So many people want to know about the cost of living in Mexico and Mazatlan in particular, so here is one person’s story. See the ForRent page for information on various rental options and costs.
A guy I know recently approached me about doing a website for him. His story and lifestyle is, I think, worth putting on the web as he is trying to make a point about the range of available standards of living here in Mexico.
Let's call our friend Mark. Mark lived in the US up until a few years ago when he had a bad car accident. He is 43 and was put on permanent disability due to his injuries. Unfortunately, neither Mark nor the other driver had much insurance, so he got little other than his medical bills paid.
Mark now lives in a studio apartment 3 blocks from the Mercado Centro that he recently moved into from his older place as the rents were going up. He has no AC, or computer, and no TV, or hot water. He does have a small stereo system, a microwave, fridge, and hotplate. The building and neighborhood is quiet and safe. He has no car, no phone, and few other possessions.
Mark’s typical day is getting up at 9am and spending most of the day out around town walking or visiting with folks. At night he reads, writes, and listens to music or SW radio. It’s a fairly quiet and simple live. Some might call it boring. Mark looks like any other Gringo you pass in the street.
Here are Mark's major costs (in pesos per month):
- Food:
- Breakfast is typically fruit and coffee at home - sometimes eggs and toast. ($20/day*30) = $600.
- Lunch is always a bar where a "free" lunch snack is served and he has 2 beers ($16/day*30)= $480.
- Dinner is a "comida corrida" place where an excellent and substantial meal is $40. ($40/day*30) = $1200.
- Housing:
- Rent $1200.
- Electric $150.
- Bottled water $120.
- Other:
- Bus fare $600
- Phone card $450
- Laundry $600
- Clothes $250
(Note, at the time of this writing, there are approximately 10.5 pesos to the US dollar)
Mark’s total monthly expenses, which he has tracked for months now, are around $6000. His disability check is $7600 a month. That leaves Mark a cushion of $1600 a month for other costs like dental, medical, entertainment, travel. Some months are better than others and Mark has virtually no savings, but he is a pretty happy guy. Mark is happy to be alive and happy to have his time to himself. He believes that he lives pretty well here in Mazatlan.
Could Mark make it in the US on his $730 disability check? Is this how a typical person would expect to come and retire in Mexico?
The answer to both questions is, probably not. Mark just wants to let people know that its possible, especially for people on fixed incomes (vets, SSI, Social Security), to live here. Mark claims he could live here even cheaper - in a smaller town and without going out for food as often. He doesn’t like to cook.
By comparison, our budget for 2 adults, which I also have tracked for quite a while, is around $1700 a month and we pay no rent (we own our house). We don’t live extravagantly, but we spend as much on food and entertainment as Mark’s entire budget. We have health insurance and a car (although its pretty old) and we both still work part time. We think we live very well here compared to the US, especially considering we live in a beach town on the Pacific coast. Also, we both had to work full time to pay the bills in the US.
The point you ask? Well Mark’s point is that you could live in Mexico for $500 a month if you had to. My point is that your cost of living is impossible to determine without someone knowing exactly how you want to live and what your expectations are for life in Mexico.
DavidShafer July 16, 2005
By Marlene Santana July 16, 2005
Important Note; There is more that needs to be added here, and it has to do with Immigration status and living in Mexico legally.
Primarily, there is a minimum income requirement by the Mexican Government to qualify for an FM3, something necessary to legally live here year around. The minimum income requirement for a single renter is over $1000.00 USD a month. With the income shown above "Mark" doesn't meet this basic requirement.
This leaves "Mark" either living here illegally, or taking trips out of the country every 6 months to re-enter on a new tourist card.
My personal impression of Mark is that he's not the kind of guy that would lose sleep over the precise expiration dates on his FMT. However, Mark does indeed go to Texas every summer for a few weeks and at Christmas to visit family. The bus fare is $130 US round trip. That would add $250 pesos a month to his expenses. That's still less than the $6000 pesos quoted above as his total monthly expenses.
Mark could obtain an FM3 by showing deposits in a bank account for 3 months totally $1100 a month, but the yearly renewal cost of the FM3 is about the same as a single roundtrip bus ticket. By going back to Texas, Mark gets to spend some time with his newphews and he says he lives "free" at his brother's house.
The base for calculatimg FM3 income requirements is the Mexican minimum wage which was $46.80 pesos (less than $5 US a day) in 2005. The FM3 minimum income requirement is 250 times the minimum wage. So, for 2005 it is $11,700 pesos ($46.80 x 250 = $11,700).
Some people have obtained an FM3 by simply showing a bank account with sufficient funds for 1 year's living expense ($13,000). There are also many types of FM3's. Our FM3 documents have no annual income requirements attached.
For those that own a home in Mexico, the FM3 minimum income requirement may be reduced by 50% (rules and requirements vary by office). If you could swing buying an inexpensive home, you would only need a $600 monthly income - assuming you wanted to obtain an FM3.
For more information see GettingAnFM3 and StartingABusiness
Again, Mark wanted me to emphasize the point that he believes its possible for those living on a fixed income to do so in Mexico with a higher standard of living than would be possible in the US.