The place in which you live can significantly impact your financial situation. The cost of living differences, even just within the U.S., vary greatly. Some of the most expensive cities in the U.S. are San Francisco, Washington D.C., Chicago, Los Angeles, Seattle, and New York City. Currently, NYC is the most expensive city in the United States (ranked 12th worldwide), while Pittsburgh is the least expensive city in the U.S.

Over the last few years, U.S. cities have dropped in their worldwide rankings because of the depreciation of the dollar against European, Canadian and Asian-Pacific currencies. Consequently, on an international note, Tokyo, Moscow, and London rank the top three most expensive cities in the world, primarily due to these exchange rates. The three least expensive cities of the world can be found in Asuncion, Paraguay; Montevideo, Uruguay; and Santo Domingo, Dominican Republic.

The cost of living calculations themselves are found by calculating a sum of groceries, one month of rent, and other living expenses such as utilities, entertainment, and transportation - all standard estimates for average comparison in various cities. The local currencies also greatly affect the cost of living. Financial problems can arise when you live in a more expensive city, but do not make "living wages" that are sufficient for that city/area. If you are considering making a major move, make sure that your job provides enough money to cover the living expenses in that area - it matters!