The 14 Best Places to Retire for as Little as $1,200 a Month

The 14 Best Places to Retire for as Little as $1,200 a Month
Living well overseas on just $1,200 a month is possible in welcoming, affordable towns.|©iStock/rustamank

Retirement overseas doesn’t have to come with a big price tag. In fact, in the right places, it’s possible to live well on just $1,200 a month. That budget can cover rent, food, transportation, and even entertainment, while still leaving room for comfort and community.

From the mountains of South America to the shores of Southeast Asia, we asked our contributors to share what life really looks like on this budget. Their insights are rooted in daily experience, complete with the numbers that matter most—rent prices, grocery bills, utility costs, and more.

Taken together, their stories show that a fulfilling retirement abroad doesn’t require wealth, but rather a willingness to adapt, to live like a local, and to embrace new surroundings.

Here are 14 destinations where $1,200 a month can open the door to a rich, rewarding life.

Albania

Coastal charm and low-cost living in Albania.
Coastal charm and low-cost living in Albania.|©iStock/zm_photo

By Norm Bour

The question of whether you can live in Albania for less than $1,200 a month at first gave me pause. My gut reaction was, “I don’t think so.” That impression probably came from staying in Tirana, the capital and one of the most expensive places in this country of fewer than three million people. Our neighborhood, Blloku, is considered the hip, trendy area. During Soviet times, the “nomenklatura” elite lived here. But here’s the good news: there are many places in Albania, including parts of Tirana, where a couple can live on less than $1,200 a month.

Real estate prices vary dramatically, from the outrageously expensive cosmopolitan areas to quiet rural villages. You don’t need to live in the middle of nowhere to save money in Albania. If you’re after a mellow, sedate lifestyle, you’ll find hundreds of towns that fit the bill. If you’re willing to share a larger home with access to a kitchen and a private bath, you can do that for just a few hundred dollars a month. Considering the average gross monthly salary here is less than $1,000, and the minimum hourly wage is $2.75 (since 2023), many homeowners supplement their incomes by renting rooms. Someone earning $1,500 a month in Albania is considered well off.

For most of us who prefer to live independently, utilities are still quite reasonable. Many rentals include them, though electricity can be an add-on, especially if you use air conditioning frequently. In many parts of the world where food is inexpensive, expats often skip kitchens altogether, surviving with a kettle and maybe a hot plate. In Albania, you can make either lifestyle work. Elijah and Heidi Thompson, for instance, currently live in Tirana but previously rented a one-bedroom apartment near the beach in Vlore for $350 a month. Their utilities were about $75, and they generally spent about $20 a day on food, often eating out. Between rent and food, they stayed well under $1,200 a month.

The couple travels half the year across 10 different countries, spending six months in Albania. Even though they’re only 23, they aren’t drawn to touristy expenses. They left for Albania the day after their wedding in Dallas and treat their extended travels as a honeymoon. As Elijah put it, they don’t “fixate on their budget.” Everyone has their own comfort zone, but living on a modest budget here doesn’t mean sacrificing comfort. Most expats want basics like air conditioning, a private bath, and a kitchen, but other amenities are negotiable.

In Albanian cities, you don’t really need a car since public buses cost just $0.48 a ride in Tirana. A four- to six-hour regional bus ride to another city costs only $5 to $15. Imported goods at grocery stores can be pricey, but produce and fruit markets are abundant and affordable. Surprisingly, two people can often live as cheaply as one. Rental prices aren’t much different for one versus two people, though your food budget, transport, and entertainment will naturally increase.

Jen Noble, 43, lives in Saranda, a popular beach town, on under $1,200 a month. Her rent is $350, she enjoys daily coffee at $2 a cup, and she mostly eats fresh produce and yogurt, with the occasional meal out. A former Chicagoan, she splits her time between Greece and Albania, staying under budget in both places. She isn’t alone—Australian expat Helen Avaient, 60, pays about $465 for a two-bedroom place and even owns a bar in town.

You can live in Albania for $1,200 a month, but to increase your odds you should follow a few guidelines: live like a local, eat like a local, and seek longer-term rentals. Short-term Airbnbs probably won’t cut it. Whether you choose the capital, the coast, or a rural village, a modest but fulfilling life on a $1,200 budget is entirely possible here.

