Living in Mexico for the past 7 months has given me a valuable perspective on the differences in cost of living between the United States and Mexico. One of the main motivations behind my move was to reduce my overall cost of living and set myself up for financial success as I entered the last year of my 30s. Little did I know that this decision would prove even more crucial when I got laid off just three weeks after relocating. Had I stayed in the United States, the sudden transition from making a comfortable $90,000 salary to relying on my severance package would have undoubtedly caused intense financial stress.

Mexico has provided me with a much more affordable lifestyle compared to what I was accustomed to in the United States. Housing, for instance, is significantly less expensive, allowing me to rent a comfortable home without breaking the bank. Daily expenses such as groceries, transportation, and dining out are also noticeably more affordable, enabling me to stretch my budget further. By embracing the local culture and lifestyle, I've been able to experience a fulfilling and vibrant life in Mexico while reducing my monthly expenses.

In order to give you a better understanding of the financial aspect of living in Mexico, I’m sharing with you a breakdown of my monthly expenses. This includes rent, utilities, transportation, food, entertainment, and other miscellaneous costs. By sharing my personal budget, you can gain insights into how much you might expect to spend in different areas of your life when living in Mexico. Whether you're considering a move for financial reasons or simply want to explore a new and exciting country, understanding the cost of living is essential for planning a successful transition.

Housing

Merida, Mexico offers a wide array of neighborhoods to choose from, each with its own unique charm and character. Having lived in three different neighborhoods prior to settling in Colonia Garcia Gineres, I have seen the diversity and appeal of the housing options in this city. Colonia Garcia Gineres stands out among the rest due to its proximity to the vibrant center of the city, Paseo de Montejo, and the tranquil atmosphere it provides.

When it comes to housing prices in Merida, they can vary significantly depending on the location and proximity to the city center. Renting a home in Merida can cost anywhere between $400 and $1,000 per month. The broad range is attributed to the variety of factors such as the size of the home, its location, and the amenities it offers. For example, I currently live in a charming shotgun-style house with an outdoor vestibule, a cozy living room separated by French doors, a breakfast nook, a remodeled bathroom, and a backyard garden with a pool. This is the right-size home for me and it’s only $500 USD per month.

In comparison to renting a home in the United States, the cost of renting in Merida, Mexico is generally more affordable. The lower end of the rental range in Merida may offer spacious accommodations at a fraction of the cost compared to similar-sized properties in major U.S. cities. Even at the higher end of the range, the rental prices in Merida tend to be more budget-friendly, providing tenants with the opportunity to enjoy a comfortable and well-appointed home without straining their finances. This affordability factor makes Merida an enticing destination for those seeking a lower cost of living without compromising on quality or comfort.

Food

Moving to Mexico, I wasn't quite sure what to expect in terms of food, especially coming from Texas where I had developed a love for Tex-Mex cuisine. However, living in a traditional Mexican city like Merida has been a delightful surprise for my taste buds. I am thrilled to say that I have fallen in love with the local cuisine and the vibrant food scene here.

Merida is home to a lot of restaurants, each with its own unique ambiance and an emphasis on fresh ingredients. Exploring new dining establishments has become a thrilling adventure, and on average, I find that a meal with an appetizer, entree, and drink typically costs me around $25 to $35. The affordability of dining out in Merida allows me to indulge in delicious meals without breaking the bank.

While dining out is enjoyable, I also appreciate the convenience and affordability of grocery shopping in Merida. I visit the grocery store once a week and spend approximately $50 to replenish essential home goods and food. When it comes to purchasing fruits and vegetables, I prefer to head to the local market. For just about $5, I can gather all the fresh ingredients needed to make my daily huevos a la Mexicana, a traditional Mexican breakfast dish consisting of eggs, avocado, tomato, cilantro, jalapenos, and onion.

