I Looked at the Cost of Living in 50 Countries. Here’s What Made Me Sad
It’s gotten a little late.
I was really scared.
Moving to another country and living with no expected date of return to your home country sounds crazy. If you are anti-social then you will walk like a wet chick. Add to that the local language which you don’t understand. Not to mention your purchasing power. It sounds crazy.
I won’t lie to you. I’ve thought about moving to Latin America. Especially Mexico or Brazil. In Europe, it would be Italy and then Germany. In North America, it would definitely be the USA.
There are several ways to compare the cost of living. Here I took a look at the so-called purchasing power parity and used data from the World Bank to keep an eye on it.
The Definition That Matters
First of all, what is purchasing power parity?
Let’s imagine a shopping cart with various products such as food, cars, and many others. Theoretically, this basket of goods should cost the same in every country in the world if the price is converted to the same currency, for example, the US dollar.
The prerequisite for this is, of course, that the products in question are of the same type. In reality, however, products are still priced differently in different countries.
Purchasing power parity expresses the difference between the theoretical uniform price and the actual price in the respective country. Therefore, it is a good measure of how high or low the local cost of living is.
Now Let’s Compare the Cost of Living With the Income
Assuming that in one country the income is 20% higher and the cost of living is also 20% higher, you have gained nothing financially and are in the same position as those who have not emigrated.
The differences between the cost of living and income, on the other hand, are interesting.
Especially in countries with a low cost of living, homicide rates tend to be higher.
However, whether homicide rates are relevant depends very much on one’s way of life and also on the country.
In some countries, you may not notice much about crime as it tends to occur in other social circles.
In other countries, on the other hand, it is quite possible that a well-paid immigrant is the focus of the crime.
In other countries, the opportunities to save money are usually small. The money saved is saved for the next electricity bill.
In countries where people value squares more than stores, anyone who wants to sell has to pay a daily vendor fee. The rush is not as great as expected, but the vendors, who are mostly women, sell enough to put food on the table.
In low-income countries, single parents are particularly hard hit by cost increases.
Living in another country sounds quite tempting. Getting to know other places, people, and cultures is always exciting and helps us grow as people.
But whenever you’re a foreigner, whether you’re traveling or staying indefinitely, the first thing to consider is money.
It is not for nothing that there is the saying “who converts does not have fun”, because when the Latin American calculates how much his money is worth in Europe or North America, he usually gets discouraged and prefers not to spend.
However, there are still countries where the cost of living is cheaper than many countries in Europe.
Interesting data on the cost of living can guide us on where to travel or, if necessary, where to look for a new home.
To conclude
As already mentioned, our theoretical consideration has a great weakness in that higher average living costs or higher incomes do not automatically mean that one is also affected.
After all, as an emigrant, there is a high probability that you do not belong to the average society. Even looking for a job abroad is not always guaranteed success.
The reasons for emigrating can be varied. For example, the prospect of lower living costs, a better income, a better quality of life, or simply the need for a better climate.
If you compare countries with each other, you will certainly find countries to which it is financially worthwhile to emigrate and where you can improve your income situation.
On the other hand, whether you will be happy there is something very personal and depends on many other factors.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.