Estimating Cost of Living: Good Things to Know for Moving and Everyday Life

Cost of Living is something that affects everyone and also something that is very susceptible to change. Being able to estimate the cost of living and spot out key identifiers is a great way to determine if moving to an area will be good on your pocket book. Also you can use some of these indicators to bargain with your current boss for a raise.

10. Grocery Stores
When you are thinking of moving one of the first places to look for an estimate of living costs is the local grocery stores. Just by browsing through and writing down prices of the essentials like milk, bread, produce (keep in mind growing seasons), eggs and meat, you can determine if you are moving to a similar area or one that is more pricey. Also check out the caliber of people doing their shopping, I am not saying you can judge a book by its cover but you can get a feel for people as a group. Try not to focus on the price of convenience items like pop, cookies, ice cream and frozen foods. These items tend to have higher prices in general because of the frequent sales offered.

9. Gas Stations
With the price of gas going through the roof, scoping out the local fill ups is essential. When you are driving around looking at houses or whatever, jot down the prices at various stations. Keep in mind that different chains are usually higher so be sure to see many different stations. By comparing these prices to the current national average as well as what you are used to paying it will help to paint a picture of the living cost.

8. Housing Market
No doubt you will check out home prices when looking to move to an area. So when you are doing this, check out your local MLS for the prices of comparable homes. You might be in for sticker shock if it has been a while since you were home shopping, but by comparing you will be able to see the current difference. Also see if you can find the turn around time for home sales to get a feel for the local economy.

7. Cost of Living Calculator
One of the best ways to see the difference is by looking at black and white numbers. CNNMoney has an easy calculator that you can use to see what you would need to make in the city you are moving to in order to sustain the same lifestyle money wise. The calculator only works for popular urban areas, but is a good estimate. Keep in mind that this only estimates how much more or less you will spend and need to make, it does not take into account different neighborhood living costs, but rather averages the city as a whole.

6. Remember CPI
A good thing to keep in mind is CPI, one of the major factors on inflation. CPI helps to determine what a dollar will be worth tomorrow. This will help you to estimate what your salary will be worth in the future. CPI is a great thing to show your boss when asking for a raise. You can illustrate to them that the raise they previously gave you is no longer worth what it was. Check out aier.org for the simple calculator.

5. Make Friends
The best way to get a first hand look at what it takes to live in an area is to talk to the locals. Check out parks and restaurants to find friendly people who will give you an accurate account of the overall cost. Don't expect people to get into their financial situation with a stranger, so don't ask them personal questions. Ask things like, "Is this a generally inexpensive place to live?" or "Do many people struggle with the cost of things around here?" Also remember to get a good census so you can average out the totally positive people with the totally negative responses.

4. Use Employer Resources
When trying to get you to relocate, employers generally offer you many tools to evaluate the thought. Take advantage of them. Just because your employer gives you the tools does not make them biased as long as you use them with an unbiased eye. Take a look at the new benefits package. Are the insurance costs higher or lower; is the commuter benefit different and what is the state tax? All of these things will be indicators of what it will take.

3. Schools
Take a tour through the local schools, both public and private; faculty members should be excited to have more students in the area. If they are not it may be an indicator that the schools are over-crowded and you may have to take into consideration the cost of private schools. Look at how well the building is kept, are their newer supplies and furniture, how are the students dressed? Both of these can give indication to economic conditions as well as

2. Cost of Moving
Be sure to take the cost of getting to where you are going into consideration as it will impact the overall cost for your family. Even if you are just looking at new houses, the new utility bills, any appliances you will need to purchase and the new tax zone you may be entering will all play into the cost to live in a new area.

1. Crime Rates
While you want to make sure your family is safe, this is not the only reason to check into crime rates. Crime rates can affect your insurance for you cars, home, life and other policies you may need to update. Keeping these increases or decreases in mind will allow you another perspective on keeping your family safe.

Most of these factors will be useful for both relocators and those simply wanting a cost of living raise. These will also help people to look at their current living situation to determine if some adjustments are necessary to achieve goals.