When the cost of living rises, you might get a cost of living increase on your monthly bill. While a cost of living increase may be a little bit of a shock at first, the process can make it easier. You can prepare by making changes in your habits and advocating for yourself. A few personal finance resources can also help you through the transition. If you're a homeowner and want to avoid a cost of living increase, here are some helpful tips:The cost of living adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is largely reflective of the broad CPI. The Labor Department reports that the CPI-W rose 5.9% annually in September, compared to a 5.8% increase in August. For the past 10 years, the COLA has averaged a 1.4% increase. But, it can be difficult for some older people to cope with this increase.The Social Security Administration bases cost-of-living adjustments on the Consumer Price Index for Urban Wage Earners and Clerical Workers. The government announces the annual adjustment in October and increases benefits in January. Despite the hefty increase, a cost-of-living increase does not necessarily translate to higher income. It merely provides a minimum level of increase to maintain purchasing power. However, a cost-of-living increase is not an indication of higher benefits or higher income.