Bali, Indonesia

Laid-back island lifestyle at a fraction of the cost.
Laid-back island lifestyle at a fraction of the cost.|©iStock/Nuture

By Roland Dalton

Yes, living in Bali for $1,200 a month isn’t just possible, it can enable you to enjoy a lifestyle far superior to what you might manage in the West. It won’t be the Instagram-ready, beach club, pool party experience of a two-week holiday, but with smart choices and a slower pace, you can live a full, adventurous, and deeply rewarding life.

This budget can even cover a gym membership at $25 a month per person, a fortnightly Balinese massage for $10 an hour, a monthly pedicure for $6, a man’s haircut and shave for $5, and all your laundry washed and ironed for around $30.

Rent is the largest expense. In the busy south, where most tourists stay, you can find accommodation for around $500 a month, though this often means small, basic places with shared kitchens or bathrooms. More appealing, hotel-style options such as the classic Sorga Cottages offer rooms for about $400 a month with breakfast and access to a swimming pool, right in the heart of Bali.

But you can find much better value in places like Sanur, Sidemen, and Amed in the east, or in the quieter, remote western part of the island, where the cost of living drops dramatically. Here, you’ll discover colorful fishing fleets in Perancak village, the chance to volunteer at the Kurma Asin Sea Turtle Conservation, Bali’s only national park on your doorstep, and some of the island’s most peaceful beaches—all free to enjoy. Local Facebook groups are a useful tool for finding rentals. Basic utilities, including water, electricity, and internet, average about $80 a month.

Food is one of Bali’s best perks. International restaurants are unbeatable for quality and price, and if you combine them with local Balinese and Indonesian eateries, you could eat out every night. Favorites include Crave in Seminyak, Warung Catina on Legian Beach for cheap and excellent seafood, Wayang Warung for generous portions of both local and Western dishes, and Lusi Warung for a beachfront breakfast. Grocery shopping at the Bintang supermarkets is about 20% cheaper than in the U.S., though imported items cost more. For the best savings, shop at market stalls where fruits and vegetables are at their cheapest.

Entertainment options are plentiful, from beachfront bars like Joseph’s—simple setups with plastic chairs, good food, and drinks at excellent prices—to cultural activities and outdoor adventures. For transport, Grab (the ride-hailing app) is inexpensive, with one-hour journeys under $20. For short hops, ojeks (motorbike taxis) are convenient, just agree on the price before riding. Monthly scooter rental is about $80, with fuel another $20, though driving in Bali requires care as the roads can be chaotic.

Keep in mind that prices double during high season in July, August, and Christmas, and traffic becomes far heavier. Dining and entertaining in tourist-heavy areas will also stretch your budget faster, so avoiding beachside rentals and sticking to local neighborhoods is the best advice.

Bali remains significantly cheaper than the United States, and living here on $1,200 a month is very doable. By embracing local culture, slowing down, and savoring a simpler lifestyle, you can live richly, healthily, and happily without overspending.

Bulgaria

History, culture, and modest living in Bulgaria.
History, culture, and modest living in Bulgaria.|©iStock/Media Trading Ltd

By Mary Charlebois and Kevin Scanlon

What does life for two at $1,200 a month look like in Bulgaria? It is a comfortable lifestyle, covering a modest apartment, home-cooked meals, and public transport. There isn’t much room for luxuries, frequent dining out, or expensive travel, but $1,200 is more than enough to pay for rent, food, utilities, transportation, and even some modest entertainment.

As in most countries, your monthly costs will depend on location. Sofia, the capital, is the most expensive, while smaller cities such as Varna on the Black Sea or Plovdiv, Bulgaria’s cultural hub, are more affordable. A one-bedroom apartment in Sofia averages $685, while in Varna or Plovdiv, a similar apartment costs about $500.

Shopping locally helps stretch your budget. If you buy seasonal, locally grown produce and meats, two people can enjoy a nutritious and diverse diet for around $245 a month. Dining out is still possible, though not frequently. A dinner for two at an inexpensive restaurant averages $18, while saving eating out for special occasions ensures you stay within budget.

Utilities are manageable. A basic monthly bill for electricity, water, and internet averages about $100, depending on usage, and mobile phone service is another $18. Transportation is also affordable. Public transit is efficient and cheap, and Bulgaria’s train system—though old—is being modernized, with new high-speed routes available. Trains remain an inexpensive way to travel across the country or even further into Europe.

