The purpose of this conceptual analysis is to show key factors that are contributing to the rise of living costs. The most recent research papers were reviewed to identify the key determinants of living costs and the key factors that are contributing to financial distress and overall life satisfaction. The past literature selected and reviewed showed that inflation, household income, house rent, increasing utility costs and implementation of goods and services tax (GST) are the key determinants of rising living costs. Also, past literature suggested that rising living costs steadily could contribute to increasing financial distress and adversely affect overall life satisfaction. The overall conclusion based on the past literature, the increasing living costs may worsen the overall life satisfaction and add more weight towards the financial distress. The practical and theoretical implications are discussed.