South Africa has topped a global list by TIME Magazine as the cheapest country to live in.
TIME Magazine was originally an American weekly news magazine published in New York City. It was founded in 1923 and for decades was dominated by Henry Luce, who built a highly profitable stable of magazines.
Since then the publication has grown to cover Europe, Middle East, Africa, Latin America, Asia and the South Pacific which covers Australia, New Zealand and the Pacific Islands.
The title has the world’s largest circulation for a weekly news magazine, and has a readership of 26 million, of which 20 million are based in the United States.
The publication recently released a list of the ’50 Cheapest Countries to Live’ where South Africa landed at the number one spot!
Aimed at the American market, TIME suggested that with the American dollar being so strong compared to other currencies, moving or retiring abroad could be a smarter strategy to stretch a retirement savings further.
To find the cheapest countries to live in, the publication used ‘GoBankingRates’ statistics which ranked nations by four key affordability metrics:
- Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more.
- Rent index: Compares typical rental prices in the country to New York City.
- Groceries index: Compares typical grocery prices in the country to New York City.
- Consumer price index: Compares costs of local goods and services — including restaurants, groceries, transportation and utilities — to New York City.
And the stats are quite interesting… even among the 50 cheapest countries, rent is at least 70% cheaper than rent in New York City, groceries are at least 40% cheaper, and consumer goods and services cost less by 30% or more.
South Africa topped the list as the number one cheapest country to live as the statistics showed the vast difference between American prices versus the South African Rand.
- Local purchasing power is 26.9% higher
- Rent is 87.5% cheaper
- Groceries are 71% cheaper
- Local goods and services are 65.8% cheaper
TIME went on to explain some of the reasons why South Africa would be the cheapest country to live in…
South Africa is the cheapest country to live or retire. It’s also the world’s largest producer of platinum, gold and chromium, which goes far to enrich the country and its economy.
This resulted in a local purchasing power that’s significantly higher than what New Yorkers face, which is the most favorable factor that puts South Africa at No. 1.
Along with a higher local purchasing power, South Africa also offers lower prices on consumer goods and groceries, and rent costs that are typical of the 50 cheapest countries. In the major city of Cape Town, for instance, monthly expenses total just under $400 while the average rent costs are reflected by the typical price to rent a one-bedroom in Durban of around $280 a month.
Here are some of the other countries that made the list:
- South Africa
- India
- Kosovo
- Saudi Arabia
- Kazakhstan
- Zambia
- Oman
- Paraguay
- Czech Republic
- Macedonia
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