Get Cost Of Living Worksheet

Cost of living data includes the expenses incurred for food, shelter, transportation, energy, clothing, education, healthcare, childcare, and entertainment. A cost of living index tracks how much basic expenses rise over time and among different regions.

Average Cost of Living in California: $53,082 per year CategoryAverage Annual Per-Capita Cost in CaliforniaHousing and Utilities$9,972Health Care$8,501Food and Beverages (non-restaurant)$3,865Gas and Energy Goods$1,0391 more row • Mar 13, 2023

“A typical personal finance budget would call for spending 30% take-home pay on rent or housing expenses, 10% to 15% on food, and 5% to 10% on utilities,” Hao says. “These basic necessities that consume at least half of our paychecks are also what drive the cost of living.”

The cost of living is the total amount of money required to live in a certain area and cover your basic necessities. Expenses typically factored into cost of living calculations include housing, food and taxes. It may also include such expenses as transportation, health care, entertainment and education.

A COLA typically can be calculated as part of an annual compensation plan review. An employer should determine which price index best aligns with their employees' cost of living. If the chosen index rose 6% in the past year, employee salaries or hourly rates would be adjusted by a similar amount.

Cost of living is defined as the amount of money required to cover necessary expenses to maintain a certain lifestyle standard in a particular place and time. Necessary expenses can include housing, food, taxes, health care, clothing, education, entertainment and transportation.

The cost of living in Michigan is 3% lower than the national average. Housing is 13% lower than the national average, while utilities are 0% . When it comes to basic necessities such as food and clothing, groceries are around 1% higher than in the rest of the country, while clothing costs 1% higher.