Colombia Expat Forum

fecherklyn
Joined 2015
Posts: 1349

1 year ago

Variable cost structures in Colombia

1 year ago

“Variable Cost Structures in Colombia” sounds as if what I am about to post is very complex, but it isn’t – I just cannot think of another title. What I am posting is the result of my latest examination of HOW my costs in Colombia have changed over time. Obviously, my cost structure, and how it changes are very personal, so I will not be stating actual COP values, but simply the %age changes.

It also helps that when I quit working I “borrowed” one of my ex-employers financial management models which permit me to track my incomes/expenditures in a very easy manner. Example, the main budget/cashflow summary statements contain approx 500 line items; but it only takes me a few minutes each day to update. I have been using this technique since 2000, so I have a remarkable tool to see exactly what I have been up to (bad memories too often).

Today, I am presenting how my COLOMBIAN expenditures have varied between 2016 and today. These results only concern what/how I have spent money in Colombia.
The main cost centers are as follows:

Optional/personal costs: 2016/20.52% - 2022/32.91%
Household costs: 2016/45.99% - 2022/30.35%
Healthcare: 2016/19.99% - 2022/26.97%
Pet costs: 2016/2.76% - 2022/zero %
Vehicle/taxi costs: 2016/2.71% - 2022/2.54%
Postal, notary & legal costs: 2016/2.17% - 2022/0.37%
Colombia taxes: 2016/2.11% - 2022/a.19%
Gifts & charities: 2016/1.57% - 2022/4.09%
Leisure & entertainment: 2016/1.02% - 2022/1.21%
Exceptional/unbudgeted: 2016/1.01% - 2022/zero%
Other costs: 2016/0.16% - 2022/0.37%

As you can see, a few of my cost structure items have changed significantly. None of these changes is a mystery to me as they simply represent the manner in which my household has reacted to, not only inflation, but also our own family attitudes and desires.

What I think could interest forum members is the high %age we spend on healthcare and personal/optional costs. To enlighten you, we are an elderly family and this illustrates clearly how aging gradually flexes its muscles within the overall budget. Would be retirees looking to live in Colombia need to take into this into account as healthcare OUTSIDE the EPS services is not cheap.

As for personal/optional costs, we take the view we are entitled to enjoy ourselves after a long working life and our budgetary means allow us to do so. Clearly, expats coming to Colombia because of its lower “living” costs may not be able to indulge themselves to the same extent.

I will not go on, and on, but go ahead and ask questions if you want to.

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Contribute
Help others in Colombia by answering questions about the challenges and adventures of living in Colombia.