The IP Cost of Living Index assesses more than 180 cities worldwide according to their respective living costs. It considers various factors, including the prices of various products and services, food, housing, automobiles, medical care, medical insurance, and college tuition. The index does not consider some costs, such as those associated with overseas travel or the price of furnishings. Nonetheless, there is a required minimum expenditure for clothing included in this. In each nation, one’s eligibility for certain costs, such as health insurance and university tuition, is determined by their immigrant status. Some nations provide their citizens with government-funded healthcare and education, whereas others do not.
The standard three-person family with middle-class income is used to calculate each city’s cost of living index. It is an estimate of the bare minimum a rich family should have to maintain a high standard of living in each of these cities.
It is essential to consider the cost of living from the city’s perspective instead of the country’s. Living in rural regions is significantly less expensive in many parts of the world than in urban areas. Compared to the national average, housing costs in some countries, such as the United States, are surprisingly low. The discrepancy, however, is staggering compared to the costs per square foot found in good neighborhoods in popular American cities.
In certain places, the cost of particular things, like housing or alcohol, is significantly higher than in other cities. For instance, Singapore imposes a significant tax on motor cars, while the real estate market in Monaco is among the most expensive in the world.
The data was collected in December in the year 2020. The following estimates the annual living costs for a family of three in the upper middle class.
Healthcare Expenses incurred by medical care are frequently partly met by the public healthcare system. This is connected to the immigrant’s initial status in each nation they lived in before moving there. Based on insurance for hospitalization, emergency evacuation, emergency transfer, a $0.5M annual maximum, and a $5,000 deductible, the yearly prices are quotations from private health insurance companies in different nations. They apply to a married couple that has one kid who is still a minor.
Living expenses include most things people regularly buy, such as food, clothing, restaurants, transportation, fuel, and utilities. These don’t include residential areas. The figures were derived from a poll conducted by Numbeo regarding the cost of living.
Lunch or dinner in restaurants: 50% of the time
Seeking economical restaurants: 20% of the time
How frequently is coffee taken outside the home: low
For active spenders, going out (to the movies, nightlife, etc.): an average of three times a week.
Smoking: 0.5 pack every day in a household
Alcoholic drinks: low intake
Home food: Asian food
Public transportation: no
Memberships (Sports/Gyms): no
Travel and Holidays: none
Shopping for clothes: Moderate
The rent was determined using data from Numbeo’s Property Prices and was based on the typical monthly cost of renting an apartment in the city center with three bedrooms. Significant differences may exist between neighborhoods in the central part of the city.
The IP University Index is used to calculate the costs of attending university. These show the annual cost connected with attending an undergraduate program at the institution in each city with the highest ranking possible.
Source: The University Expenses were collected from each institution’s own website as the source (see the IP University Index).