Entertainment fits within this budget as long as you focus on low-cost or free options. Bulgaria is rich in natural beauty, from its mountains and valleys to its beaches, and exploring them is free. Cultural events are celebrated year-round, often at no cost, while a movie ticket is about $7.

At $1,200 a month, two people can live a modest but satisfying lifestyle in Bulgaria. By embracing local traditions, savoring affordable seasonal food, exploring the landscape, and enjoying cultural events, expats can live comfortably in this beautiful and welcoming country.

Cambodia

Affordable living and vibrant street life in Cambodia.
Affordable living and vibrant street life in Cambodia.|©iStock/tbradford

By Ryan Nemura

Cambodia has long been an overlooked country in Southeast Asia, but it offers plenty of advantages for retirees. A couple can live comfortably in the capital, Phnom Penh, on $1,200 a month, though costs are even lower in smaller cities such as Siem Reap, Kampot, or Battambang.

Housing is where many expats see significant savings. In Phnom Penh, a one-bedroom apartment in a modern building, furnished and with cleaning services, a gym, and a pool, rents for about $400 a month. Simpler shop-house style apartments rent for closer to $300. In smaller towns, a furnished apartment can be found for as little as $200. Utilities are affordable, though electricity can be the largest bill—$70 to $100 a month if you run an air conditioner at night. Water is inexpensive at about $5 per month, though drinking water must be purchased. A five-gallon jug delivered to your home costs $1.50. Internet is often included in rent, but when it isn’t, it usually runs no more than $20 per month. Cell service is cheap and reliable, with plans available for about $1 per week.

Food is another area where retirees can save considerably. Eating out is inexpensive, and many expats find themselves cooking less than they did back home. A typical breakfast of rice noodle soup with pork costs $2.50. A stir-fry with rice runs around $3. A couple eating three local meals a day would spend about $540 a month. Street food is even cheaper, with a bowl of rice porridge with chicken costing as little as 75 cents. For those who prefer international dining, options are plentiful: $5–$10 per person at mid-range restaurants, or $20 each at fine French establishments in elegant surroundings. Grocery shopping is also affordable if you stick to local items. A week’s worth of tropical fruits is about $5. Chicken breast is $3.50 per kilo. Beer costs 60 cents a can, and tomatoes are $1.50 per kilo. Imported goods, however, can be expensive—for example, a liter of olive oil costs about $16.

Transportation is inexpensive and accessible. Many locals rely on scooters, with monthly costs—including fuel, maintenance, and parking—totaling about $5. Expats who prefer not to drive can use ride-hailing apps to book tuk-tuks, which charge about 40 cents per kilometer. Even longer rides across Phnom Penh rarely cost more than a few dollars.

Entertainment is both abundant and affordable. Local craft markets, concerts, and Cambodian kickboxing matches are often free. Weekly quiz nights at bars are a popular social activity. A modern cinema ticket costs just $3. Pickleball, which has become increasingly popular, is available at $6 per hour for a court rental.

For retirees willing to embrace local housing, food, and transportation, Cambodia offers a comfortable lifestyle within a $1,200 monthly budget. It is possible to live simply and inexpensively while still enjoying international comforts when desired.

Colombia

Comfort and coffee culture in Colombia’s smaller cities.
Comfort and coffee culture in Colombia’s smaller cities.|©iStock/Frazao Studio Latino

By Erin Donaldson

With $1,200 a month in Colombia, you’re not sipping cocktails in Bogotá’s Zona Rosa every night, but you’re also not scraping by. Think of it as a shopkeeper’s life—humble but comfortable, with access to middle-class perks like decent housing, fresh food, and occasional outings. Smaller cities are where this budget shines, offering a slower pace, less emphasis on material things, and more focus on life’s simple pleasures. You might even squeeze in some travel to charming small towns, which is harder to do in pricier countries.

Renting a two- or three-bedroom apartment in cities like Pereira, Bucaramanga, Manizales, or Armenia is surprisingly affordable, around $250 to $400 a month for 50–60 square meters. These apartments may not come with a pool or gym, but they are solid, functional homes in safe neighborhoods. In bigger cities like Bogotá, Medellín, or Cartagena, you’d likely spend more on rent or have to live farther out in a smaller space, often with long commutes.

