Focus on Mexico Blog

By Karen McConnaughey

We get asked this question a lot and, as we always say, “It depends on your lifestyle.” But, as expat Jerry Draughon says on his website, “…I might be able to EXIST in the states, but I can LIVE in Mexico.” That’s how most of us feel about living in our little slice of paradise.

In a website survey run every year in the Ajijic area, one single lady shows how she gets along on $668 a month, which includes her rent of $300 per month! Now that’s financial planning. However, as she says, “I’m proud not to be a consumer. I only purchase what I need and enjoy living a very simple and quiet life.” A more realistic view would be the average for the three single people in the survey, which comes out to be about $1600 a month. The three couples in the survey average about $2600. The only thing we can say with absolute certainty is that you definitely can live better for less in Mexico! The cost of living has been estimated to be 30% to 40% less than anywhere else in North America.

Even if you intend to maintain the same lifestyle you have north of the border, your life is likely to change in unexpected, mostly wonderful, ways. When Bill and I retired here in 2004, we retired on his social security of $1500 a month. Who would imagine that after only one month in Mexico we would have a maid coming in twice a week? We owned our home, had cable TV and Internet access, and ate very well indeed given that Bill’s a gourmet cook! Since we both had the same retirement plan in the States…to drop dead at our desks…we knew we were living large!
My guess is that almost anyone reading this can afford to retire in Mexico. You just want to know that others, like you, started with a dream and a budget and ended up in a truly wonderful reality.

One of our expert speakers during our Focus on Mexico 8-day Educational seminars breaks it down even further for our participants detailing her life in Colorado versus her lifestyle at Lake Chapala. Some of the costs that you might find interesting:

US Dollars:
1. Doctor’s visit – from $15-$30.00
2. Dental visit – teeth cleaning - $25.00
3. Hair cut for men – from $4-$6.00
4. Ladies hair cut and permanent – $20.00
5. Auto wash – from $2-$5.00
6. 1-hour massage – $20-$30.00
7. Pedicure or Manicure — $10
8. Movie ticket (first-run movies in English) – $2.50
9. Gardener – $2.50-$3.00/hr
10. Maid – $3.00/hr
11. Property taxes – from $50 USD to $200 USD a year, with a 10% discount for early payment
12. Water – around $6 a month (paid annually)

We also have no need for air conditioning or a furnace here in the Lake Chapala area. And, generally, any expense in companies requiring a large labor force, like restaurants, construction or auto repair is a bargain. You’ll have to search to find a first-rate evening meal exceeding $20 USD from an unbelievably broad selection of excellent restaurants…European, Greek, Thai, Italian, Argentinean and more!

And, guess what? Many foreigners claim their cost of living in Lake Chapala actually goes down each year. Do you know why that is? Because the longer you live in Mexico, the more you learn to live in a peso-based economy. You’re not taking that credit card out every time you turn around. You’ll find that you don’t miss the things you thought you would miss once you move down here.

You also start thinking in more of a “Mexican” way. When Bill and I first arrived, things seemed so cheap compared to what we were used to. “Wow, only $150 pesos for THAT…let’s buy two!” Just yesterday, at the tianguis, we were looking at a similar $150-peso item and I said: “$150 pesos, you’ve got to be kidding!” And, I don’t know how it happened, but percentage-wise, we’re saving a whole lot more than we used to in the States and even more than we were saving five years ago when we moved to Mexico!

Bill and I moved to Lake Chapala for the same reason most people leave “back home.” We wanted a lower cost of living, a temperate climate, and we wanted to leave the rat race. It’s one of the best decisions we ever made. In fact, it is truly hard for us to understand why so many people still struggle with miserable climates, high utility and medical bills, and other services when they could live a much more enhanced lifestyle in Mexico for less.

Please join us on a Focus on Mexico program. You’ll realize, after hearing our guest speaker talk about Cost of Living and Taxes, why so many people are able to move up their retirement date. Maybe you can too.