Everything in Mexico is on Sale…Here’s Why

My wife Diane and I are far from wealthy. Yet, as I was paying my bills online recently, I glanced out the window of my condo at the beautiful colors of the Caribbean Sea only a few steps away. Turning back to my computer, I happily noted the amount of money that remained in our checking account from the previous month.

If we still lived in the States, we’d be living an entirely different lifestyle. Our decision to retire overseas almost five years ago, has provided increased financial security and a boatload of adventures that a retired life in the U.S. simply wouldn’t permit.

When Diane and I left the U.S. for Ecuador, it was for the reduced cost of living, and to enjoy an enhanced lifestyle in a new and wonderful country. And, it remains the case today as we now live in Cancun on Mexico’s Caribbean coast.

Many retirees overseas report immediate savings of 30% to 50% each month over what they were spending to live in the U.S. These days, Mexico is offering an additional 25% overall savings on top of the already discounted cost of living.

Essentially, our current Caribbean lifestyle in Mexico, complete with housekeepers, a multi-level condo on the beach, a nice car, travel, and many evenings in nice restaurants costs less than 50% of a very modest life in the U.S.

For American expats living in Mexico, whose retirement and other income is received in U.S. dollars, the entire country of Mexico is virtually on sale. The strong position of the U.S. dollar against the deflating Mexican peso is the reason for the current financial windfall. All you have to do to take advantage is earn U.S. dollars and spend Mexican pesos. That’s it.

Here’s an example: The lease on our condo is locked for 20,000 pesos each month. (A tip: We negotiated our lease in pesos rather than dollars. That’s important). When we first moved in a few years ago, and for the first few months, that 20,000 pesos converted to about $1,300 monthly. That’s a great deal for what we have and we couldn’t find anything close to what we have in the U.S. for that price. And it’s on the Caribbean, only steps from the beach.

But it gets better…

Over the past year, but particularly over the past six months, that same 20,000 pesos has converted to fewer and fewer U.S. dollars. This month our rent payment converted to $975. So the extra $325 can go into savings, or tequila, or whatever.

And I mentioned that we are living in Cancun…the number one vacation destination in the Caribbean. The weather is most often dominated by ample sun and warm breezes with temperatures normally in the 80s F. The clear, warm, turquoise waters of the Caribbean Sea bathe the tropical, white beaches and offer gentle breezes to those wiggling their toes in the sparkling sand.

The good news is that the entire country of Mexico offers the same discount no matter what region or city you choose.

Mexico is a wonderful country with beautiful landscapes, a rich history, and modern infrastructure including medical care that rivals any in the world for a fraction of the cost in the U.S.

And now, all this inexpensive wonderfulness just got a whole lot cheaper.

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