Moving to Mexico: What You Can Afford on a $2,000 Monthly Budget

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Mexico’s affordability, combined with its rich culture, beautiful landscapes and year-round warm weather, makes it an appealing destination for expats seeking a better quality of life. In fact, twice as many U.S. nationals migrated into Mexico over the first four months of 2024 compared to last year, according to data from the Mexican government.

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The Mexico Relocation guide suggests that a monthly budget of $1,500 for a single person or $2,000 for a couple will give you a comfortable lifestyle that includes housing, meals and other essentials, thanks to the country’s significantly lower cost of living compared to the U.S.

Here’s a detailed look at what you can expect to afford on a budget of $2,000 (USD) per month, according to International Living:

Housing

Whether you’re looking to buy or rent, you’ll likely be getting a bargain compared to what you’re used to, though, of course, prices vary greatly by location.

For example:

• Puerto Vallarta: Furnished one-bedroom condos near the beach start at $600 per month.
• San Miguel de Allende: Two-bedroom apartments in the historic center start at $900 per month.
• Mérida: Centro Histórico one- or two-bedroom apartments for $600 per month, Progreso and barrier island beachfront condos for $500 per month.
• Riviera Maya: Condos within five minutes of the beach start at $1,000 per month.

Utilities and Internet

Electricity costs vary based on consumption, and using it sparingly can result in bills as low as $3 per month. However, high consumption can quickly raise costs to match those in the U.S.

Propane is commonly used for heating water and cooking. Solar water heaters, can reduce gas costs significantly, with annual expenses as low as $150-$200.

The main internet and telephone provider in Mexico, Telmex, offers high-speed internet and landline packages starting at around $20 per month.

Local cable TV plans range from $35 to $45 monthly, though English-language programming may be limited. Many expats prefer streaming services like Netflix and HBO.

Water costs around $20 per month, though the tap water isn’t drinkable unless filtered. Purified drinking water is an essential expenditure, costing about $2.50 for a 20-liter jug.

Food and Groceries

Local products are significantly cheaper than in the U.S., though obviously, you’ll pay a premium for U.S. brands. Dining out is a bargain, and with street food and informal cafes offering meals for $4-$8 per person and dinners at nice restaurants coming in at under $20 per person, you’ll probably want to spend less time in your kitchen and more time enjoying the local dining scene!

International Living estimates that a couple might spend $430 per month on grocery shopping and $320 per month on dining out and other entertainment.

Transportation

Car ownership in Mexico (including maintenance, fuel and insurance) averages around $170 per month, compared to around $40 per month for public transport, which is excellent value. Bus fares are generally 50-60 cents per ride, and taxis and ride-sharing services are around $2-$5 within cities.

Healthcare

With a temporary or permanent residency visa, you can access the Mexican Social Security Institute (IMSS), with annual costs ranging from $450 to $1,085, including medications. Medical care in Mexico is excellent and affordable, even without insurance. Specialist visits cost $50-$75, while basic consultations at pharmacies are under $5. Overall, healthcare costs are a fraction of those in the U.S.

Miscellaneous Expenses

Household and personal care items in Mexico are definitely budget-friendly. Men’s haircuts cost $12-$20, women’s are double, and a relaxing massage is just $20-$30 per hour. You can enjoy a movie for $5 or catch a concert for $5-$20. Gym memberships and sports club fees vary, but parks and cultural events are often free or cheap.

While you might be charged for garbage pickup, fees are generally low depending on where you live, ranging from $30 to $40 per year. For household services, Spanish-speaking housekeepers typically cost around $5 per hour, while those who speak English charge $7 to $10 per hour. This rate also applies to cooks, gardeners, and other domestic help, making hiring support for various household tasks affordable.

Living Well on Less in Mexico

With a monthly budget of around $2,000, you’ll be able to live an enjoyable, vibrant lifestyle without breaking the bank. You can rent a comfortable apartment or condo, enjoy fresh produce plus plenty of meals out and have money left over for entertainment like movies and concerts. Utilities are inexpensive, healthcare is a bargain even without insurance, and leisure activities cost a fraction of what you’d pay in the U.S.

Before making the move to Mexico, thorough research and planning are needed. Compare different locations to find your ideal spot in terms of both your lifestyle preferences and budget. Then you can create a financial plan that aligns with your lifestyle goals. Embracing life in Mexico on a $2,000 budget is doable whether you’re a retiree, digital nomad or just looking for a change in pace and location.

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