Cost of Living

AAA

DEFINITION of 'Cost of Living'

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare. Cost of living is often used when comparing how expensive it is to live in one city versus another.

INVESTOPEDIA EXPLAINS 'Cost of Living'

Cost of living can be a significant factor in personal wealth accumulation because a smaller salary can go further in a city where it doesn't cost a lot to get by, while a large salary can seem insufficient in an expensive city. According to Mercer's 2009 Cost of Living Survey, cities with a high cost of living as of 2009 included Tokyo, Osaka, Moscow, Geneva, Hong Kong, Zürich, Copenhagen and New York City. Other American cities with a high cost of living as of 2009 included Honolulu, Los Angeles, Washington, DC, and San Francisco.

RELATED TERMS
  1. Poverty

    A state or condition in which a person or community lacks the ...
  2. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
  3. Lesser-Developed Country - LDC

    A country that is considered lacking in terms of its economy, ...
  4. Standard Of Living

    The level of wealth, comfort, material goods and necessities ...
  5. Standard Of Living Bubble

    The concept of consumers living beyond their means for an extended ...
  6. Marginal Rate of Technical Substitution

    The rate at which one factor has to be decreased in order to ...
Related Articles
  1. Where is the cost of living lowest in ...
    Personal Finance

    Where is the cost of living lowest in ...

  2. What is the cost of living difference ...
    Home & Auto

    What is the cost of living difference ...

  3. What is the cost of living difference ...
    Home & Auto

    What is the cost of living difference ...

  4. What is the cost of living difference ...
    Home & Auto

    What is the cost of living difference ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center