**We all know the cost of living has risen this year, but do you know what your *personal* cost of living is?**

It’s the money you need for your monthly expenses, plus a few other expenses that only come due from time to time.

Due to inflation, your expenses are higher today than they were a year ago. We’ve all paid higher prices at the gas pump and the grocery store, and in lots of other places.

The federal government issues a report each month on the overall cost of living. While that report is helpful in some ways, it doesn’t tell you anything about you and your household. What you really need to know is your personal cost of living. That is, how much does it cost each month to put food on your table, keep a roof over your head, and pay other expenses?

Knowing your personal cost of living can help you construct a realistic “spending plan” or budget, one that matches the reality of your cost of living and still has some cushion built in for other important financial obligations.

We recommend using the **[FaithFi App](https://www.faithfi.com/manage)** for this, but you can also calculate your cost of living with pencil and paper.

**First, write down your monthly *giving*.**

For a Christian, giving should be a priority, so make that first on your list. Next, put down how much you’re *saving* each month for general emergencies. Carve those two areas out upfront: giving and savings.

**Now, start a separate column for your various living expenses.**

Begin by listing all your fixed expenses. That would typically include things such as your mortgage or rent payment, a car payment if you have one, and any bills or debts for which you pay the same amount each month.

For bills with varying amounts each month, you’ll need to calculate monthly averages. To do that, get the last 12 months’ worth of those bills. For each account, calculate the total yearly cost, then divide by 12 to get a monthly average. Then list those monthly averages in the same column with the fixed expenses that you’ve already written down.

You’ll also need to figure out and write down your monthly average for transportation costs, including gas and, if applicable, subway or bus fare.

**Next, take into account things that occur only every so often, such as car and household repairs.**

Look back over the past year and figure out a monthly average for those items too. For example, if you had a car repair this year that was $1,200, that works out to an average of $100 a month.

Also, think about regular bills that come due only once or twice a year, such as property taxes and insurance payments. Calculate monthly averages for those too and add them to your list.

**There’s one more thing to include. You need to take account of your gift-giving.**

Total up what you spend on gifts over a year, including Christmas,, and divide it by 12 for a monthly average.

Here’s the easy part. Simply add up all your fixed expenses and the various monthly averages for variable expenses. The total is an estimate of your average cost of living.

Now, because it’s an average, the amount won’t match your actual spending in any given month, but it’ll give you a good idea of your monthly needs.

**Finally, take that monthly cost of living figure and add in the giving and savings amounts you listed earlier.**

If that total exceeds what you’re bringing in, you know you need to cut expenses somewhere because your outgo is exceeding your income.

With a new year just around the corner, this is a great time to go through this little exercise of figuring out your cost of living so that you can adjust your budget accordingly for 2023.

**Doing the calculations will require a little effort on your part, but what you learn about your personal cost of living will help you make the most of what you have in the year ahead.**

You can also **[listen](https://www.moneywise.org/search?q=Your%20Personal%20Cost%20of%20Living&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)** to the related podcast on this topic.

FaithFi

Articles

We all know the cost of living has risen this year, but do you know what your personal cost of living is?

MANAGE | Sep 11, 2025

Your Personal Cost of Living

By: Joseph Slife

Where Faith Meets Finance

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