Happy New Year and welcome to my first post of 2017!
I frequently receive emails from readers asking me for detailed information concerning our monthly expenses here in Mexico.
It’s important to point out that Mexico is a large country and the cost of living can vary significantly from one area to the next. We live in a popular tourist destination along the coast of the Riviera Maya, so the cost of living is significantly higher here than in many other parts of Mexico.
We live on a fixed income, which causes us to carefully track all expenses on a daily basis. That made it easy for me to collect the data for this post.
When we left the U.S., we sold everything and started over. That gave us the capital necessary to buy a condo and a car outright. Eliminating those two major expenses was key to living on a small budget south of the border.
Exchange Rate Used: 20 pesos to 1 USD
Monthly Household Expenses
- Water / Sewer: $158.23 pesos ($7.91 USD)
- Gas (for water heater and stove): $350.76 pesos ($17.53 USD)
- High Speed Internet + phone (Telmex 100mbps + unlimited calls to the U.S.): $999 pesos ($49.95 USD)
- Electricity: $2,125 pesos ($106.25 USD)
- Cable TV (Sky): $603.00 pesos ($30.15 USD)
- Monthly Homeowner’s / Maintenance Fees : $3,276 pesos ($163.80 USD)
- Two Cell Phones (unlimited calls / texts to the U.S., Mexico and Canada) *: $343.96 pesos ($17.99 USD)
- Expat Medical Insurance for both of us: $2,516 pesos ($125.83 USD)
- Car Insurance: $890 pesos ($44.50 USD)
Section Total: $11,261.95 pesos ($563.09 USD)
* The phone plan is through AT&T. We took advantage of buying 12 months of service and getting 12 months free. The price breakdown here is that amount divided over the term that we paid for. You can learn more HERE
If you want more information about the cost of medical care in my area, check out A Look At the Costs of Medical and Dental Treatment.
As long as you do not insist on only using products imported from your home country, grocery shopping is relatively inexpensive.
If you want to do some price comparisons on your own, check out Do You Want to Know What Things Cost Before Moving to Mexico?
We go out to eat most of the time. We are fortunate enough to live in an area with a wide range of restaurants to choose from. When we need to save some money in order to stay on budget, this is where we make our adjustments.
Low End: An entire roast chicken meal for two with corn tortillas and sides will average us $140 pesos ($7.00 USD).
High End: A fancier dining experience with drinks on the beach will average us around $1000 pesos ($50.00 USD), including the tip.
Note: Many restaurants in tourist areas will give local residents a discount of up to 20%.
Let’s Wrap This Up
At the current exchange rate, our monthly household expenses come to less than $600. If necessary, we could substantially reduce that amount but cutting out cable TV and opting for a slower Internet connection.
When we decided to leave our jobs and move to Mexico, we lost 67% of our annual income. The amazing thing is that our standard of living is arguably better than it was in the United States. We swapped our old house in an average neighborhood back in Florida for a modern condo located inside a beautiful resort complex in the Riviera Maya.
If you want to read a little more about where we ended up, check out Moving to Mexico: Expectations vs. Reality (Housing).
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