Transportation is manageable. In Manizales, known for its safe and efficient bus system, you’ll spend about $50 a month on buses and the occasional taxi or Uber. Buses are clean, reliable, and rarely overcrowded. In Pereira, walking is often an option thanks to pleasant weather, though longer trips can take up to an hour.

Food costs are reasonable if you cook most of your meals at home. About $200 a month covers groceries and fresh produce from local markets—perfect for Colombian soups, arepas, and sancocho. Eating out once a week at a casual restaurant won’t break the bank, and even a splurge at a fine dining spot with cocktails and dessert comes in around $50 for two.

Utilities and services run $50 to $100 a month, depending on the neighborhood, with cell phone plans averaging $20. Even small luxuries, like regular manicures or pedicures, are inexpensive at about $30 a month.

The best part is the lifestyle. Imagine mornings in a $300-a-month apartment in Manizales, sipping fresh Colombian coffee on your balcony before walking to a local market or cinema. With $1,200 a month, you can live comfortably, enjoy occasional treats, and embrace the relaxed, fulfilling life Colombia offers.

El Salvador

Budget-friendly living amid volcanoes and beaches.
Budget-friendly living amid volcanoes and beaches.|©iStock/hbrizard

By SJ Armstrong

As the Central American nation continues to thrive under its newly instituted sense of safety, El Salvador is becoming an increasingly desirable destination for relocation. In the capital, San Salvador, this recent change has been paired with a rapidly rising cost of living. However, amid the country’s verdant volcanoes and along its black sand shoreline, savvy spenders can still keep their expenses under $1,200 a month.

While in the capital a one-bedroom apartment can run upwards of $750 per month at the lowest end of the scale, the country’s second city, Santa Ana, has a much more affordable price tag. Living slightly outside Santa Ana’s bustling center, renters can expect to pay under $300 per month for a two-bedroom home. In the heart of the city, close to amenities, that same $300 still secures a one-bedroom apartment. For those on a budget but unwilling to give up the perks of city living, it’s an ideal option. Total monthly utilities average around $100, meals in local eateries cost less than $5, and the entire city can be explored for the price of a $0.35 bus ticket.

Though it’s cheaper to walk around the city and its lofty surrounds, the country is still fairly car-centric, and a vehicle or a willingness to use public transport is advised. Gasoline costs about $1 per liter, and monthly car insurance typically runs from $50 to $100. Private health insurance is also advisable, with premiums ranging from roughly $50 to $150 per month.

Those who prefer to settle amid the flower-topped adobe alleys of one of the country’s smaller towns can also live extremely comfortably on $1,200 a month. Rents for modest homes along the scenic “flower route” fall within the $200 to $300 range. Popular towns such as Ataco, Apaneca, and Juayua offer affordable dining and entertainment options, as well as good transport links to the capital.

Along the coast, investment in vacation properties and Airbnbs has driven rents up in some areas. Still, it’s easy to find a secluded beachfront home if you’re willing to look beyond the sleek new builds popping up along the shore. In popular destinations in La Libertad department, sea-view homes can still be found for under $350 a month. Add in a world-class surfing scene and ultra-fresh seafood for under $10 at a local restaurant, and local entertainment is easy to enjoy on even a tight budget.

Despite a higher price tag compared to some neighboring Central American nations, it’s absolutely possible for two people to enjoy a comfortable lifestyle on $1,200 in El Salvador. Low rents and utilities outside the capital allow for more room in the budget to spend on food and entertainment. For those willing to look beyond San Salvador and embrace the vibrant local culture, life here easily fits into a modest monthly budget in this small nation on the rise.

Latvia

Affordable small-town life in scenic Latvia.
Affordable small-town life in scenic Latvia.|©iStock/Starcevic

By Mary Charlebois and Kevin Scanlon

In Latvia, two people can live on $1,200 a month. With careful budgeting, a comfortable life is attainable, covering rent, food, utilities, transportation, and modest entertainment. While there is little or no room for luxuries, a balanced lifestyle is possible.

Monthly costs vary by location. Riga, the capital, is the most expensive, while smaller cities such as Kuldiga, a UNESCO World Heritage Site, and Cesis, known for its medieval castle, are more affordable. Housing is the biggest difference. In Riga, a one-bedroom apartment averages $965, but in Kuldiga or Cesis, a similar apartment costs only $290.

