It is often advisable to put together a budget to track how you spend in order to properly manage your expenses and survive.
But following the results of this year’s GoBankingRates study, you could be better off if you moved to a different country.
Measuring each against prices found in New York City, GoBankingRates weighted and ranked countries based on these key affordability metrics: the local purchasing power index, the rent index, the groceries index, the restaurant price index and the consumer price index.
GoBankingRates made a list of the 50 cheapest countries in the world to live in. Here are the African countries that made the list.
This West African country, despite frequent terrorist attacks and corruption cases, is actually one of the cheapest countries in Africa. Rents are 86 per cent cheaper than in for instance New York and groceries are 64 per cent less.
It is also one of the countries that might be the best for taxes, according to the release. Oil currently serves as the country’s main source of foreign exchange earnings and government revenues.
Following the 2008-09 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Nigeria’s economic growth has since then been driven by growth in agriculture, telecommunications, and services.
Kenya is the economic, financial, and transport hub of East Africa. Its real GDP growth has averaged over 5% for the last decade, and the country’s governance system has been fairly stable.
As one of the cheapest countries to live and work, Kenya enables people to get the ample time to do what they love. You can go on a safari on Kenya’s vast savannahs, walk a sandy coast or climb the heights of Mt. Kenya.
People also have the chance to opt for affordable mini-buses known as boda-boda motorcycle taxi instead of the traditional vehicles that may take more fare.
The cost of living is 61 per cent cheaper than others and rents are 91 per cent lower.
Settling in Uganda means your rent is likely going to be 93 per cent lower than for instance living in New York.
Described by GoBanking as a money-smart place to live in, Uganda also gives some of the highest interest rates in the world on deposits of people.
In the world, it was 33, but in Africa, it was ranked 7th.
The North African country, which is one of the countries with the cheapest cost of living, houses exotic cities such as Casablanca and Marrakech. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents.
Morocco has taken advantage of its closeness to Europe and its low labour costs to work towards building a diverse and open economy that is market-oriented. In Morocco, rents are 89 percent lower and the cost of living is 63 percent less.
The middle-income emerging market has an ample supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors, as well as, Africa’s largest stock exchange.
South Africa, hitherto, was always in the first position but was taken over by Tunisia. It is still one of the cheapest countries to live in not only in Africa but the world.
The country has a high local purchasing power that is about 52 percent lower than in the States. South Africa, which is the largest producer of gold, platinum, and chromium does not joke with its tourism sector, as it continues to bring in more tourists to tour areas like Cape Town.
Prices on consumer goods and groceries, as well as rent are affordable.
Algeria’s economy is based on hydrocarbons that account for roughly 30% of GDP, 60% of budget revenues, and nearly 95% of export earnings.
It is the 10th-largest reserves of natural gas in the world and the 6th-largest gas exporter. The survey found that consumer goods in Algeria are relatively cheap.
Each person’s monthly costs average $400 in Algiers, excluding rent. The average for rent is just 6 percent of what is expected in other places like New York.
Living in Egypt is cheap. Its consumer goods and rent are cheaper as compared to New York. A one-bedroom in Cairo costs just $350 a month.
People can also get groceries at a discount of 77%.
When the January 2011 revolution began, the situation restricted economic growth in the country. Tourism and other manufacturing sectors also suffered. Things are beginning to normalize now.
Zambia, which is part of the top five cheapest countries in the world, has a cost of living that’s 54 percent lower. Even though its rents are one of the highest in Africa, this is counterbalanced by the country’s strong purchasing power, which is 1.26 percent greater.
Zambia was till 2014 one of the world’s fastest-growing economies with real GDP growth averaging roughly 6.7% per annum. But growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha.
This is the least expensive African country.
Rents are 94 percent cheaper compared to a place like New York, while consumer goods are also cheaper, making it a less expensive place to live in.
Exports, foreign investment and tourism are key to the country’s economy. Its major exports include food products, textiles and apparel, petroleum products, chemicals, and phosphates.
This, in addition to investments in education and infrastructure, powered decades of 4-5% annual GDP growth and improved living standards.