Cost of Living
The lower cost of living in Lake Chapala and the Ajijic area of Mexico is one of the Major Attractions. |
| |
| Although it may not be as cheap as some would lead you to believe. |
| |
There are still books and articles out there professing you can live in Mexico on $500 US up to $1,000 US. We know people who live here on their government pensions so certainly it is possible.
I’m not going to tell you that it isn’t. The point is most people move to Mexico to enjoy a better lifestyle for less. They want to live in the main stream and get involved in activities, take in local events, do a little traveling, eat out, and generally be active. The cost of living in any country or town depends a lot on the person. What is your cost of living now? Are you planning on maintaining the status quo or do you want to pinch pennies? Or do you want to live more extravagantly? So you can see, establishing a cost of living is an individual matter.
However, if I can generalize for a moment, I would estimate that the cost of living for a decent lifestyle could range from $1,200 to $2,300 US a month. Of course a lot depends on whether you are single or a couple, whether you own or rent. The reason I mention real estate (either buying or renting) is because although when living here in a peso economy, the cost of living is definitely less, the cost of real estate here is not cheap, although I will say I feel it is very good value for what you get. Read the “Real Estate” section in related topics below for a better understanding of this topic.
But whatever your income, be assured it will go further in Mexico. Food, labor and goods manufactured in Mexico are extremely affordable. For instance, you can have a maid or gardener for the equivalent of US$2.50 to $3.00 an hour. A man’s haircut for $40 pesos ($3.80 US), high speed broadband for $340 pesos ($32 US) a month and best of all property taxes for about $550 to $2200 pesos a year ($50 to $200 US). Transportation is another real bargain with bus fare in Lake Chapala around $7 pesos ($0.64 US). Eating out is also a real bargain. |
| |
 |
Rod Burylo, Chartered Financial Planner from Canadians Retiring Abroad had this to say about the cost of living in Mexico compared to Canada:
"When they venture off the beaten path to these lesser-known communities, retirees also enjoy another one of Mexico's attractions: a low cost of living. With a wide choice of restaurants (many of them owned by expatriate Canadians and Americans) and with multi-course meals still available for 90 pesos (approximately $10 Cdn), it is not unusual to find Canadians dining out most nights. For those who like to cook, a basket of goods is generally priced at one-half to one-third of most Canadian retail prices.
The more ambitious retirees can pursue another cost-savings aspect of Mexico. Those who take the trouble to establish residency in Mexico (by completing a process of severing Canadian ties and establishing new, Mexican ties), can achieve a significant reduction in personal income tax." |
|
| |
Foreign residents are not taxed on money brought into Mexico.
Taxes on interest, dividends and capital gains are mi nimal and usually withheld at source. Should you decide to work or do business in Mexico, you will be subject to income tax. See "Taxes in Mexico". |
| |
Shopping for Groceries – we’ve got it all…
You can expect the initial cost of living to be a little higher when you first arrive, until you have discovered the alternative locations to shop and feel comfortable in the Mexican markets. There are thousands of traditional markets (mercados) and street markets (tianguis) throughout Mexico. Most towns have at least one permanent market as well as weekly street markets. The wise consumer will check out prices on domestic products before purchasing the imported goods you are more familiar with. In addition to saving you money, it causes you to sample Mexican goods that you will be totally unfamiliar with.
The tianguis sell everything from fruits and vegetables, fish and meats to flowers (beautiful arrangement of cut flowers from U.S.$3.50 - I get them every week), paintings, art, cosmetics, clothing, shoes, dishes, pots and pans, and Mexican handicrafts; at incredible prices. Most fruit and vegetables and bulk products (like cereals, grains, legumes) are sold by the kilo. You will be amazed at (Most often, the domestic produce is fresher, has no long storage time in warehouses, is vine ripened and more flavorful.) They are set up each morning in a different village at about 8 a.m. and taken down around 3 p.m. of the same day - Monday in Chapala, Wednesday in Ajijic and Thursday in Jocotopec.
Shopping in the local supermarkets (supermercados) for your produce is considerably more expensive; these stores generally cater to the foreign community. Having said that, the reality is most of us do frequent these stores to buy some of the imported goods we just can’t seem to live without. Imports of course cost more and you can keep your grocery bill down by buying local. The advantage we have here is we can choose; the infrastructure is in place. Whatever you are longing for, likely you will find right here on the lakeside, from Cajun spices, Campbell’s tomato soup, Wasabi and pickled ginger for Sushi and just about anything you can imagine – even Eggnog and Mincemeat at Christmas - Superlake in Ajijic specializes in imported goods. It is really quite amazing what we have access to. We feel we have the best of all worlds.
And did I mention many Mex-pats also make a monthly trip into Guadalajara (2nd largest city in Mexico a 50 minute drive) to visit some of the major department stores: Wal-Mart, Price Club, Costco, Sams, Office Max, Office Depot, Stables, Sears, Liverpool and maybe stop for lunch at Applebees, Tony Romas or any number of other franchises from back home that have been expanding their businesses into Mexico. |
| |
| |
Restaurants
One of the really special treats in the Lake Chapala area is the incredible abundance of excellent restaurants offering a wide variety of cuisine. Check out the “Eating Out” section below under Related Topics. You’ll be astonished at the variety and pleasantly surprised when you get your bill at the end of the evening. Unlike north of the border, your bill won’t automatically appear – you must ask for it. It is considered impolite to present you with your bill when you haven’t yet requested it.
One of our favorites is a new Argentinean restaurant in Ajijic where you can get a U.S. imported steak dinner perfectly cooked to order for under $100 pesos (US$10), and would you believe a bottle of decent Chilean red wine for $100 pesos (US$10). Doesn’t get much better than that. Plus the waiters speak English and the menu is in both English/Spanish.
Eating in some of the more basic restaurants can be even more economical and somewhat of an adventure as you try to decipher what’s on the menu.
Also in the “Eating Out” section you’ll find we have a vast variety of nightly entertainment, much of it without cover charge. |
| |
| |
|
Tipping In Mexico, waiters, maids in hotels, porters and bag boys/girls rely heavily on tips as their wages are very low – not unlike north of the border.
Taxis quote you the fare and it isn’t necessary to tip additional unless they handle your baggage (US$1 per bag) for you or wait while you are shopping etc. Typically it is the same in the airport or the hotel – US$1 per bag. It is also customary to tip the chambermaid in the hotel US$1 per night.
Tips to waiters in restaurants are similar to back home – 10% to 15% depending on the service. However, if you find yourself in a small very basic restaurant don’t be surprised if the bill is extremely cheap; in which case you might want to up the tip a little – after all the service is the same.
The bag boys/girls at grocery stores that pack your groceries typically earn no salary and rely entirely on tips. Two to five pesos would be appropriate depending on the number of bags and whether they carry to the car for you.
Gas attendants aren’t normally tipped unless they do some additional service like window washing, air in tires, etc. At just about every stop light in major cities, someone will try to wash your windshield. If you don’t want it washed, be quick. Say “no gracias” (firmly) and wag your finger back and forth in a “no” fashion. Sometimes they will still go ahead and start washing the windshield. You can repeat your “no” and hope they stop or you can let them continue and pay them. We tend to do a little of each, depending on our mood at the time and whether or not the windshield is dirty or has just been cleaned at the last light. When you do tip, the appropriate amount is about $2 pesos. |
| |
 |
| | |
|
