What Is the 'Cost of Living'?

The cost of living is the amount a person needs to spend to cover basic expenses such as housing, food, taxes, and healthcare. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Cost of Living The cost of living is the amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time period. The cost of living is often used to compare how expensive it is to live in one city versus another. The cost of living is tied to wages. If expenses are higher in a city, such as New York, for example, salary levels must be higher so that people can afford to live in that city. Read More » Related to "Cost of Living" 9 States With No Income Tax These nine states have no income tax, but moving there may not save you money. Read More » 22 Ways to Fight Rising Food Prices As food costs rise, it can be difficult to stay within your budget. Here are some tips that can help you spend less each month. Read More » SPONSORED BY FIDELITY INVESTMENTS Fidelity's Unique Career Opportunities With extensive training and rewarding work, Fidelity stands out when it comes to career development. Here are some of the key benefits they offer employees. Learn More » How Inflation Affects Your Cost of Living The two terms are used interchangeably, but inflation is not the same thing as cost of living. Here's how these two factors interact. Read More » Sign Up for 'Chart Advisor' Want more Investopedia market news? Investopedia's expert analysts present market performance for the day and discuss with in-depth charting and technical analysis, a must read for traders. Subscribe» Related Definitions Standard of Living A standard of living refers to the amount and quality of material goods and services available to a given population. Read More » Personal Finance Personal finance is all about managing your personal budget, and how to best invest your money. Read More » Budget A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Read More » Inflation Inflation is a general increase in the prices of goods and services in an economy over some period of time. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy