About the Cost of Living in Mexico

Many people wonder about the cost of living in Mexico. Perhaps they wish to travel there long term, or have a business idea. Others may want to retire to Mexico for more affordable living. Some hope to reunite with family members and find work. Here's how to budget for a life south of the border.

Instructions

History

1. For generations, people have traveled and relocated to Mexico, partially for financial reasons. Real estate, fresh food, public transportation and labor were bargains compared to prices in the United States, Canada, Europe and Australia. In recent years, however, Mexico's prices have steadily increased, making destinations such as Central America, South America and parts of Asia a better bargain. With perseverance, you can still find an affordable cost of living in Mexico.

Geography

1. Your cost of living in Mexico largely depends upon where you settle. The more expensive spots are Puerto Vallarta, San Miguel de Allende, Cuernavaca, and the fancier neighborhoods of Monterrey, Guadalajara and Mexico City. Expatriate neighborhoods typically have more conveniences and luxuries, thus raising prices. In nearly every part of Mexico, you can find an affordable rental and a cheap neighborhood market. In general, living near the U.S.-Mexico border will cost more, but if you plan on traveling to the United States frequently, you will save money in transportation costs.

Considerations

1. The cost of living in Mexico is cheap for those coming from the coasts of the United States, but it is more expensive than living in a small town in the Midwest. Health care in Mexico is a bargain by United States standards, except that there is no medicare coverage. A doctor's checkup in most of Mexico will cost under $30, without insurance. Fresh local fruits and vegetables are extremely cheap compared to those in the United States, but processed foods are more expensive. For those moving to temperate regions of Mexico, you will have little need for heat or air conditioning, so your energy costs will plummet. Household help, such as maids, gardeners, cooks and nannies, is affordable in Mexico. Wages are around $2.50 to $4.50 per hour, depending upon the region. If you're addicted to cheap Chinese imports, though, Mexico will be a surprise. Tariffs make many common household goods quite expensive. It is cheaper to find handmade, and often better-quality, items made in Mexico.

Warning

1. Moving to Mexico on too little money is a dangerous proposition. There is no state welfare system. People seeking permanent residency must prove a minimum income, which rises each year. People staying in Mexico on tourist visas are required to cross a border every six months before reentering the country. Visas and paperwork will incur annual expenses. It is difficult to seek work in Mexico as a foreign citizen, unless you wish to teach English, because you must prove that you have specialized skills to do work that a Mexican applicant does not. Starting a business in Mexico requires licenses and paperwork, but is viable and legal. It is also legal to accept pay from online employment from your home country, or to receive your social security benefits.

Expert Insight

1. Seasoned travelers, expatriates and snowbirds in Mexico share their insights on how to discover if Mexico is affordable and right for you. They recommend doing extended tours of the regions in which you are most interested. While in Mexico, connect with other members of the expatriate community, and ask them about living expenses. Also visit online forums and Yahoo! groups that discuss the cost of living in Mexico.