Food is reasonably priced if you shop locally. Purchasing seasonal produce and meats provides a healthy and sustainable diet for about $320 a month for two people. Cooking at home is essential to stay on budget, but fresh ingredients are plentiful and of good quality.

Utilities add to the cost of living, with electricity, water, and internet averaging about $210 a month. A mobile phone plan runs about $32. Transportation, however, is an area of savings. There’s little need for a car—public transit and walking are the best ways to get around. For longer trips, trains are an excellent choice, and Latvia’s rail fares are among the lowest in the world.

Entertainment can remain affordable by focusing on low-cost or free activities. Exploring towns, markets, and the countryside is free, and cultural events throughout the country are often inexpensive or open to the public. A movie ticket costs around $7.

Living in Latvia on $1,200 a month is feasible with careful planning. Renting in smaller cities keeps costs manageable, while cooking at home, relying on public transit, and enjoying cultural and outdoor activities make for a satisfying lifestyle within a modest budget.

Lithuania

Simple, balanced living in Lithuania’s smaller cities.
Simple, balanced living in Lithuania’s smaller cities.|©iStock/

By Mary Charlebois and Kevin Scanlon

With careful budgeting, living on $1,200 a month in Lithuania allows for a comfortable lifestyle, especially outside of the capital, Vilnius. A budget of this size for two people covers rent, food, utilities, and transportation, with even some modest entertainment possible, though luxuries are limited.

Monthly costs vary by location. Vilnius is the most expensive, while smaller cities such as Šiauliai, a historic town in the north, or Panevėžys, a river city with a vibrant arts scene, are more affordable. A one-bedroom apartment in Vilnius averages about $875 a month, but in Šiauliai or Panevėžys, a similar apartment rents for closer to $500.

Food is affordable if you shop locally. Abundant seasonal produce and meat make for a wholesome, varied diet for around $350 a month for two people. Cooking at home is the best way to balance the budget and stretch your dollars further.

Basic utilities, including electricity, water, and internet, average about $145 monthly, depending on usage. A cell phone plan costs about $25 per month. Transportation is straightforward; public transit and walking cover most needs. For longer trips, Lithuania’s modern, reliable trains connect cities and also provide inexpensive travel throughout Europe.

Entertainment can be found at little or no cost. Exploring cities, markets, and the countryside is free, and cultural events are plentiful across the country. Movie tickets are about $8.

Living on $1,200 a month in Lithuania is feasible, particularly outside Vilnius. With careful planning, expats can cover housing, groceries, and utilities while also enjoying the local culture and nature. Cooking at home and relying on public transport help keep costs low while maintaining a rewarding lifestyle.

Nicaragua

Community and comfort on a budget in Nicaragua.
Community and comfort on a budget in Nicaragua.|©iStock/IherPhoto

By Bonnie W. Hayman

If your goal is to save money on your total living expenses, Nicaragua is a great country to accommodate a couple’s budget of $1,200 a month. Of course, there’s a caveat. You may need to make a few adjustments to your expectations, as prices in Nicaragua have increased in 2025, just as they have in the rest of the world.

I’ve learned that you can tell people one thing, and they may hear something entirely different. This often happens when those of us who have successfully lived abroad on a budget tell others who have never done it. When I say “modest living,” meaning a small house a few blocks from the beach, they picture a medium-sized cottage with an ocean view. When I recommend having a frugal food budget and sticking to it, they interpret that as buying fewer jars of kalamata olives and fancy cheeses. And when I suggest being creative about keeping cool in your home, they envision air conditioning in every room. Unrealistic expectations are the number one reason people are disappointed after a move abroad.

The truth is that you absolutely can live in Nicaragua for $1,200 a month, but you will have to adapt and live like a local. Rent from a Nicaraguan rather than a foreign landlord, and you’ll not only pay less but also find yourself in a local community, where your Spanish will improve and you’ll make genuine friendships. Furnishings may be modest, but utilities are often included, and with patience and creativity, you can make any house comfortable. Eating like a local is essential, too. Shopping in big supermarkets such as La Colonia will quickly blow your budget, while central markets are filled with fresh produce, meats, and staples at much lower prices. It is best to skip the imported cheeses and steaks.

