Bahia, Ecuador’s Coastal Jewel—$1,600 per Month

Cotacachi, Ecuador’s Perfect Getaway—$1,573 per Month

Cuenca, Ecuador’s Most Attractive City—$1,415 per Month

Quito, Colonial Ecuador and Hidden Valleys—$1,600 per Month

Vilcabamba, Ecuador’s Valley of Longevity —$1,075 per Month

Bahia, Ecuador’s Coastal Jewel—$1,600 per Month

Patricia Farmer, her husband Ron and their two nervous cats arrived at their new home in Bahia, Ecuador, in February of this year. The couple knew no one, but as retired educators they had done their homework and settled in fast.

Years living and teaching in Southern California meant the couple was spoiled by the warm climate and beautiful beaches. That’s one of the reasons Bahia appealed to them…they wanted beach living, at affordable prices.

Endless miles of pristine, sandy, warm-water beaches stretch out to the north of the city. Go south ninety minutes and you’re in Manta, a large port city with an upscale mall, enormous supermarket…everything you could wish for.

The couple estimates that their cost of living now averages one fifth of what it was in California. They live in a nice high-rise condo overlooking the ocean and pamper two spoiled cats in need of gourmet food. They also get to indulge their love of fine dark chocolate, good Chilean wines and eating out with friends. They enjoy a very comfortable lifestyle—even more luxurious than they had in California.

Patricia and Ron’s Monthly Budget

Rent: $500

Electricity: $60

Water and sewer charges: $12

Drinking water (daily delivery of a five-gallon bottle, including tip): $50

Gas: $3

Internet: (high speed access): $55

DirecTV: $50

Cell phone: $20

Transportation: (taxi to Manta and surrounding areas): $70

Health insurance for two (Cruz Blanca): $80

Groceries: (including wine, beer, and expensive cat food): $400

Household items (toilet paper, cleaning products, cat litter etc): $90

Vitamins: $30

Toiletries: $80

Dining out/entertainment: $100

Total: $1,600.

Cotacachi, Ecuador’s Perfect Getaway—$1,573 per Month

Jack and Debbie Moss have lived in Cotacachi, in Ecuador’s highlands, for two years. Originally from South Florida, they looked at several other countries, as well as destinations within Ecuador, before deciding on the small town of 8,000 people.

“Since Ecuador’s official currency is the U.S. dollar, there are no problems determining the cost of any goods or services. Local products and labor is quite reasonable, but imported goods are more expensive,” says Jack. “At the local market, large eggs are $1.20 a dozen, bananas are 17 for 50 cents, avocados are a quarter each, long stem roses are a dollar a dozen while fresh raspberries, strawberries and blackberries are a dollar a quart.”

Jack and Debbie’s Monthly Budget

Rent (they own their condo): $0

Property tax: $5

Condo fees: $100

Electricity (four TVs, electric washer and dryer, electric dish washer): $45

Water and sewer charges: $3

DirecTV:  $100

Internet:  $50

Cell phones (two):  $35

Transportation (by taxi): $75

Health insurance (for two on IESS—Ecuador Social Security): $115

Groceries (includes wine):  $550

Household items:  $50

Maid (one visit per week):  $50

Vitamins (sent from the U.S.):  $100

Toiletries: $20

Dining out/entertainment:  $125

Miscellaneous (donations, etc.): $150

Total:  $1,573

Cotacachi, Ecuador’s Perfect Getaway—$580 per Month

It is possible to live on less in Cotacachi—even without owning a property. Lee and Peg Carper aren’t your typical retired couple. Not by a long shot. For one thing, they’re younger than most retirees—he’s 56 and she’s 53. They don’t play golf or bridge; they don’t take art lessons or babysit grandkids. They don’t read the newspapers, watch television or surf the Internet.

Lee and Peg also live in Cotacachi, which is two hours north of Quito. Like the clock above the town park with hands permanently stopped at 1:07, time stands still here. It’s the Mayberry of the Andes.

Even though they live in one of the most beautiful spots on the planet, they are not too worried about stretching their retirement dollars. That’s because their total monthly expenses are less than $600. This includes food, utilities, medical expenses, dog food, and even the rent on their new 1,200-square-foot apartment. An additional $100 covers miscellaneous expenses including cigarettes and a couple of cases of beer.

Lee and Peg’s Monthly Budget

Rent: $150

Food: $250

Water: $6

Electricity: $13

Propane: $7

Medications: $50

Laundry: $24

Housecleaning (maid twice a week): $40

Dog food: $40

Total: $580

Cuenca, Ecuador’s Most Attractive City—$1,415 per Month

Moving south, let’s take a look at what things cost in Cuenca. Nestled in the Ecuadorian highlands and with a population of just under a half million, this vibrant colonial city is the country’s third largest conurbation. It’s located in a picturesque valley at about 8,200 feet above sea level and enjoys a moderate climate all year round.

Cuenca’s climate, pace of life and peppering of colonial building has made it popular with tourists and expats alike. Then, of course, there’s the cost of living. Here, you can live more cheaply than in Quito, but still find most of the big-city amenities. Below, we’ve included the cost of a car although most expats in Cuenca find they don’t need to own one.

Sample Budget for a Couple in Cuenca

Housing (rental of a luxury two-bedroom apartment): $500

Utilities (including phone, Internet and CATV): $150

Maid (twice a week): $60

Groceries: $300

Maintenance and fuel for one car: $140

Clothing: $70

Entertainment (dining out eight times per month plus other): $175

Health care: (four $30 visits to a doctor per year for two people): $20

Total: $1,415.

Quito, Colonial Ecuador and Hidden Valleys—$1,600 per Month

The Ecuadorian capital just drips with history. Modern Quito was founded by Spanish settlers in 1534 but by then the site had already been home to an ancient Inca city for centuries. Its population of two million lives among the remnants of the colonial era…buildings that make up the jewel in Ecuador’s architectural crown.

Here’s a sample budget for a couple living well in Quito. The expenses are approximate, but we’ve erred on the side of extra spending to come up with a budget that allows for a very comfortable lifestyle.

Sample Budget for a Couple in Quito

Housing (rental of a luxury two-bedroom apartment): $600

Utilities (including phone, cable TV and Internet): $150

Groceries: $325

Entertainment (two dining out eight times a month and other entertainment): $225

Health care (four $30 visits to a doctor per year for two people): $20

Maid (twice a week): $60

Clothing: $70

Total: $1,600

Vilcabamba, Ecuador’s Valley of Longevity —$1,075 per Month

Vilcabamba, meaning “Sacred Valley,” is a small rural town resting in a secluded mountain basin in southern Ecuador. Known for its picturesque natural setting and peaceful, slow-paced way of life, it was once used as a holiday retreat by Incan royalty.

The town is also notable because its residents live to remarkably old ages. Whether it’s the minerals in the water, the high anti-oxidant levels in the local fruit and vegetables or the steady climate that has made 100-plus-year-olds a common occurrence is still unknown.

Sample Budget for a Couple in Vilcabamba

Housing (rental of a three-bed apartment in town or a three-bed country home): $300

Maid (twice a week): $60

Utilities: $50

Phone charges: $20

Health care (four$30 visits to a doctor per year for two people): $20

Clothing: $30

Maintenance and fuel for one car: $140

Water rights (for one family, which varies between neighborhoods): $2

Eating out (six times per month): $175

Groceries: $250

Total: $1,075