How to Calculate Your Personal Cost of Living

1. Begin with Giving

For believers, giving isn’t just another line item. It’s the first priority—an act of worship and trust in God’s provision.

2. Add Savings Goals

Whether building an emergency fund, saving for retirement, or preparing for a large expense, set targets you can track monthly.

3. List Your Expenses

Expenses fall into three categories:

• Fixed: Rent, mortgage, insurance, subscriptions.
• Variable: Groceries, gas, utilities.
• Irregular: Property taxes, holiday gifts, car repairs. Spread these out by assigning a monthly average.

When you add it all up, you’ll have a clear picture of your total monthly needs—your true cost of living.

If your expenses exceed your income, don’t panic. The process reveals problem areas so you can adjust—cutting back on non-essentials, reevaluating fixed costs, or pausing discretionary spending. Stewardship isn’t about guilt—it’s about faithfulness.

Living With Clarity and Faith

Tracking your cost of living isn’t just a budgeting exercise. It’s about living intentionally, aligning every dollar with God’s purposes. Needs will shift, life will happen, but clarity allows you to walk with confidence, generosity, and purpose.

So, do you know your personal cost of living? If not, there’s no better time to find out.

On Today’s Program, Rob Answers Listener Questions:

• I’m 67 and single. Should I start taking Social Security now, or wait until age 70 for the larger benefit? I’m also worried about whether Social Security will even be around in the future. On top of that, I worked many years for a nonprofit that provided housing, so my reported income was low. Now I’m earning more—will that help increase my Social Security amount?
• I’m retired and already drawing Social Security, but I also have earned income from pastoring two rural churches. With that income, am I allowed to contribute to a Roth IRA or another type of retirement account?
• My husband and I don’t have much debt besides our mortgage and a 0% interest loan we used for a heat pump. Should we pay off the heat pump early, add more to our emergency fund, or focus on paying down the mortgage?
• My online savings account was compromised, and someone tried to transfer money out. What steps can I take to protect myself when using online accounts? And do you recommend using a password keeper?

Resources Mentioned:

• Faithful Steward: FaithFi’s New Quarterly Magazine (Become a FaithFi Partner)
• 1Password | LastPass
• Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App