Electricity can also be a hidden cost if you insist on air conditioning in every room. A wiser choice is to invest in fans and limit AC to a single bedroom for sleeping. Location matters as well. By living near the center of town, you can walk or take inexpensive local transport, avoiding the high costs of owning a car. Even entertainment should be approached with limits. A few outings each month are affordable, but frequent dining, bar-hopping, or trips will stretch your budget too far. A local phone plan is far less expensive than standard contracts, and it is best to avoid the party lifestyle altogether, since drinking and drugs not only harm health but also quickly eat into your monthly allowance.

Kept simple, a realistic monthly budget for two comes to about $600 for rent, $100 for utilities, $40 for phone service, $300 for food, $100 for entertainment, and $60 for transportation. That brings the total to $1,200, with all necessities comfortably covered.

If you are ready to embrace a simpler life abroad, you may find yourself refreshed, strong, and happy—truly enjoying a fulfilling life. Living like a local in Nicaragua gives you a sense of freedom you may never have experienced before, and often an even bigger sense of accomplishment.

Peru

Fresh food and rich culture at a low cost in Peru.
Fresh food and rich culture at a low cost in Peru.|©iStock/Meinzahn

Peru has become one of South America’s most attractive retirement destinations, thanks to its affordability, cultural richness, and varied landscapes. Beyond Cusco, retirees can choose from colonial cities, coastal towns, or rural valleys, all with their own character.

“Like every country, Peru has cities with ritzy neighborhoods where rent alone is over $1,200. However, a modern one-bedroom apartment in Cusco is $250 to $400 a month, including water, electricity, and utilities. The smaller the town, the cheaper the living expenses are in Peru,” says Heather Jasper, a contributor living in Cusco.

“Dinner out at the top restaurants in Cusco costs $30 to $50, but in Lima, the capital city, prices double. Buying fresh fruit and vegetables from local markets is delicious, healthy, and costs about $20 per person per week. Public transportation is easy if you speak a little Spanish. In Cusco, the bus costs 30 cents, taxis cost $2 to $3, and a seat in a van to nearby towns costs $2 to $5, depending on the distance.”

Arequipa, known as the “White City,” enjoys 300 days of sunshine a year and a mild climate. Apartments in the historic center are available for about $600 a month, while smaller units outside the core cost even less. The Sacred Valley near Cusco offers an alternative for those who prefer village life, with small houses renting for under $300. Trujillo, on the northern coast, combines colonial charm with nearby beaches, where freshly caught seafood is abundant and inexpensive.

Food is one of Peru’s biggest draws. Local markets overflow with fresh fruit, vegetables, and meats, often at half or even a quarter of U.S. prices. Eating out is also affordable. A hearty meal in a local restaurant costs a few dollars, while world-class Peruvian cuisine, like ceviche, can be enjoyed for far less than comparable dining in North America.

Getting around is simple and affordable. Public transportation, including buses and inexpensive domestic flights, makes it easy to explore the country.

Altogether, Peru offers a lifestyle that’s both rich and affordable. On $1,200 a month, retirees can enjoy comfortable housing, fresh food, dependable healthcare, and a slower pace of life in one of the world’s most culturally vibrant countries.

Romania

Affordable homes and rich traditions in Romania.
Affordable homes and rich traditions in Romania.|©iStock/Aivita

By Mary Charlebois and Kevin Scanlon

Living on $1,200 a month in Romania can provide a comfortable lifestyle, especially outside the capital, Bucharest. With that budget for two people, you can cover rent, food, utilities, transportation, and modest entertainment.

Monthly costs vary by location. Large cities like Bucharest take more of your budget, while smaller towns like Craiova, near the east bank of the Jiu River, and Sibiu, in the Transylvania region, offer more for your money. Living in a smaller city or town lowers costs, especially rent. A one-bedroom apartment in Bucharest averages around $555, while in Craiova or Sibiu, a similar apartment rents for about $385.

Groceries for two average about $200 a month. Cooking at home helps balance the budget, but dining out can still be part of the plan. A dinner for two in an inexpensive restaurant costs around $11.

Basic utilities—electricity, water, and internet—average $204 monthly. A basic mobile phone plan is about $20.

With a $1,200 budget, owning a car may not be practical. Public transportation and walking are the most cost-effective ways to get around. Trains are the best choice for trips to other parts of Romania or Europe, and Romanian trains are cheaper than buses.

Entertainment can also fit within the budget. Many cultural events are free, such as traditional village festivals that highlight local crafts, music, and food. A movie ticket costs about $5.50.

