The Cost of Living in Mexico
Depends on Your Lifestyle
When You Live or Retire in Mexico

If you have been researching and planning to retire in Mexico, you may have noticed that it’s hard to get solid information about the cost of living in Mexico.

I have good news. You can breathe a sigh of relief because you’ve just found a useful source of information.

The cost of living in Mexico is quite varied. Imagine trying to tell someone from Europe what the cost of living is for the entire United States. Well, it’s that hard to describe the cost of living in Mexico — yet it’s crucial information for anyone planning to live or retire in Mexico. Additionally, there aren’t the same sources of information on the Internet as there are for the U.S. and other similar countries. Getting solid information about Mexico is a little like reading the paper through a glass of water.

To help my readers I have devised a unique way to elucidate the cost of living in Mexico. I describe three levels of lifestyle (low, medium, and high) and give prices — as references — at Cuernavaca prices. These three “lifestyle levels” provide a snapshot that will allow you to imagine how you would like to live in Mexico once you retire here. You can then use them as starting points to plan accordingly for your retirement.

You wouldn’t buy a car without first researching its safety, comfort, reliability, and gas mileage.

DON’T MAKE THAT MISTAKE WITH MEXICO.

There’s NO NEED to make planning to retire in Mexico like reading the newspaper through a glass of water when you can have REAL ANSWERS. Treat yourself to a book which will clear up your doubts.  Click here to learn how.

The prices I give are estimates that will give you ballpark ideas of how much it costs to live a certain way. Keep in mind that in addition to your lifestyle, the cost of living in Mexico also depends on where you live. We all know that it costs less to live in Virginia than it does to live in San Francisco, California. In the same way, it costs less to live in Morelia, Michoacan than it does to live in Mexico City or Cuernavaca.

Keep in mind that really touristy areas, such as Los Cabos and Cancun, cost much more. Also keep in mind that if you don’t need to work and can handle a less “modern” city, you can find lovely places in Mexico with much lower prices. If you do need to work, you need to consider the amount of industry or tourism in the area.

Once you get serious about living in a particular area, you can use the ideas on this page and in my e-book to investigate the actual prices and cost of living in your area of choice.

The Cost of Living of the “LOW” lifestyle Level in Mexico:

This lifestyle is rustic in many ways compared to life in the US, but covers the basic needs (you have to actively define your basic needs). See letting go of materialism for a simple lifestyle to read about peeling your lifestyle-onion.

This lifestyle costs a total ballpark figure (in Cuernavaca) of about XX,XXX to XX,XXX* pesos per month for two people.

*To see the prices and read lots of important information about life in Mexico that’s not available anywhere else, read the e-book called “detailed and thorough” by the owner of mexicoadventure.com.

At this lifestyle level, eating out consists of tacos and comida corrida, with a very occasional trip to a more expensive restaurant. It involves eating very few packaged foods and shopping for fresh meats and vegetables at the market, rather than in a supermarket. It does not include many movies, nor many trips in a taxi. It might include having one economical car per family and may include one or two extras such as exercise or language classes, but the extras have to be prioritized. For example, “Do we want cable TV or dial up internet service?”

Housing:

Housing at this level costs between X,XXX and X,XXX* pesos per month, with X,XXX* being most common. You’d have to get lucky to find something for less than X,XXX*/month. At this lifestyle level, features of the housing are considered separately. It is possible to find the ones that are most important to you, but probably not all of them together (that would jump you up to the medium level).

*To see the prices and get the information you need about real life in Mexico, read the e-book Mexico: The Trick is Living Here.

“I bought a copy, and I think I struck a wonderful bargain.” — Michael Greene, Online Instructor.

Note: at this level of lifestyle you have to buy ALL of your own appliances—even your shelves and cupboards. Small, less expensive stoves and refrigerators are available.** You will have a wider range of appliance options than are available up north. If you can purchase these, then it represents a one-time purchase rather than a cost that would otherwise be included in the monthly rent.

Features to consider are the following:

1.  There may be asbestos in the roofing or water tank

2.  A separate sink in the kitchen and bathroom

3.  Hot water to the kitchen

4.  An outside area to put a washing machine (covered vs not covered)

5.  Private area to hang clothes to dry

6.  A private vs. shared patio area

7.  Space for plants in a patio area

8.  Closets

…* 

20. Other kinds of pollution, such as smells from food stands

21. Safety of neighborhood

22. Frequency of bus service (I recommend that it come by at least every 15 minutes because this lets you get by without a car)

23. Protected off-street parking for a car (room for two may be too much to ask for)

24. Stores within walking distance

*To see the rest of this list and read lots of additional information about life in Mexico that’s not available anywhere else, read the e-book Mexico: The Trick is Living Here.

