Costs of Living
If you’re living on a budget (and if you’re not making over a million dollars a year, you should be living on a budget… and even then, depending), then it’s always a good idea to consider the costs of living. How much groceries cost and what you pay for utilities each month are examples of the costs of living, but what I’m going to talk about here is ways to think about the increase to your Cost of Living when you’re considering a big purchase, like a house or a car.
There are upfront costs to any purchase, which most people thing about, but what about the long-term costs? What about the day-to-day costs? Or the emergency costs?
Most people, myself included, don’t usually think about these things until they’re happening. You buy a car where you used to walk or take the bus, and all of a sudden that extra $200 you had every month is looking more like an extra $100 and the reason why (gas and maintenance) is not always immediately obvious.