The Best Countries For Saving Money
Saving money is no small task, no matter where you are in the world. But which countries are the best and worst for keeping your money in the bank?
Saving money is no easy task, no matter where you happen to live in the world. After all, saving takes a significant level of financial planning, discipline and future thinking. But a number of other factors also need to be taken into account, with the primary one being the cost of living. If rent, groceries, and other demands on your finances are high, there is obviously little left to go into a savings account.
In other words; there are some countries that are far friendlier to your savings accounts than others, and make saving that little bit simpler. When your daily living needs eat up your monthly income leaving little else, an endless cycle is quickly fallen into, leaving residents wondering where they are supposed to find the funds to retire.
Cost Of Living Index
Numbeo has applied a cost of living index to countries across the world, taking into account accommodation costs, plus 50 commonly needed items from grocery stores, as well as Internet and phone bills, entertainment activities and various other factors. These prices are averaged, stacked up against the same prices across the world, and an index applied out of 100. 1 being the most affordable, and 100 being the least.
Canada as a base example has a cost of living index of 64.82, making it a red country. This means that the cost of living is among the highest in the world, making it a challenge to save any money. North America has a slightly higher 74.08, which says just about everything you need to know about living in the United States. These numbers are not as high as Australia however, with a cost of living index of a whopping 78.45. That gives Australia the second highest cost of living score in the world, behind only Norway, which has a score of a gobsmacking 99.8.
In comparison, Russia sits at 38.38, Brazil at 38.88, and South Africa at 34.75.
Best Countries For Saving Globally
The Times recently did a similar survey on the cheapest countries in the world to live in, aimed at offering prime retirement destination options to New Yorkers. Their system directly compared rent, consumer price indexes and grocery indexes to prices in New York City, with 50 of the most affordable countries in the world for retirement. Of course, the lower the costs of living, the easier it is to save, and the top 3 places to retire to all offered a cheaper alternative in every way.
Not surprisingly, given the cost of living index above, The Times ranked Cape Town, South Africa as the top most affordable place to live in the world. The rent was 87% cheaper than rent faced by those living in New York City, grocery prices 71% cheaper, and local goods and services 65.8% cheaper. Although living costs are estimated to be around $400 a month, the purchasing power of 26.9% higher than New York City puts it at the top of the list.
India was the second recommendation on the list, with the big eye opener being rent prices that were a stunning 95.2% cheaper than the average rent in New York City. A truly amazing fact to keep in mind when trying to keep money in the bank is a primary concern. The average living costs were put down as an average of $285, significantly cheaper than South Africa. But with a purchasing power ranked at 20% lower than New York, it sits in second place.
In third place we have Kosovo, located in Eastern Europe, bordering Serbia and Albania. Rent is an impressive 91.5% cheaper, but purchasing power is a significant 33.8% lower. The average monthly costs are around $324. As is obvious to see, this earns Kosovo a justifiable spot at number 3, and illustrates once again just how affordable some cities are when compared to others.