Cost Of Living For a Couple in Somalia 2024

Average monthly spending for couples in Somalia

How much money does a couple need in a month to survive in Somalia?

Couples in Somalia spend around 300,000 SOS per month on average. Depending on the lifestyle, a couple can survive with a monthly budget as low as 100,000 SOS or as high as 1.6M SOS. Location and income are very important factors and have a huge influence on expenditure and budget.

Couple expenditure to income ratio in Somalia

Analysing the how affordable it is for couples to live in Somalia

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Couples usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a couple of four ranges between 70% to 80%.

Couples in Somalia spend around 82% of their monthly income. Some couples spend as low as 75% of their income while some as high as 90%.

How do couples spend their money in Somalia?

We asked thousands of couples about their spending habits and expenditure break down.

Housing and accomodation expenditure for couples

Couples in Somalia typically spend from 21% to 38% of their total monthly expenditure on housing with 28% being the average. The average monthly spend on housing is 100,000 SOS with expenditure ranging from 34,000 SOS to 550,000 SOS. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for couples

Utility expenditure like electricity, water, and gas in Somalia ranges from 5% to 11% of total expenses with 7% being the average for most couples. The average monthly cost of utilities is 14,000 SOS with 4,000 SOS and 88,000 SOS being the upper and lower limits for a couple of four.

Transport, fuel, and commute expenditure for couples

Fuel consumption and cost of transport depend heavily on whether a couple resides near school and work, but roughly speaking a couple would expect to spend from 12,000 SOS to 190,000 SOS in a month on commuting with 36,000 SOS being the norm for most couples. This means that money spent on transport constitutes about 9% of total spending on average but can go as low as 3% or as high as 14%.

Food, groceries, and basic shopping expenditure for couples

The average outlay on groceries and basic houshold items for a typical couple in a month in Somalia is 42,000 SOS. The cost of groceries can range between 14,000 SOS to 220,000 SOS. Couples spend on average about 17% on food and groceries with upper and lower bounds of 12% and 22% respectively.

Healthcare and medical services expenditure for couples

Couples in Somalia allocate 8% to 18% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 14%. The range of medical expenses range from 11,000 SOS to 180,000 SOS with 33,000 SOS being the norm for most couples.

Leisure and shopping expenditure for couples

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 6,000 SOS to 96,000 SOS with 18,000 SOS being the average. Speaking of percentages, that equates to 1% to 7% of total expenses with an average of 4% for most couples.

Education and schooling expenditure for couples

Spending on education can vary drastically between different couples. On average, education constitutes 1% of the monthly expenditure of couples with 0.00% and 3% being the lower and upper bounds respectively. The average reported education cost is 6,000 SOS per month with 2,000 SOS being the minimum spent amount and 32,000 SOS being the maximum.

What percentage of couples in Somalia are able to save money and how much can they save?

Percentage of couples that reported their ability to save money

Almost 52% of surveyed couples in Somalia said that they can save some money at the end of each month while 48% reported that they have to utilize their whole income to survive.

How much money do couples manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for couples

Interpretation and Analysis

Couples that are able to save money can put anywhere from 12% to 32% of their monthly income to their savings, with 20% being the average for most couples. The average monthly amount of money that couples can put aside is 89,000 SOS with 30,000 SOS and 480,000 SOS being the minimum and maximum respectively.

Saving Challenges in Somalia

Reasons that make it difficult for couples to save money

We wanted to understand what is stopping couples from maximizing their savings in Somalia. Listed below are the answers given by the survey participants.

Around 5% of the couples said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 15% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 11% of couples blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 20% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 12% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.

Typical saving choices for couples in Somalia

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Somalia

Income and cost of living compatibility

We asked couples one simple question and recorded their answers.

Is it affordable or economical to live in Somalia?

Around 50% of surveyed couples think that living in Somalia is affordable with proper budgeting while 50% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Somalia

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked couples how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options56%

Few low-cost options44%

Based on the survey, 56% of the couples living in Somalia have no problem finding low-cost alternatives to support a frugal lifestyle while 44% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Couples

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked couples of Somalia whether they have an emergency fund and the answers were as follows.