The Cost of Living of the “MEDIUM” lifestyle Level in Mexico:

This lifestyle is simpler in many ways compared to life in the US, but doesn’t force you to peel your lifestyle-onion down very much.

This lifestyle costs a total ballpark figure (in Cuernavaca) of about XX,XXX to X,XXX* pesos per month for two people.
Conveniences at this lifestyle level often include….

*Don’t stay blind to the realities of living in Mexico. To read the rest of this section get the all new Second Edition of Mexico: The Trick is Living Here.

The Cost of Living of the “HIGH” lifestyle Level in Mexico:

This lifestyle can actually be more luxurious than life in the US….

*To read the rest of this section get the all new Second Edition of Mexico: The Trick is Living Here.

“…forthright and entertaining…” –Michael Greene, Online Instructor 

**To see some of the variety in appliances available, click here. When you get to the site, click on Electra.com, then where it says “buscar” type in the words “Estufas” and “Refrigeradores.” It’s not really easy to see, but some stoves don’t have an oven under them, and many of the fridges are actually slightly bigger than our mini-fridges (you know the ones college students have in their dorm rooms).

You can also find out the value of Mexican pesos in your own currency.

Back to Letting Go of Materialism

Back to “Inside Out or Outside In” by Michael Shepard

HOME

Letting Go of Materialism for a Simple Lifestyle in Mexico

Picture your lifestyle as a big ol’ yellow Walla Walla Sweet onion. The roots are the part that is actually based on your survival needs. The juicy, semi-sweet bulb is all the stuff you CHOOSE to include—your preferences. The top part is… well, we don’t need that part.

Mexico Named #1
Retirement Haven
Find out why

Materialism is so deeply ingrained in our first-world onion that it is hard to let go—while still in the north. Label your onion “materialistic.”

Now picture your onion in Mexico.

Click here for a description of 3 lifestyle levels in Mexico with general cost estimates.

This new onion has decided to live or retire in Mexico and it is wearing sunscreen and sunglasses. Does it have a beer in its hand? Or maybe a freshly squeezed grapefruit juice? This onion is thinner, but obviously has been relaxing more. This onion is forgetting about “the rat race.” This onion hasn’t been getting by on burgers purchased in a drive-through and double shot low fat lattes.

Materialism is coming away from your lifestyle one thin layer at a time; one experience at a time.

While still in the north, we talk a lot about having a less materialistic lifestyle, but find it very hard to get out from under its pervasive influence. Everywhere we turn there are cool gadgets to use in the kitchen, faster and better electronic devices to play with, fancy new low-fat foods to consume.

Need to know more about your lifestyle as an expatriate in Mexico? Click here to see a description of an e-book prepared by the author of this website.

“You asked me to tell you how I liked the book and I do really like it. It should be required reading for anybody planning on going to Mexico.

“I am astounded at how little the general population of the US know about our southern neighbor. I am no exception. When I made my first trip to central Mexico It was so different from my preconceived idea of what it was, I began reading everything I could about the country. The more I visited it, and learned about it the more I loved it.

“And, by the way, you should write more. You are an excellent writer. You have a knack for using the correct word and I love your sense of humor.

Sincerely, Glen

In Mexico, your experiences will help you to let go of materialism in many ways. This is mostly because of the fact that life in Mexico is not normal life. IN NORMAL LIFE NOBODY EVER PEELS AN ONION! We chop, slice, and roast them, but we don’t peel them down to their hearts layer by layer. It takes some pretty unusual circumstances to make us actually PEEL our lifestyle onion. Mexico provides plenty of unusual experiences.

Once you retire in Mexico you end up having to get by with less stuff. Eventually you find you don’t miss or want that stuff you were getting by without. In other words, you have to peel your onion… then you end up liking it better that way.

