Understanding Your Lifestyle Score
Last updated: January 9, 2026
The Lifestyle Score is a comprehensive index (0-100) that helps you understand whether your income is sufficient to live comfortably in a given country. Unlike simple income comparisons, this score considers multiple financial factors to give you a more complete picture of your financial situation.
This score is calculated using a weighted formula that evaluates four key dimensions of financial health: housing affordability, cost pressure, disposable income, and basic lifestyle comfort. Each factor is weighted based on its importance to overall financial stability.
How the Score is Calculated
1. Housing Affordability (30% weight)
Housing is typically the largest monthly expense, so it receives the highest weight in the calculation. This factor compares your monthly rent costs to your net income.
- Rent below 25% of income: Excellent score (30 points) - Your housing costs are very manageable
- Rent 25-35% of income: Good score (20 points) - Within a reasonable range
- Rent 35-50% of income: Acceptable score (10 points) - Higher than ideal but manageable
- Rent above 50% of income: Poor score (0 points) - Housing costs are consuming too much of your income
A common guideline suggests keeping housing costs below 30% of net income, though this is a general reference point, not financial advice. Your actual situation may vary based on other expenses and priorities.
2. Cost Pressure (25% weight)
This factor measures how much of your income goes toward all monthly expenses combined. Lower cost pressure means more financial flexibility.
- Costs below 60% of income: Low pressure (25 points) - Significant room for savings and discretionary spending
- Costs 60-80% of income: Moderate pressure (15 points) - Manageable but less flexibility
- Costs 80-95% of income: High pressure (5 points) - Very little room for unexpected expenses
- Costs above 95% of income: Critical pressure (0 points) - Living paycheck to paycheck
When total costs consume most of your income, you have little buffer for emergencies, savings, or unexpected expenses. This creates financial vulnerability.
3. Disposable Income (25% weight)
Disposable income is what remains after covering all essential costs. This money can be used for savings, investments, emergencies, or discretionary spending.
- Disposable income above 40%: Excellent (25 points) - Strong financial position
- Disposable income 20-40%: Good (15 points) - Healthy savings potential
- Disposable income 5-20%: Tight (5 points) - Limited savings capacity
- Disposable income below 5%: Negative (0 points) - Little to no savings possible
Higher disposable income provides financial security, allows for building emergency funds, and creates opportunities for future investments or goals.
4. Basic Lifestyle Comfort (20% weight)
This factor assesses whether essential costs (housing, food, transport, healthcare) are reasonable relative to your income.
- Essential costs below 70% of income: Comfortable (20 points) - Essentials are well within your means
- Essential costs 70-85% of income: Manageable (10 points) - Essentials are covered but tight
- Essential costs above 85% of income: Strained (0 points) - Essentials consume most of your income
When essential costs are too high relative to income, you may struggle to cover basic needs consistently, leaving little for savings or quality-of-life expenses.
What Your Score Means
80-100: Very Comfortable
Your income comfortably covers all expenses with significant savings potential. You have substantial financial buffer for emergencies, investments, and discretionary spending. This score indicates a strong financial position with room for both current comfort and future planning.
60-79: Comfortable
Your income covers essential costs with room for savings and moderate discretionary spending. You should be able to maintain a comfortable lifestyle while building financial security. This range suggests good financial health with manageable cost pressure.
40-59: Tight but Doable
Your income covers essential costs, but savings and discretionary spending are limited. You may need to budget carefully and prioritize expenses. Consider ways to increase income or reduce costs. This score indicates financial stress but manageable circumstances.
0-39: Financial Risk
Your income may not fully cover essential costs, or leaves very little room for savings and emergencies. This situation may be financially risky and unsustainable long-term. Consider increasing income, reducing costs, or exploring alternative living arrangements. Professional financial advice may be helpful.
Understanding the Limitations
The Lifestyle Score is an estimate based on average market data and should not be considered a guarantee. Several factors can affect your actual experience:
- Location variation: Costs can vary significantly by city, neighborhood, and even street within the same country
- Lifestyle choices: Your personal spending habits, preferences, and priorities will affect actual costs
- Family size: The score is calculated for a single-person household; families will have different cost structures
- Economic changes: Inflation, currency fluctuations, and economic conditions can change costs over time
- Tax variations: Actual tax obligations may differ from estimated rates based on your specific situation
Use the score as a starting point for your research, but always verify costs through local sources and consider your personal circumstances before making financial decisions.
Common Questions
Why is housing weighted so heavily (30%)?
Housing is typically the largest single monthly expense for most people. When housing costs are too high, it creates financial stress and limits your ability to save or handle other expenses. Keeping housing affordable is fundamental to financial stability.
Can I improve my score by reducing costs?
Yes, reducing costs can improve your score, but the impact depends on which costs you reduce. Reducing housing costs (the highest weighted factor) will have the most significant impact. However, be realistic about what costs you can actually reduce without significantly impacting your quality of life.
What if my score is low but I have savings?
The Lifestyle Score evaluates your ongoing monthly financial situation, not your total assets. If you have significant savings, you may be able to supplement your income or use savings to cover shortfalls. However, relying on savings to cover ongoing expenses is not sustainable long-term. The score helps identify when your income alone may not be sufficient.
How often should I recalculate my score?
Recalculate your score when your income changes, when you're considering moving to a different location, or when significant economic changes occur (inflation, currency fluctuations). It's also useful to recalculate periodically to ensure your financial situation remains healthy as costs and circumstances change.
Is a higher score always better?
Generally, yes—a higher score indicates better financial health and more flexibility. However, the score is just one tool. Consider it alongside your personal goals, lifestyle preferences, and long-term plans. Sometimes, accepting a slightly lower score might be worth it if it aligns with other priorities (like location, career opportunities, or quality of life factors).
Next Steps
Now that you understand how the Lifestyle Score works, you can use it to make more informed decisions about where and how to live. Remember:
- The score is an estimate, not a guarantee
- Always verify costs through local sources
- Consider your personal circumstances and priorities
- Consult with financial professionals for advice tailored to your situation
- This is not financial advice—use it as a research tool
Calculate Your Lifestyle Score
Use our calculator to see your Lifestyle Score for any country and income combination.