Yes50%

No50%

Based on the survey, 50% of the couples living in Somalia said that they don't have an emergency fund while 50% said that they do.

Financial Literacy in Somalia

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy45%

We asked couple guardians and parents in Somalia whether they acquired any adequate personal financial training in their lives. Approximately 55% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 45% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether couples of Somalia have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 45% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 55% said that they have everything under control.

Struggles with finance45%

Easily manages finances55%

Financial goals of couples in Somalia

In an attempt to understand the economic situation in Somalia, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 8% of couples said that their main goal is to establish an emergency fund to cover unexpected expenses while 39% said their number one priority is to pay off high-interest debt or loans and improve credit. 9% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 7% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 8% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 12% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Somalia

Percentage of couples who are in debt

According to the survey, 27% of the couples in Somalia have some kind of debt, loan, mortgage, or credit card payments while 73% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Somalia

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 31% of a couple's monthly income in Somalia goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Somalia pay 60%+ of their income as debt settlement while 16% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 13% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 15% dedicated 30% to 40% of income for same. Things are looking brighter for 12% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Somalia

10% of debtors in Somalia confirm that real estate mortgages constitutes the main part of their outstanding debt while 28% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 17% of people and personal loans rose at 41%. Lastly, student loans are the main source of debt for 4% of debtors in Somalia.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Somalia

Besides measuring the loan-to-income ratio, we asked couples of Somalia how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Somalia

Rent Cost in Somalia

Monthly Rent Prices

Studio apartment monthly rent cost

22,000 SOS

33,000 SOS

87,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$38

$57

$150

1-bedroom apartment monthly rent cost

33,000 SOS

52,000 SOS

130,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$57

$91

$230

2-bedroom apartment monthly rent cost

43,000 SOS

65,000 SOS

170,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$76

$110

$300

3-bedroom apartment monthly rent cost

52,000 SOS

87,000 SOS

240,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$91

$150

$410

Furnished apartment monthly rent cost

100,000 SOS

260,000 SOS

520,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$180

$460

$910

Townhouse monthly rent cost

87,000 SOS

130,000 SOS

370,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$150

$230

$650

House monthly rent cost

100,000 SOS

260,000 SOS

520,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$180

$460

$910

Villa monthly rent cost

130,000 SOS

330,000 SOS

520,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$230

$570

$910

The monthly rental cost of a studio apartment in Somalia ranges between 22,000 SOS and 87,000 SOS, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 33,000 SOS to 130,000 SOS. Two-bedroom rentals rate ranges between 43,000 SOS and 170,000 SOS per month. The monthly rental for a three-bedroom apartment ranges from 52,000 SOS to 240,000 SOS. The average rent of a townhouse in Somalia is around 130,000 SOS while house rental costs can be as high as 260,000 SOS per month. Finally, if you want to rent a villa, expect to pay anywhere from 130,000 SOS to 520,000 SOS per month.

Apartment and house prices in Somalia

Cost of buying a property

Studio apartment price

4.3M SOS

6.5M SOS

13M SOS

MINIMUM

AVERAGE

MAXIMUM

$7,600

$11,000

$23,000

1-bedroom apartment price

5.2M SOS

8.7M SOS

33M SOS

MINIMUM

AVERAGE

MAXIMUM

$9,100

$15,000

$57,000

2-bedroom apartment price

8.7M SOS

26M SOS

52M SOS

MINIMUM

AVERAGE

MAXIMUM

$15,000

$46,000

$91,000

3-bedroom apartment price

29M SOS

43M SOS

130M SOS

MINIMUM

AVERAGE

MAXIMUM

$51,000

$76,000

$230,000

Townhouse price

37M SOS

87M SOS

330M SOS

MINIMUM

AVERAGE

MAXIMUM

$65,000

$150,000

$570,000

House price

43M SOS

260M SOS

370M SOS

MINIMUM

AVERAGE

MAXIMUM

$76,000

$460,000

$650,000

Villa price

52M SOS

290M SOS

430M SOS

MINIMUM

AVERAGE

MAXIMUM

$91,000

$510,000

$760,000

The average price of a studio apartment in Somalia can range from 4.3M SOS to 13M SOS depending on location. One bedroom cost can be anywhere from 5.2M SOS to 33M SOS. A villa can cost you 290M SOS on average with prices ranging from 52M SOS to 430M SOS.