SEE “THE COST OF LIVING IN MEXICO DEPENDS ON YOUR LIFESTYLE” FOR A DESCRIPTION OF 3 LIFESTYLE LEVELS WITH GENERAL COST ESTIMATES. Sometimes you can’t have something because it’s not sold here (low fat soy milk). Sometimes you can’t have something because it would require a major remodel or re-wiring of your house and it’s just not that important (a bath tub, a microwave). Sometimes the Mexican version doesn’t suit your idea of what you want (an open-topped barbeque with no grill; a wooden-armed, uncomfortable couch). Sometimes you decide your house is just too small anyway. Besides, if you got the couch or a carpet you’d have to buy a vacuum cleaner. …And in order to keep the vacuum cleaner you’d have to remodel the house to add closets…

At the same time, you can have anything you want if you are willing to put in enough time, perseverance, and money. If you have a fat enough budget, you won’t have to peel your onion very deeply. If you are earning in pesos, you’ll be peeling your onion right down to the heart.

No matter how fat your budget, the cool thing about retiring in Mexico is that it forces you to make conscious choices about the lifestyle you wish to maintain here. Because so many things aren’t readily available or cost more than they would back in the US, you have to decide if they are really worth it.

There will be a few things that you decide you definitely don’t want to remove from your lifestyle, but many others that you decide to peel off.

In addition to thinking ahead about the kind of lifestyle you would like to have in Mexico, it is also important to have some transition strategies in mind before you live or retire in Mexico.

One of the joys when you live or retire in Mexico is the amount of time that you can spend outside. See “Live or Retire in Mexico and Enjoy a More Outdoors Lifestyle.”

Mexico’s other joys include neighborliness and precious moments like this one.

Receiving Social Security Payments When you Retire in Mexico (U.S. citizens)

Can you receive social security benefits when retiring in Mexico?

What Do Other Expats Have to Say About Retiring in Mexico?

Learn from real people’s retirement experiences as told to home-sweet-mexico’s author in exclusive interviews. Here is the first of a series of articles on inspiring expats.

Two U.S. expats moved from Ecuador to Mexico:

“Deb and I are approaching retirement age but not ready yet to give up the stimulation we’ve grown accustomed to in the U.S. We both hope to stay active, either through work or volunteering, as part of our future life-style in Mexico. That will require a certain amount of integration into the culture that we’ll find ourselves.” Click Here to read more…

An expatriate lifestyle is enriching, but not easy. You’ll enjoy this semi-retired couple’s viewpoint on picking up and hauling off to a new country.

Off-Site Resources

As I browse the net for information on living in Mexico, Mexico Connect always interests me the most. They have real articles written by real people about real experiences in Mexico. You can enjoy their site at www.mexconnect.com. If you are really serious about moving to Mexico, their forums is unequaled for contact with real people who share their personal knowledge and experiences about Mexico.

Oaxaca may be the place for you if you are thinking about retiring or spending part of the year in Mexico. This is a web site created by Shawn Haley who is trained as an Anthropologist and an Archaeologist and has conducted field research in many parts of the United States and Canada as well as in Peru, Guatemala, Ecuador, and Mexico. He has recently retired as Head of Anthropology at Red Deer College in central Alberta, Canada.

www.giddylimits.co.uk
An inspirational online magazine for men and women over 50, packed with great ideas and information.

To read interviews of expatriates living and working in Mexico go to Expat Interviews.

The transition from working person to retired person is a large one. The transition from residence in the U.S. or Canada to residence in Mexico is even larger! If you want to live or retire in Mexico, you are not only planning to move, but planning to experience a whole new lifestyle. This change takes action and commitment. You might enjoy SecondActLiving.com a web site that helps people turn “happily ever after” into “right now.”

An American-Irish expatriate couple share their Greek island experience by offering lodging and information including maps and photos. They provide content and links for Paros, the Cyclades, Greece and> the world of living abroad. Learn more at: www.ParosParadise.com

Expats Reunite is a useful site for all expats. It includes an international job section, a free name search to find lost friends and you can play the UK lottery from anywhere in the world.

HOME

Surprise Costs: Plan Some Slop into Your Budget

I recommend that you plan your budget with some flexibility in it when you retire in Mexico. There are occasionally surprise charges for things that you can’t plan ahead for. They don’t cost that much in the grand scheme of things, so if you have a little extra you’ll be able to pay them easily.

Telmex, the national phone service provider, is often an inventor of surprise charges. Expatriate Jill Flyer describes one of these surprises that popped up in her life recently. “My newest frustration was being billed about 700 pesos extra on my Telmex – I didn’t want to wait 2 hours at the office, so the guy there told me that I could call the Telmex info line. After a day of trying to get a hold of them, I finally connected, only to be told, that they couldn’t answer the question, and I would have to go back to the Telmex office.

