The Real Cost of Living in Mexico: It Depends on the Life You Want
One of the questions I hear most often from people considering a move to Mexico is:
“How much does it really cost to live there?”
It’s a reasonable question—but there isn't one simple answer.
I know people who live simply and comfortably in Mexico on $800–$1,000 USD a month. I also know people who spend $5,000 or more. Both are realistic. The difference usually isn't Mexico but the lifestyle you want.
What Kind of Life Do You Want?
When I help people relocate to Mexico, one of the first things we talk about isn't their budget. We talk about how they want to live.
Do you want to live in a walkable neighborhood where you can get almost everywhere on foot? Do you want a large house with a yard? Do you want to eat out several times a week? Do you want private health insurance? Do you plan to travel frequently?
All of those choices affect your monthly expenses. And where you live within a city can be just as important as which city you choose.
A less expensive city isn't necessarily less expensive for you if living there means you need a car, spend more on transportation, or live far from the restaurants, markets, medical care and activities you enjoy.
What Does a Comfortable Lifestyle Cost?
As a point of reference, I live in San Miguel de Allende, which is considered one of the more expensive cities in Mexico.
I've lived in Mexico for almost 10 years, and I've learned where I want to spend my money—and where I don't.
I live comfortably on less than $2,000 USD a month. But that's my lifestyle.
For a couple looking for a comfortable lifestyle in Mexico—with a nice home, good food, health insurance and some room for discretionary spending—I would use approximately $3,500 a month as a starting point, with a $500-or-more cushion in either direction.
Here's how I would roughly break that down.
Housing: $1,000–$1,500
In many Mexican cities, you can find a very nice two-bedroom, two-bath home or apartment in a convenient neighborhood for somewhere around $1,000–$1,500 a month. But this is one of the biggest variables.
You can spend considerably less in some cities and neighborhoods, while desirable neighborhoods in places such as San Miguel de Allende, Mexico City or certain coastal communities can cost considerably more.
And remember: the cheapest rent isn't always the best value. A home that's $300 cheaper but requires you to have a car may not actually save you money—or make your life easier.
By the way, make sure you check out my guide:
“House Hunting in Mexico: 20 Costly Mistakes to Avoid When Buying or Renting a Home in Mexico.”
It covers many of the things I recommend people look for before committing to a home.
Utilities, Internet & Cleaning: Around $200
If these aren't included in your rent, I'd budget roughly another $200 a month for electricity, gas, water, internet and household cleaning. Again, this can vary considerably depending on the home, the climate and how much electricity you use. Air conditioning, for example, can make a significant difference in some parts of Mexico.
Cell Phones: Around $25–$50
Cell phone service can be surprisingly inexpensive compared with the United States. I managed to keep my U.S. number while also having a Mexican number on the same phone. I pay about $23 a month for this.
Transportation: Potentially Very Little
This is one of the areas where your choice of neighborhood can make a huge difference.I live in a walkable part of San Miguel and walk almost everywhere. When I need transportation, I occasionally take a bus or taxi.
Because I don't need a car for my everyday life, my transportation expenses are minimal. For someone living in a neighborhood where a car is necessary, the calculation changes dramatically once you add gas, insurance, maintenance, registration and the cost of the vehicle itself.
Walkability can be a big money-saving decision.
Health Insurance: A Major Variable
Health insurance is another expense that can vary substantially based on your age, health history, deductible and coverage.
For a couple in their 50s who are in good health and have no pre-existing conditions, you might find private coverage somewhere in the neighborhood of $400–$500 a month for two people, depending on the policy. For older adults, premiums can be substantially higher.
The good news is that you don't necessarily need insurance for every medical expense. Doctor visits, dental care, laboratory work and many other healthcare services can be quite affordable when paying out of pocket.
Food: It Depends on How You Eat
This is probably one of the hardest categories to estimate. You can shop at local markets and cook most of your meals at home.You can shop at large supermarkets and buy many of the same products you bought in the United States.
Or you can eat out frequently. And Mexico makes that last option particularly tempting.
You can have an excellent meal at a local restaurant without spending anything close to what you might pay for a comparable meal in the United States. But if you eat at upscale restaurants several times a week, buy imported products and shop at premium grocery stores, your food budget can climb quickly.
So What Does It Really Cost?
For a couple seeking a comfortable lifestyle, I'd use $3,500 a month—or about $42,000 a year—as a reasonable starting point.
That might look something like:
Housing: $1,000–$1,500
Utilities, internet and cleaning: ~$200
Phones: ~$50
Transportation: $100–$200
Health insurance: ~$400–$500
Food and eating out: $700–$900
Miscellaneous, entertainment and other expenses: $300–$500
That's not a strict budget. It's a starting point.
Some couples will spend considerably less. Others will spend considerably more. And that's really the point.
Don't Ask, "Is Mexico Cheap?"
Instead, ask:
“What will the life I want cost me in Mexico?”
That's a much better question. If you want a simple life in a smaller Mexican city, don't need a car, cook most of your meals and live like a local, your expenses can be remarkably low.
If you want a large home in a desirable neighborhood, eat out frequently, travel extensively, drive a car and maintain a lifestyle similar to what you had in the United States, Mexico can still be less expensive—but it may not be cheap.
And there's nothing wrong with either approach. The goal isn't to move to Mexico and spend as little money as possible.
The goal is to create the life you want at a cost that works for you.
That's why, when I help people plan a move to Mexico, I don't start by asking, “How much money do you have?” I start by asking:
“What kind of life do you want to live?”
Once you answer that question, you can start figuring out what your life in Mexico is actually going to cost.
Thinking About Moving to Mexico?
If you're considering a move to Mexico and would like some guidance, I'd be happy to help. Over the years I've assisted hundreds of people through the relocation process and helped them avoid many of the common mistakes, frustrations, and surprises that can come with an international move.
I offer a complimentary 30-minute consultation where we can discuss your plans, answer your questions, avoid many of the common mistakes, and help you determine the best next steps for your situation. To learn more about my relocation services or schedule a consultation, visit my website.