What is the Secret to cut your spending by 50% or more?
What is the secret to cut your essential expenses by 50% or more? It turns out that it is not a secret at all, rather a common sense. If you want to cut your expenses by a substantial percentage, you should just move from a high cost of living (HCOL) area to a low cost of living (LCOL) area. The move could be between states or countries.
We moved from a HCOL area (New York – Long Island) to LCOL area (Istanbul – Turkey) over a year ago. This move reduced our essential expenses, such as groceries, utilities, transportation, eating out, family expenses, and healthcare, etc. I just wanted to quantify the reduction in cost so I compared our essential expenses between July’12-June’13 and July’14-June’14, below.
Jul’12 – Jun’13 (NY)
Jul’13 – Jun’14 (IST)
|Diff. ($)||Diff. (%)|
As you can see, our $4,692/month expenses dropped to $2,100/month, which is a nice %55.24 decrease. By the way, we did not change our consumption habits so there is not much of a difference as to what we bought, etc. I intentionally did not include the other costs (housing, etc.) in this analysis, but they are also cheaper in Turkey than New York.
Overall, the move has saved us money and has improve our quality of life.