“So, I went to the office and they produced a piece of PAPER that I had signed SIX months ago for the installation of my line, at which time, I was charged some installation money. But, they explained, that was for putting in the outside line and this was for the inside jack (which, had I known there was another charge, I could have had a jack installed for 250 pesos). AND, none of this was computerized, so there was just this piece of paper, which got lost for six months and suddenly reappeared and so I needed to pay this with my bill that day or get my phone service disconnected!”

I have no idea how Jill’s telephone service office invented that charge. When I had my line installed I was charged one fee and that was it. Sometimes in Mexico you get charged for things that aren’t right.

Surprised?

Jill’s experience is typical of those retired in Mexico. Don’t stay blind to the realities of living in Mexico. Treat yourself to the all new Second Edition of Mexico: The Trick is Living Here. Retire in Mexico with your eyes open.

“…forthright and entertaining…” –Michael Greene, Online Instructor

I’ve had a few similar experiences with Telmex. One of their favorite tricks is to add a “free” service for a month or two, then make it completely impossible to cancel. They give you the run around on their 800 number for DAYS and when you finally get through to cancel, they tell you that you’ve passed the deadline and must pay for the whole month (no pro-rating at Telmex. That’s for the customer oriented organization, not a monopoly) PLUS a cancellation fee. You’ve got to love that.

Click here to read about a vehicle related surprise cost in Mexico.

Cash Budget: Record Keeping Once You Retire in Mexico

Once you retire in Mexico the way you plan and track your budget may change. Since bills can’t be paid through the mail with checks and internet services for banking aren’t as accessible as in the U.S. payments are made in person. As a result, almost everything in Mexico is done with cash. This means that your records for your payments are hundreds of tiny receipts which can quickly begin to float around your house, collecting on counter tops and never adding up. To top it all off, bank statements are few and far between, so it’s hard to reconcile any doubts that you may have.

Dear Julia,
I have been living in Mexico for 1.5 years now and still found your book very helpful.

Again. Thanks.
–Janet Onnen.

Retire in Mexico with the book that expatriates already living in Mexico find helpful. Treat yourself to the all new Second Edition of Mexico: The Trick is Living Here.

When you retire in Mexico it is also easy to get pound wise and penny foolish. You plan ahead how much you are paying in rent or house payments, how much your annual residence visa costs, etc. but you need tomatoes for a salsa and you grab a few pesos from the “penny pot” and head around the corner to the local frutería. How many trips to the frutería does it take to add up to an extra (hidden) trip to the market? When you go out and about, how many times do you drop 30 pesos for a ride in a taxi, or for tips here and there when you are driving?

Here are some ideas to help you keep track of your budget once you retire in Mexico:

1. Get a small file cabinet and set up folders for each item you will pay. (This will also help you keep your immigration paperwork together.) Train yourself to put the receipts in the correct folders right after paying them.

2. Include a calendar in your budget records. Mark on it when you go to pay each bill.

Note: A calendar can also help you to know when a bill is due. Often bills arrive at your house after their past due date. Of course, this is no excuse for not paying them. If you are like me and things are out of mind when they are out of sight you might need a system for reminding yourself to pay them. Mark the monthly due dates onto your “bills calendar” and check it regularly.

3. Withdraw the amounts needed to pay bills ahead of time and set that money aside in a special place. Include in this an amount for “pocket money” and don’t allow yourself to withdraw any more “pocket money” until your next income check/deposit arrives.

4. Occasionally take the time to sit down and write down the amounts you are spending on each living expense and add them up — make a special effort to include the little expenses, such as parking when you go out, tips for small services, such as window washing and parking lot attendants, etc. This will give you a big picture of your monthly retirement budget including all the little expenses that flow out of your pocket on a daily — sometimes hourly, rate. You can make adjustments if you don’t like the way the money is flowing.

Before I lived in Mexico I used to create and stick to a careful monthly budget. The cash economy, reduction in buying power due to my income in pesos, and the lack of tracking paperwork, such as bank statements has brought this system to a grinding halt. I try to do the things listed above, but often I just end up trying to make the cash in my wallet “last” until the next pay day. This works relatively well, but it would be better if I could more aggressively save money. When you first retire in Mexico if you are aware of the need to budget cash expenditures you can get started on the right foot.

Back to Cost of Living

HOME