What are the cost of living?
life costs are the amount of income required to ensure a fair standard of living. At the heart of this standard it is necessary to provide food, clothing and shelter. In many cultures, other items are also considered a necessity and are included in the calculation when attempting to determine the average cost of living in this area.
Assessment of current living costs in a given area is important for many reasons. For households, identification plays how much money will need to ensure basic needs in the task of deciding to work in a specific industry. Ideally, one full -time job is sufficient to pay a monthly rent or a mortgage, coverage the cost of public services, buy meals for three meals a day and buy clothing for household members. The cost of living in some places, especially metropolitan areas, is increasingly causing it necessary for more than one individual in the household to ensure employment or for one personAdditional source of income in addition to full -time work.
municipalities are considering living costs when involved in urban planning. Understanding what is worth maintaining a fair standard of living in this area makes it possible to identify the nature and scope of services provided by the local administration agencies. This number also helps municipalities to determine tax structures that relate to turnover tax on purchases such as food and gasoline, and even how to create a real estate tax schedule. Even problems such as planning housing development or designing incentives to attract new businesses to the area must enable current living costs and how the residents would respond to these opportunities.
For people, it is not unusual to look for places where living costs would allow more benefits based on the amount of income they generate. For example, a few retirement may decide to live in a smaller town where they livedThe cheaper, food is cheaper and taxes are lower. This allows their pension income to cover all the requirements and still have a one -time income for activities and purchases that are desirable, but it is not necessary. Similarly, a young person who is just beginning to be established in a career often decides to share living space with others as a means to maintain life spending to a minimum and yet have a decent place to live.
life costs are not a static figure that remains in the same year after year. Shifts of the cost of basic life needs results in a change in the amount of income needed to maintain a given standard. During the period of inflation or recession, households must make adjustments based on an impact that these economic conditions have on the cost of the requirements and impact on income flows.