Sometimes when participating in an interview regarding life overseas, I often encounter the probing question, “How is it that your expenses can be reduced by half when relocating abroad?” Which expenses can diminish sufficiently to allow one to manage on $2,000 monthly as opposed to $4,000? Or to enjoy a comfortable lifestyle on a single Social Security check rather than merely getting by with two?
The responses are all variations of this singular truth: living expenses can fall by half or more when moving to another nation.
I observe this disparity daily as an expatriate in Mexico, and the same is true for the 80+ individuals I interviewed for the second edition of A Better Life for Half the Price. Here’s a breakdown suitable for both expats and digital nomads.
Non-Americans may not reap the same health care savings as we Americans, who are subjected to an overpriced, inefficient for-profit system. However, expect comparable savings for anyone transitioning from a highly developed nation to one that is less affluent. Remember to compare similar housing situations: moving from San Francisco to Buenos Aires or rural England to rural Portugal. You might not always achieve a 50% reduction if you shift from a small Nebraska town where you lived with your parents to a penthouse in Bangkok, for example.
Numerous facets of your life will see a reduction by half or more, making it quite feasible to cut your expenses to that extent. Simply changing your address or taking a trial trip will mean that only half as much money will be leaving your wallet. Here are the primary reasons.
Where Housing Costs Can Be Halved (at Minimum)
Finding something appealing in a sought-after neighborhood for under $2,000 monthly in a major U.S. city or prominent Western European cities is quite challenging, particularly when needing two bedrooms or more. In mid-sized Tampa, we struggled to discover anything suitable for less than $2,200, even last decade, to be located in the correct school district within a central area. In cities like NYC, Tokyo, or London, you might face rental or mortgage payments around $4,000 a month, and this could be just for a studio.
Zillow indicates that as of 2025, the average rental rate in the USA stands at $2,100 per month. In Massachusetts, New York, Hawaii, California, and DC, it exceeds $2,500. None average below $1,000, and those at the lower end are in red states that must entice people to move there, such as Oklahoma and North Dakota.
In the area of Mexico where I’ve resided since 2018, one can find a lovely two-bedroom house or apartment within walking distance to the center for $600 or less, and right in the heart of it all for $800 or less. If you were to pay the average amount to live in a U.S. or Canadian city of similar size, you’d undoubtedly be in a high-quality location. Additionally, your utility costs would be a mere fraction of what you currently pay, including high-speed internet.
Here’s what some interviewees for A Better Life for Half the Price reported paying:
– Keith & Tina Paul in Cuenca, Ecuador: $735 per month for a spacious, newly constructed 2BR apartment in a prime location.
– Kris & Joel in David, Panama: $385 monthly for a 2BR home in a neighborhood they adore.
– Ryan Shauers in Medellin, Colombia: $400 for a 1BR apartment, including utilities.
– Ron MacDonald in Buenos Aires: $650 monthly for a 2BR apartment with outdoor barbecue terrace.
– Jon Sterling in Tbilisi, Georgia: $400 for a furnished 1BR apartment in a sought-after area.
– James Leithart in Pogradec, Albania: $90 for a convenient one-bedroom apartment.
– Richard Sterling in Battambang, Cambodia: $140 monthly for a furnished 1BR apartment.
– Mariellen Ward in Rishikesh, India: $350 monthly for 1,200 square feet, with 2 bedrooms.
– Helen Davies in Penang, Malaysia: $625 per month for 1,600 square feet, featuring 3 bedrooms, on the 15th floor of a high-rise equipped with a pool and gym.
– Cory Varga living in Hungary: $800 monthly for a 2BR apartment near the Opera House in central Budapest.
Some individuals indicated that they are on the higher end of the market, such as Keith and Tina in Cuenca (where one can find a 1BR for around $450 easily), while Cory in Budapest mentioned being selective. One interviewee residing in Buenos Aires reported paying $1,200 per month, describing it as a “luxurious, impressive apartment in the city’s most expensive area.”
Labor Costs in More Affordable Countries
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