Cost of living is the amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes and health care ( Investopedia, 2016). Cost of living frequently used to measure a standard of living in modern places or urban areas compare to another places such as rural areas. According to Tatum (2016), for households, identifying how much money it will take to secure basic necessities plays a large role in the task of choosing to work in a particular industry. We can say that cost of living is tied with people monthly income, it is because the level of income will be measured based on expenditure that are necessary to maintain the standard of living in certain geographic. Cost of living can be an important factor on accumulation of personal wealth, where small salary can survive in small town and large salary is not enough to survive in expensive city. According to Mercer (2015) in Cost of Living Survey, cities with the highest cost of living standards included Tokyo, Osaka, Moscow, Geneva, Hong Kong, Zurich, Copenhagen and New York City. U.S. cities with a highest cost of living as of 2015 included Honolulu, Los Angeles, Washington and San Francisco. In this research, we will discuss in detail about the factor that related to cost of living increase. There are so many factors that can increase the cost of living which are inflation, tax, level of income, supply, demand, changes in lifestyle. According to Gaserud (2016), this