How much money do you need to live in Italy?

How much money do you need to live well in Italy? This is a crucial question to understand how much is needed each month to secure yourself a good lifestyle.

The answer is not unique because it varies depending on each individual’s spending levels. Expenses, in turn, differ considerably both based on where you live - generally speaking, living in the North costs more than living in the South, living in a big city costs more than living in a small village - both on the basis of family composition - a family of four spends more than a single person.

Given the data in hand, however, it is possible, in broad terms, to establish how much money one needs to live well in our country.

How much money do you need to live well in Italy?

To understand how much money you need to enjoy life without too many worries in Italy you need to know two crucial factors:

• the average cost of living in the area where you live
• the salary necessary to comfortably cover all expenses.

Attention: the data available (and reported below) are to be considered exclusively indicative since the prices of goods and services vary from area to area and because what affects "living well", an exquisitely subjective concept, is the lifestyle of each one.

The first useful data to know is the average cost of living divided by Region, which tacitly indicates how much money is needed each month to cover expenses at a minimum. The indicator, shown below, is divided into the average cost of living with rent or mortgage and the average cost of living without. Both include estimated monthly expenses for food, utilities, and transportation.

However, arriving at the end of the month with 0 euros saved, not even in a small emergency fund to deal with any unexpected events, is not a desirable situation. Especially if the goal is to "live well", as intense as allowing yourself to indulge yourself and being able to cope with unexpected expenses, such as the car that breaks down or the washing machine that no longer works, without any problem.

We then compare the aforementioned data with the average salary for each Region, to understand if and how much the monthly income from work is capable of covering the estimated expenses.

Source: LivingCost.org

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On average, in Italy the net salary is €1,540, in light of a monthly cost of living of €1,300 and €652 for a single person who pays the mortgage or rent, net of mortgage/rent expenses.

For a family of four, however, the average costs with rent/mortgage in Italy amount to €3,209 per month (€2,046 without mortgage/rent), for an income from work of €3,100 if both parents work. It seems clear that, on average, a family that has to pay the mortgage or rent in Italy runs a deficit of over €100 per month. This data should be understood as a national average and therefore not valid for all Regions.

By subtracting the two different average living costs from the average net monthly salary, we obtain the amounts potentially saved each month.

If by living well we simply mean being able to deal with unexpected expenses and little else, even a saving of €300 a month may seem sufficient. If, however, you want to allow yourself to indulge in some whim once in a while (the latest generation smartphone, a designer bag, often going to a restaurant...) and one or two holidays a year, it is estimated that the savings monthly must exceed at least €600/700.

Attention: the cost items that make up the average cost of life expressed by the data source are to be understood as an aggregate of various third-party sources and do not specify the exact expense items considered in the total calculation.

But what does “living well” mean?

The answer to the question “How much money do you need to live well?” varies considerably from person to person, as it depends not only on one’s needs, but also on desires and, more generally, on personal circumstances. However, we have identified some factors that can help us define what it means to have a stable and secure financial situation.

A crucial role is played first and foremost by the concept of financial security, or the ability to cover basic expenses, such as food, housing, clothing, and medical expenses. It’s not just about surviving, but about living without the constant worry of not being able to meet these basic needs. Here the creation of an emergency fund plays a fundamental role, useful for dealing with unexpected events without compromising one’s economic stability.

Another aspect to underline linked to the concept of living well is linked to the ability to plan for one’s future, a luxury - data in hand - for many Italian families. There are few Italians who manage to accumulate sufficient savings to guarantee a peaceful retirement. In fact, it is not enough to live in the present, it is also necessary to prepare for the years to come, ensuring that you can maintain a dignified standard of living even when you are no longer able to work.

Original article published on Money.it Italy 2024-05-29 07:51:00. Original title: Quanti soldi servono per vivere bene in Italia?