-)
- Look for “expat blogs“ in the area you desire. There are many blog directories or a Google search should do the trick, to see if your desired location is listed. It is likely someone is writing about your location.
- Travel Blogs are full of detailed information, tips and tricks. I know a few years ago, I happened upon The Soul Travelers 3 Family. Reading their blog helped get me over the hurdle of dreaming about living ab
road and realizing it was not only possible, but affordable.
If you have any tips or tricks you use, please share in the comments below.