Cost of living also means the cost of all the goods, services, and housing that a person or family needs to live. It includes not just rent or a mortgage payment, but also things like groceries, transportation, healthcare, and entertainment. The cost of living can vary significantly based on location, as well as individual and household needs and preferences.
In general, there is a positive correlation between a high standard of living and cost of living. This is because places that offer a higher quality of life tend to attract more people and businesses, which in turn drives up prices for housing, goods and services. However, it's important to note that there are some exceptions to this rule, as there are some places with a high cost of living that do not necessarily offer a correspondingly high standard of living, and vice versa.
Here is a table summarizing the differences between standard of living and cost of living:
| Feature | Standard of living | Cost of living |
| -------------------------- | ------------------------ | --------------------- |
| Definition | Level of wealth, comfort and material goods | Cost of basic necessities and amenities |
| Components | Income, healthcare, education, housing | Rent/mortgage, food, transportation, entertainment |
| Correlation | Positive correlation | Not always correlated |
| Examples
(High/Low) | Monaco / Ethiopia | Singapore (high), Vietnam(low) |