House / apartment prices to income ratio

Property prices in Somalia can be x96 to x197 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x96 multiples of the average monthly salary in Somalia.

Rent to income ratio

The average rent-to-income ratio in Somalia is around 30%. This means that people pay 30% of their income for rent. Those figures can range from 20% to 40% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Somalia

Energy, electricity, water, gas, internet, and mobile cost in Somalia

Utility Bill Cost / Electricity + Water + Gas / Couple

4,000 SOS

14,000 SOS

88,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$7

$24

$150

Internet and cable cost

1,300 SOS

2,600 SOS

3,500 SOS

MINIMUM

AVERAGE

MAXIMUM

$2.3

$4.6

$6.1

Mobile phone bill and charges

1,000 SOS

1,700 SOS

5,200 SOS

MINIMUM

AVERAGE

MAXIMUM

$1.8

$3

$9.1

The average monthly energy and water consumption of couples is around 14,000 SOS. The cost of internet and WiFi ranges from 1,300 SOS to 3,500 SOS with 2,600 SOS being the average internet bill. Finally, the average monthly mobile charges is around 1,700 SOS but can range between 1,000 SOS and 5,200 SOS depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Somalia is around 6%. This means that people pay 6% of their income for energy, water, internet, and mobile charges. Those figures can range from 3% to 10% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Somalia

Prices and cost of goods and services in Somalia

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

260 SOS

520 SOS

870 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.46

$0.91

$1.5

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Somalia is approximatly 520 SOS with meal cost ranging from 260 SOS to 870 SOS. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

870 SOS

1,300 SOS

2,600 SOS

MINIMUM

AVERAGE

MAXIMUM

$1.5

$2.3

$4.6

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 870 SOS and 2,600 SOS with 1,300 SOS being the average price of a plate for one person at a regular restaurant in Somalia.

Fine dining meal for one price

1,700 SOS

2,600 SOS

10,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$3

$4.6

$18

The price range of a meal at fine-dining restaurant is 1,700 SOS to 10,000 SOS with the average cost being 2,600 SOS for one person. This is what you would expect to pay a top-tier diner in Somalia.

Beverage prices, cappuccino, latte etc..

220 SOS

350 SOS

520 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.38

$0.61

$0.91

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Somalia is around 350 SOS. Price ranges between 220 SOS and 520 SOS depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

170 SOS

210 SOS

260 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.30

$0.36

$0.46

The average price of a large bottle of milk in Somalia is 210 SOS. The maximum what you would pay for milk is 260 SOS and the minimum being 170 SOS depending on the brand of milk and other properties.

12 eggs price

130 SOS

170 SOS

260 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.23

$0.30

$0.46

A dozen eggs costs around 170 SOS on average with 130 SOS and 260 SOS being the lower and upper limits respectively.

Fresh whole chicken price

300 SOS

380 SOS

540 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.52

$0.67

$0.95

The price range of a fresh whole chicken in Somalia is between 300 SOS and 540 SOS depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 380 SOS.

Pack of beef price

350 SOS

520 SOS

1,000 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.61

$0.91

$1.8

The price of a regular pack of beef or meat is around 520 SOS. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

140 SOS

190 SOS

270 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.25

$0.34

$0.48

A bag of rice in Somalia costs around 190 SOS on average with prices rangeing between 140 SOS and 270 SOS depending on the brand and quality.

Bag of tomatos price

52 SOS

69 SOS

130 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.09

$0.12

$0.23

A bag of tomatoes costs anywhere from 52 SOS to 130 SOS. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

93 SOS

120 SOS

200 SOS

MINIMUM

AVERAGE

MAXIMUM

$0.16

$0.21

$0.35

A bag of apples costs 120 SOS on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Somalia is around 27%. This means that couples spend 27% of their income on grocery and basic household items. The expenditure can range from 19% to 33% depending on salary and location.

Expenditure on food and grocery for couples