The Cheapest Place to Live

This blog started as an exploration of the Cheapest Places to Live in the world and I'm still continuing that quest but the blog has evolved into much more than just that. We're also looking at the Best Places to Live based on a variety of criteria - not just whether they are cheap. After all, would you agree the term 'cheap' is pretty subjective and relative to each individuals circumstances. From one perspective cheap may simply mean the least expensive place to live - lowest rent, lowest real estate cost - literally THE cheapest place but for most people that is an unrealistic measure and one that isn't very useful. When I write about and we as a community discuss the concept of living cheaply what we are really trying to look at is that whole bundle of objective and subject qualities that when taken together result in value. For me it's about a lifestyle that represents the best value. How can I get the most out of life and living for the least amount of money.

What is the Cheapest Place to Live?

To answer that question you first need to figure out what your true costs of living are. Sure some of those are pretty easy to figure out. Things like the cost of housing, the cost of food, the cost of utilities, etc. Now it's important to really develop a comprehensive list of your costs of living. Don't forget to look at insurance, fuel, transportation, education - you really want to brainstorm every single thing you purchase to maintain your quality of life. Pull out bank statements and credit card statements. Examine what you purchase daily, weekly, monthly, yearly and occasionally. It's a pretty straight forward project to accomplish.

How do you measure Quality of Life?

The second part of the analysis is a lot trickier and a lot more individual - it's the subjective measures of quality and of cost. But these subjective items often become the most important. I believe they actually are the most important things of all. So, what am I really talking about here? It's probably easiest to explain the concept by way of example. Let's say I want to find the Cheapest Place to Live in the United States. If I look solely at objective criteria I'm likely to end up somewhere north, somewhere cold, somewhere that not many people want to live. So, my rent may be cheap but what are the other non-monetary costs I'm paying for having that cheap rent? My health may suffer. I have to pay more for heating. My car will wear out faster, These are some of the subjective costs of living I need to take into consideration.

So, as you read this Blog and particularly as we examine the Quality of Life Index for 2011 I'm hopeful your mind and our discussion broadens and gets into some of these more interesting aspects of determining the best place to live - for you and for me.

For those who are following the discussion around our leading countries for quality of life tomorrow I'll get back on the trail and give you more information about our 4th best place for quality of Life, France.

Cheap Places to Live Abroad

As I read through the International Living Quality of Life Index for the best places to live in 2011 I can't help but be drawn to that one very important category - Cost of Living. It's such an important topic since the economic melt down. Retirees were sitting pretty and thinking they could settle down just about anywhere they wanted on the planet but then overnight it seemed their nest eggs disappeared or at the very least have been diminished to a great extent. It's really quite sad and when I hear people who should be retiring saying things like, "I don't know if I will ever be able to retire". It breaks my heart.

Now savvy and global thinking retirees aren't about to give up on their dream. In fact they were probably planning alternative scenarios for retirement many years before the collapse. And that's where this index can really come into play. Restricted budgets and income losses don't mean retirement has to be put on the back burner. It does mean finding the cheapest places to live has become a greater concern and a higher priority.

This is the fun, interesting and helpful part of having Quality of Life for each country broken down by nine different ranking categories. Let's revisit our list of the Best Places to Live based on average quality of life and determine the potential Best Places to Retire based and rank ordered by Cost of Living -

Cheap Places to Live Abroad

#1 - Hungary
#2 - The United States
#3 - Argentina
#5 - Portugal
#6 - New Zealand
#7 - Malta
#8 - Uruguay

#9 - Slovenia
#10 - Belgium

Of course we are talking about entire countries here so the data and the index once again can be a bit suspect and perhaps even misleading. The United States is the best place to live and has the second lowest Cost of Living according to the index. Now we know the U.S. does have a very low cost of living in some places. And, it has very cheap housing BUT it also has some of the most expensive real estate on the planet! It's a huge country so the averages can be quite misleading and will skew the results. Sure, you can live very cheaply in some very rough neighbourhoods in the U.S. You can live cheaply in some very cold and snowy places in the U.S. On the other end of the spectrum we have very small countries like Malta with a high quality of life score. But, in Malta the climate and cost of living is pretty consistent throughout the country. This is why quality of life really needs to be considered as a basket of items including such very important things like climate.