Discovering the World's Cheapest Places to Live: Budget-Conscious Expat Guide

Looking for cheap places to live in the world? Whether you’re planning early retirement, seeking a digital nomad lifestyle, or simply want to stretch your savings further, understanding global cost-of-living variations can be transformative. Recent analysis by GOBankingRates, using data from Numbeo’s comprehensive cost-of-living database and World Atlas geographical information, has identified 15 cities where your money goes significantly further than in the United States.

The methodology behind these findings is straightforward: each city’s affordability was scored against U.S. cost-of-living benchmarks (set at 100). A city scoring 33, for instance, means you’ll spend approximately 67% less on overall expenses compared to the American average. This scoring system incorporates four critical metrics: cost-of-living index (covering restaurants, transportation, utilities), rent index, groceries index, and local purchasing power—the last metric indicating how much goods and services locals can actually afford on typical salaries.

Asia’s Dominance in Budget-Friendly Living

The overwhelming majority of cheap places to live globally are concentrated in Asia, particularly South Asia. This region’s combination of lower labor costs, established expatriate communities, and developing economies creates ideal conditions for budget-conscious residents.

Indian Cities Lead the Affordability Rankings

India emerges as the ultimate destination for those seeking cheap places to live worldwide. Pune claims the top position with a cost-of-living index of just 24.8 and an exceptional local purchasing power index of 109.7—meaning locals have strong buying power despite low nominal prices. Delhi (24.5 index), Bangalore (29.3 index), Hyderabad (24.3 index), and Chennai (22.5 index) round out the top Indian representatives. Notably, Kolkata (21.6 index) and Ahmedabad (24.4 index) offer similarly attractive economics. Rent in these cities is particularly cheap, with indices ranging from 5.5 to 11.0, and groceries typically cost 23.5-30.8 on the index scale.

Pakistan’s Ultra-Affordable Urban Centers

Pakistan presents even lower nominal costs, though with trade-offs in local purchasing power. Karachi’s cost-of-living index stands at just 19.3, with remarkably cheap rent at 3.0 on the index. Lahore follows with a 19.5 cost-of-living index and 3.1 rent index. These cities represent the absolute cheapest options globally, though potential residents should research local conditions thoroughly.

Southeast Asia and China

Malaysia’s Kuala Lumpur (35.0 cost-of-living index, 11.8 rent index) provides a middle ground between ultra-cheap and moderately-priced locations. China contributes two cities: Wuhan (32.7 index) and Chengdu (32.2 index), both offering substantial savings compared to Western standards while providing more developed infrastructure than some South Asian alternatives.

Africa’s Emerging Budget-Friendly Hubs

Africa hosts two notable entries in the global cheap places to live rankings: Cape Town, South Africa (34.1 cost-of-living index, 16.2 rent index, but exceptional 88.6 purchasing power index) and Johannesburg, South Africa (35.5 index, 10.3 rent index, 91.4 purchasing power index). These cities offer the advantage of stronger local economies and higher purchasing power for residents, making them attractive for those seeking sustainability alongside affordability.

Understanding What Makes These Cities Affordable

The cheap places to live in the world share common characteristics: emerging or developing economies, lower labor costs, less established real estate bubbles, and often favorable currency exchange rates for Western expatriates. Importantly, affordability varies dramatically by neighborhood and lifestyle choices. Budget-conscious expats can live even more cheaply than index scores suggest by shopping locally, avoiding tourist-oriented establishments, and embracing local transportation rather than private vehicles.

Data Snapshot and Methodology Clarification

Based on 2024 data collected across the world’s largest population centers, GOBankingRates compiled this comprehensive analysis of cheap places to live globally. The cost-of-living index incorporates local goods, services, dining, transportation, and utilities. The rent index reflects typical residential accommodation costs, while the groceries index shows food purchase expenses. Local purchasing power indicates how much a typical local salary actually purchases, with higher numbers suggesting stronger economic positions for residents.

For those serious about relocating to cheap places to live in the world, consider factors beyond raw cost-of-living indices: visa requirements, healthcare quality, internet reliability, safety, climate, and quality of life metrics. While cities like Pune, Delhi, and Karachi offer extraordinary value, they require cultural adaptation and may lack some amenities common in Western nations. Southeast Asian alternatives like Kuala Lumpur provide better infrastructure while maintaining cheap living costs. African options like Cape Town balance affordability with cosmopolitan appeal.

The world’s cheapest places to live offer genuine opportunities for those seeking financial freedom, but thorough research and potential short-term visits remain essential before committing to relocation.