Mortgages and Loans » cost of living

How to calculate your cost of living

Fri, 04 Dec 2009 14:57:35 +0000

The personal cost of living is a number that many people do not think much about. It’s too bad more people don’t calculate their personal cost of living though, as this number can have a huge impact on every aspect of life. The cost of living is not simply decided by the city or state you live in, although that does have quite an effect on it, but also on the style of life you live and how you spend the money you make.

To figure out cost of living, there are several “calculators” and formulas on the internet that can help, some of which are more specific to cost of living per city. Others will compare the city you are moving from to the city you are moving to, and tell you if you can afford the city you are moving to and how your lifestyle will change if the cost of living is higher.

In order to get an estimate of your personal cost of living, there are several steps to follow. First, collect all receipts for your expenses over the last six months and sort them on a month-by-month basis. This includes rent/mortgage, utilities, healthcare, dental, entertainment (movies, concerts, magazine subscriptions), restaurant receipts, child/pet care, car payments, new clothes and shoes, etc. Next, average the six months, and then add 5%. The 5% will cover any unforeseen hardships, travel, holidays, etc. This is now your estimated monthly cost. Now, subtract this number from the amount you receive in income in a one-month period. Hopefully, you are left with a number that is at least $500. If you have a deficit, you are living beyond your means and need to change your spending habits. While this is just a rough estimate of your personal cost of living, using this equation can help you to better budget and plan for future long-term financial goals.

Whats the minimum wage around the world

Mon, 08 Jun 2009 12:17:45 +0000

The standard of a minimum wage in the U.S. is different than that of any other country. The U.S. has the ability to decide the minimum wage on both a federal and state level. Every other country chooses one or the other. For instance, China has a regional minimum wage, whereas Vietnam has a minimum wage that is set for the entire country. Another astounding difference is that it is the norm for many other countries, maybe even the majority of other countries, to establish a minimum wage on a monthly basis instead of an hourly basis such as that of the U.S. The idea for a minimum wage started in New Zealand and Australia as a way to protect underpaid workers in specific industries, and now the minimum wage movement is used in over half of the 194 countries in the world.

When reviewing minimum wages for other countries we must also take in to consideration the cost of living. Even knowing the cost of living is quite a bit lower in South Africa than in New York City, it still seems shocking that the minimum wage in South Africa, one of Africa’s richest nations, is a mere $.55 (USD). A citizen of Angola may consider themselves lucky though, as the minimum wage is only $.25, and $.21 in Ghana.

Moving to Asia the high and low countries are South Korea and Mongolia, respectively. South Korea tops the charts with $3.30, while Mongolia scrapes in at $.02. The top European nation is Ireland at $10.92, a far cry from the $1.90 in Hungary. Australians earn a minimum of $10.42/hour, Canadians a modest $6.13, and El Salvador $.31 with Chili being the breadwinner of South America at $1.44 USD/hour.

Minimum wage is determined by the government and is calculated with cost of living in mind as well as what an increase would do to jobs and the local and global economy.