Beyond the Budget:
How Cost of Living Influences
Life Satisfaction (Quality of life)
Last updated on August 27th, 2025 at 12:25 pm
Here, we will cover how to quantify your life satisfaction needs (a.k.a. quality of life or happiness needs) and learn how to find which locations best meet those needs. Sounds easy right? It can be, but you have to do some work to get the right outcome.
The good news is, you don’t need a big budget to find a perfect place for you. In fact, the reverse is can be true, many today wish to return to a simpler life, it’s up to you to define what and where you can be fulfilled the most in the life you have.
To effectively compare quality of life across international destinations, it is necessary to start with sources that prioritize factual information over personal anecdotes. Websites that focus on empirical data regarding cost-of-living, healthcare quality, crime rates, and education systems are invaluable. Engaging with multiple sites will allow you to identify consistent trends and insights, which can help mitigate the risk of relying on any one source’s potentially biased viewpoint.
It is advisable to approach platforms that emphasize individual experiences, as these narratives often highlight subjective feelings rather than objective realities and can lead to misleading conclusions about a location. Similarly, statistical comparisons should be approached with caution; such data can be riddled with biases and may not accurately reflect the true living conditions in a specific area.
Fortunately, there are reputable resources available that provide detailed analyses of costs and lifestyles in various countries. To make this information truly useful, clarify what aspects of life are most important to you—whether it be housing affordability, job opportunities, cultural offerings, or healthcare access. By honing in on your priorities and cross-referencing multiple reliable sources, you can develop a well-rounded understanding of each prospective location, empowering you to make informed decisions about your future abroad
When exploring cost comparison websites, it’s essential to recognize that accuracy can vary significantly. These platforms often rely on user-submitted data from locals and visitors, which may lead to discrepancies. Some sites have superior data quality due to a higher volume of recent contributions. To ensure the reliability of the information, conduct further research to validate any cost estimates.
Example of sites that compare living in multiple locations:
https://www.numbeo.com/cost-of-living/comparison.jsp
https://www.expatistan.com/cost-of-living
Recommendation: Avoid sites that primarily cover only one country or are presented as where to live aboard if you are from a specific country. These sites can not fairly compare living aboard due to unintended bias. Additionally, be weary of who sponsors the site… these can have a conflict of interest.
When evaluating cost of living comparisons between different locations, it is crucial to remember that these assessments are often generalized and may not accurately reflect your individual lifestyle. Websites that provide such data typically rely on averages and statistical analyses, which can lead to biased conclusions. For instance, a statement indicating that location X has a cost of living that is 144% higher than location Y does not take into account personal factors such as your income, spending habits, and specific needs.
Your lifestyle priorities, interests, and requirements are unique to you, and they play a significant role in determining what constitutes a high or low cost of living. Therefore, while these summaries can serve as a starting point for research, it is essential to conduct a more personalized analysis that considers your own circumstances before making any decisions based on these figures.
Since we’re talking about western citizens moving to Thailand. I think it’s widely acknowledged that Thailand is about 90% cheaper cost of living for most Expats, while the quality of life that is equal or higher but keep in mind that your personal values can change this. Maybe your priorities make Thailand 20% cheaper or 400% cheaper. That is a number you need to define by identifying your lifestyle priorities and the costs associated in the two locations. You can contact us for some additional guidance on this if needed.
A guide to find the true Cost of living at a location
Comparing Cost of Living: A Step-by-Step Guide
When considering a move or retirement abroad, the cost of living is a crucial factor that requires careful analysis. This is closely tied to the quality of life you can have at this location. This guide outlines a systematic approach to help you accurately compare your current living expenses with those at potential new locations.
Step 1: Identify Your Top 10 Expenses in Your Current Location
Begin by pinpointing your top ten expenses. These often include:
1. Housing (Mortgage/Rent)
2. Insurance (Health, Home, Auto)
3. Food (Groceries and Dining Out)
4. Utilities (Electricity, Water, Gas, Internet)
5. Transportation (Car Payments, Gas, Public Transit)
6. Healthcare (Medical Expenses and Insurance)
7. Taxes (Income, Property, Sales)
8. Travel (Vacation and Commuting Costs)
9. Education (Tuition and Supplies if applicable)
10. Entertainment (Subscriptions, Leisure Activities)
Organize these expenses into an Excel spreadsheet or on paper. Ensure that you record accurate figures by referencing your actual bills rather than estimating. This diligence will help mitigate biases created by prior experience and assist in making valid comparisons.
It’s essential to detail costs associated with transportation. Remember, this category isn’t limited to just car payments; it also encompasses loan interest, insurance, registration, maintenance, fuel, parking fees, and public transport costs. For tax-related expenses, consider all applicable taxes including income, property, sales, and various service-related taxes which can contribute significantly to total expenditure.
Step 2: Identify the same 10 Items and their costs at your potential Retirement locations
Once you have a clear picture of your current expenses, research similar costs in your desired retirement location. Notably, many expatriates find substantial savings when comparing costs in countries like Thailand.
For instance, common findings may reveal that taxes, healthcare, transportation, and utilities could be over 90% cheaper than in Western countries while still providing comparable or even superior services.
Keep in mind that the term “cost” encompasses more than just the purchase price. Consider the following factors:
– **Accessibility**: How convenient is it to purchase items? Is there a significant difference between a short walk and a lengthy car drive?
– **Tax Implications**: What are the local sales taxes? These rates can vary drastically.
– **Quality of Products**: Are you obtaining fresh, locally-sourced products, or processed alternatives?
– **Supply Chain Dynamics**: Are there potential hurdles in accessing specific goods?
– **Transportation Costs**: Assess how much it will cost you to procure items.
Step 3: By comparing these aspects diligently, you may unearth surprising insights that facilitate your dream of living abroad.
Additionally, leverage tools like retirement planning calculators to further refine your financial picture. This combined approach will equip you with a comprehensive understanding of your potential expenditures, empowering you to make informed decisions for your future.
In conclusion, the cost of living analysis not only clarifies financial obligations but also opens the door to enriching your entire life in a new environment.
Key Point:
In today's world, a location with a lower cost of living = Higher quality of life