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Additionally, I have discovered the convenience of ordering healthy and delicious lunches delivered straight to my home during the week. These meals, which have aided me in my weight loss journey, typically cost around $5 each. Given that I don't have a car in Merida, I opt for delivery services, which incur an additional cost of approximately $3 to $4. This combination of affordable groceries, delightful dining experiences, and convenient meal delivery has allowed me to savor new foods and flavors while maintaining a budget-friendly approach to eating in Merida.

Comparing the cost of food in Merida to that in the United States, it is evident that Merida offers a more affordable dining experience. Meals at restaurants in Merida are often significantly cheaper than their counterparts in major U.S. cities. The cost of groceries and fresh produce is also noticeably lower, allowing expats to enjoy a varied and nutritious diet without straining their budgets. Overall, Merida's food scene provides a delightful fusion of flavors, affordability, and culinary exploration that is sure to captivate any food enthusiast.

Transporation

Transportation in Merida, Mexico offers convenient options for getting around the city, especially for those who don't have their own vehicles. When I made the move to Merida, I left my car behind in the United States and relied on rideshare services to run errands and explore the city. With a population of one million people, rideshare has played a crucial role in my ability to reach destinations further away from my home, such as the Galeria or Costco.

In Merida, both Uber and Didi are popular rideshare options, but I personally prefer using Didi, which is a rideshare service based in Mexico. One noticeable difference between Uber and Didi in Merida is the time it takes for a driver to accept the trip. While Uber typically takes around 10 to 15 minutes, Didi tends to have a faster response time, usually within 5 minutes. This efficiency can be quite beneficial, especially when you're in a hurry or have time-sensitive appointments.

In terms of cost, rideshare services in Merida are generally affordable. The price for a 20-minute ride can fluctuate depending on the time of day, but on average, it amounts to around $5. This cost is significantly lower compared to rideshare prices in many major cities in the United States. The affordability of rideshare services in Merida allows for convenient and cost-effective transportation, enabling me and visitors alike to navigate the city without the need for owning a personal vehicle.

Overall, the availability and affordability of rideshare services in Merida, particularly Didi and Uber, make getting around the city a convenient and budget-friendly option. Whether you're running errands, exploring the local attractions, or simply getting from one place to another, rideshare services in Merida provide a reliable and efficient transportation solution.

Utilities

Managing utilities in Merida, Mexico requires some adjustments and considerations, but overall, it offers a reasonable cost of living. One aspect to note is the water heater, which needs to be turned on only when in use to avoid an unexpectedly high electric bill. Despite this precaution, the monthly water bill remains quite affordable, averaging around $10 per month.

Before moving to Merida, I was cautioned about the potential for high electric bills, but I found that it is often a result of individuals not monitoring their electric usage and overlooking the fact that the bill arrives every other month. However, my initial concerns were alleviated when I received my first electric bill, which amounted to just $40 USD. The absence of central air conditioning, which is typical in many countries outside the United States, also contributes to the manageable electric costs.

Due to the hot climate prevalent for most months in Merida, I have found myself relying on the air conditioning more frequently, particularly during the scorching months of April and May. As a result, I expect my electric bill to be around $100 for both of these months. While the increased usage leads to a slightly higher cost, it is still within a reasonable range, considering the relief it provides from the intense heat.

Additionally, other utility expenses include internet service, which typically costs around $50 USD per month. This allows for a reliable internet connection, enabling me to stay connected and work effectively from home. In terms of water, I have a 5-gallon water jug delivered weekly, which only costs $1.83 USD, ensuring a steady supply of fresh drinking water.

Overall, utilities in Merida offer a balance between cost and comfort. By being mindful of electricity usage, taking necessary measures to control expenses, and adapting to the absence of central air conditioning, it is possible to maintain a manageable utility budget while enjoying a comfortable living environment.

Pet Care

When it comes to budgeting for living abroad, one often overlooked but essential aspect is the care and expenses associated with our beloved pets. Shortly after moving to Mexico, I had the heartwarming opportunity to rescue a street dog named Max Galito. As any pet owner knows, having a furry companion significantly impacts your budget, especially when rescuing a dog.

