How do I calculate the average cost of living?

average living costs are typical living costs that may include a number of basic factors. Sometimes, when you are considering a possible change in your finances, it may be useful to have an idea of ​​your current expenses. The average finding not only will help you understand current expenses, but also indicates what will probably be in the near future. For this value, the actual living costs of a fixed period of time should be determined, then distributed by the number of months to determine the average.

To calculate the average cost of living, first create a list of all your typical monthly accounts. Write down all the main, obvious expenses such as rent or mortgage, public services and car payments. Include other needs such as gasoline, food, insurance and clothing. Include each of your monthly expenditures, even if they are not needs such as magazine subscriptions, entertainment costs and charity gifts.

Group all your expenses togetherWithin a month, so when you add everything together, you have the total number you spent on all your combined expenses. To determine the average cost, it is best to have data for at least three months, but if you wish you can use more. The more months you use, the more reliable your diameter will be.

Add the total number of months and make the number of months that the number represents. This gives you your average life expenditure for one month. For example, if you add total living costs for 12 months, you will have real expenses for the whole year. Distribute this number by 12, the number of months involved to get the average cost of one month.

The cost of living is a tendency to vary well according to the region and you can also determine the average living costs of another area by exploring costs. Collect the same type of information that the useful use of your personal average lifeInstead of finding them over time, you diameter the numbers from several sources for each cost category over time. Use newspapers from a given area, often occurring online or in the library, to explore the cost of renting, food prices and other expenses.

Look for a number of costs such as three different prices for an apartment with two bedrooms. Add each type of cost together and divide yourself with the number of resources. For example, to determine the average cost of a two -room apartment, find the cost of renting three such units. Look for a high figure, a low figure and one somewhere in the middle. Add them all together and then earn the total number by three to get the average cost of an apartment with two bedrooms in this area.