If you are thinking about moving to and living in Mexico, one of the first things you need to know is how much the cost of living in Mexico is. Understanding the cost of living in another country is essential for planning your move. A lot depends on your needs, your lifestyle, and whether you buy or rent your home. Although living in Mexico is cheaper than in other areas of North America, some people still spend as much or more than when they were in the U.S. or Europe. Mexico is a large country. Where you live in Mexico will also affect the cost. There are large cities, rural areas, famous beach towns, and many tourist spots. Research a specific area of interest before making a decision about the country.
Purchasing Power of the Peso
No matter how much money you need to live well in Mexico, you will likely earn more than in other parts of the world. It is not surprising that the average household income in Mexico is not more than one-tenth of that in the U.S. Generally, almost everything necessary for your daily living needs is more expensive in the U.S., Australia, or Europe. Luxury items such as branded products, designer label jeans, and other high-end clothing or imported goods are an exception.
Grocery and Food
Grocery items in Mexico are 10 to 130 percent lower than in other countries. This is mainly because many products are grown there and do not need to be imported. Living in Mexico allows you to have more access to smaller markets and suppliers, which are often cheaper than going to a large grocery store. If you are willing to eat like a Mexican at the abundant small stalls serving delicious and inexpensive food, you can dine out all the time for about the same price or less than cooking at home.
Transportation and Housing
Public transportation in the U.S. is nearly 200% more than in Mexico. Gas prices also tend to be cheaper, and even if you are living in a smaller town, there are still plenty of public transportation options like vans and buses. Housing is also about 200% cheaper. Check out recent data compiled by Numbeo, a great detailed cost of living comparison between Mexico and the U.S. to see the comparisons. Of course, this depends on where you live in Mexico, as there are both cheap and very expensive areas throughout the country.
Total Costs
The lower cost of living is the main reason many people find it attractive to move to Mexico. If you are considering moving abroad, it would be very helpful to review your current living budget and then try to estimate what your budget for living abroad would be like. Be sure to consider international flights if returning to the U.S. is something you need to do frequently. Connecting with old friends living in the areas you are considering is a useful resource. They can provide comparable lifestyle budgets and will have knowledge about the area and overall costs.