In the first two months of welcoming Max Galito into my home, there were some initial expenses that needed to be addressed to ensure his health and well-being. These included bloodwork, multiple medications, vaccinations, and the important procedure of neutering. Thankfully, what I love about living in Mexico is the convenience of veterinary services coming directly to your home. Even for Max Galito's surgery, the vet and his wife made a visit to my home and picked us up, making the entire process stress-free.

In terms of ongoing expenses, Max Galito follows a raw food diet, which I order for home delivery each week. This amounts to approximately $15 USD per week to provide him with nourishment twice a day. Additionally, once a month, a groomer visits our home to give Max Galito a bath and clip his nails, which costs around $20 per month.

Taking care of a dog requires a supportive community, and I'm fortunate to have three people who help me with dog-sitting services whenever needed. Max Galito also benefits from a wonderful dog trainer who has assisted him in overcoming his fear of the leash and collar, as well as teaching him the joy of daily walks.

Raising a healthy and happy dog is a rewarding experience, and while it does impact the budget, the love and companionship they provide make it all worthwhile. Including pet-related expenses in your overall budget when living abroad is crucial to ensure that both you and your furry friend can enjoy a fulfilling life together.

My Monthly Budget

I understand the importance of providing comprehensive information to help you make an informed decision about moving abroad. That's why I want to share my personal budget with you, giving you a clear understanding of the costs associated with living in Merida. While there may be some months where I indulge in more activities like going to the movies or exploring new parts of the city, on average, my monthly expenses in Merida amount to approximately $1,500 USD. Let's take a closer look at the breakdown of these expenses:

Unexpected Expenses

Regardless of where you reside, unexpected expenses are an inevitable part of life. Even in my rented home in Merida, I have encountered unforeseen costs that have required my attention. The house I'm living in is an older property that has undergone renovations, but with age comes the possibility of unexpected issues. For instance, nearly two months after moving in, I faced a plumbing problem—a leak in one of the bathroom sinks. While the repair cost of $40 USD may seem relatively inexpensive to some, it is important to consider the context of the average wages here in Merida, where such an expense can still be significant.

In addition to plumbing issues, I have found the need to get help from a handyman on various occasions. One instance involved a broken ceiling that required repairs, while another instance involved seeking assistance with home decor. Due to the unique materials and structure of my home, it is impractical for me to handle certain tasks, such as mounting items on the wall, without professional help. These unexpected circumstances serve as reminders that we never know what challenges may arise on a day-to-day basis.

It is crucial to acknowledge the potential for unexpected expenses and ensure that we have financial reserves set aside for those situations. By preparing for the unplanned, we can better handle the unforeseen costs that may arise and maintain financial stability even when faced with unexpected challenges in our homes or daily lives.

How You Impact The Local Economy

When Americans move to Mexico, it's essential to recognize the impact we have on the local economy. Many individuals aspire to live a fulfilling life in Mexico without fully understanding the implications of our financial presence. I recognize my ability to live comfortably in Mexico is largely due to the fact that my money is in USD. The [sometimes] favorable exchange rate allows me to stretch my dollars further and experience a higher standard of living.

However, this dynamic also requires a heightened awareness of the potential consequences of overpaying for goods and services compared to what locals pay. For instance, the $500 USD I pay for my rental home is significantly higher than what most locals would typically pay. This discrepancy can contribute to pricing locals out of their own neighborhoods, exacerbating a serious issue that expats must be mindful of before relocating. It is a complex matter, as Americans are often assumed to be wealthy and capable of affording higher prices.

To navigate this situation responsibly and avoid inadvertently perpetuating economic disparities, it is crucial to connect with a trusted friend or local who is fluent in the language and well-versed in the culture of negotiation. This person can provide valuable guidance, helping expats strike a balance between enjoying a comfortable life and ensuring that their presence contributes positively to the local economy without negatively impacting the livelihoods of the local population. By being mindful of the economic dynamics at play and fostering respectful engagement, we can create a more equitable and harmonious environment for everyone involved.

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