Living in Romania on $1,200 a month for two people is manageable, particularly in smaller cities. You can afford a cozy apartment, cover groceries and utilities, and still enjoy occasional dining out and cultural events, making for a rich and balanced lifestyle.

Sri Lanka

Island living and vibrant culture in Sri Lanka.
Island living and vibrant culture in Sri Lanka.|©iStock/Andrey Danilovich

By Roland Dalton

Yes, it certainly is possible to live a carefree, tropical island life in Sri Lanka for $1,200 a month, or even less, if you follow some simple guidelines. This budget allows not only for rent and food but also for regularly eating out, evenings at beachside cafés and bars, a weekly massage, a gym membership, and plenty of island exploration.

As with anywhere, location dictates costs. In the south, where most tourists and wealthier expats gravitate, rents and general expenses are higher. But Sri Lanka is blessed with many friendly towns along postcard-perfect beaches and beautiful bays, especially in the east and northwest. In places like Arugam Bay, Batticaloa, and Trincomalee, you can rent a simple, modern apartment close to the beach, with a kitchen and fridge, for between $275 and $350 a month.

One good practice to keep utility bills low is to rely on a ceiling fan instead of air conditioning, which can quickly drive up costs. Even with occasional A/C use, monthly utilities rarely exceed $70. A mobile phone plan with data costs about $6.50, and unlimited home internet runs around $13.50.

Food is one of Sri Lanka’s highlights—fresh, inexpensive, and delicious. Restaurants of every standard are everywhere. A straightforward local meal can cost as little as $1.50 per person, while a substantial dinner for two with beer is about $10. Western meals are widely available, usually around $20 for two, including drinks, and even splurging on a colonial hotel dinner comes in under $30 per person. Cooking at home with ingredients from local markets saves even more. These markets brim with fruits, vegetables, spices, and fresh seafood at prices that make it possible to cook a meal for $10 that would cost ten times more in North America. A loaf of bread is $0.50, a kilo of chicken breasts $4.80, a kilo of bananas $0.80, and a kilo of tomatoes $1.30.

Transportation is convenient and remarkably cheap. A five-hour train ride costs $4.20, or just $1.10 in third class, and offers some of the most scenic rail journeys in the world. A five-hour taxi trip runs about $70, while a short two-mile tuk-tuk ride is $1.50.

With its low costs, natural beauty, and welcoming culture, Sri Lanka offers an affordable lifestyle on $1,200 a month or less. Embracing local ways not only stretches your budget but also enriches your life, making it more adventurous, interesting, and rewarding.

Thailand

Affordable expat living and rich culture in Thailand.
Affordable expat living and rich culture in Thailand.|©iStock/Javier Dall

By Rachel Devlin

If you are happy with a simple life and spend most of your time outdoors exploring, you can save a lot on rental expenses in Thailand. In Chiang Mai, for instance, you can find plain rooms with a bathroom for as little as $63 a month, or $120 with air conditioning. These local condos scatter the periphery of the Old City, making them a convenient and affordable choice.

The savings can then go toward Thailand’s incredible food scene. Around these complexes, Pad Thai, chicken curries, and papaya salads are available for as little as $2.50. For fitness and transport, a second-hand bicycle costs about $60 and is all you need to navigate the Old City and beyond. Entertainment is also affordable thanks to the abundance of free cultural events. Local temples host public ceremonies, popular festivals fill the calendar, and local universities offer free concerts and lectures. Payap University’s Life-Long Learners program even provides courses on Thai culture for as little as $10, which is also a great way to meet fellow expats.

Weekly expat meet-ups at local restaurants make it easy to find the “tribe that you vibe with,” and Western meals can be had for as little as $6 each. Alcohol tends to be more expensive, but even so, you can find budget-friendly expat bars where cocktails cost about $4.70 and a beer $3.80.

Even on a tight budget, there’s room to save for regional travel. Flights to surrounding countries are affordable, with tickets to Da Nang, Vietnam, running about $165 each way and to Vientiane, Laos, around $132. Budget hotels in those destinations start at just $30 per night, making short trips accessible.

Northern Thailand is one of the most affordable regions in Asia for expats. On $1,200 a month, you can cover rent, food, and entertainment while still enjoying the bonus of a large and active expat community, whether you prefer city life or a quieter rural setting.

Vietnam

Street food, beaches, and low costs in Vietnam.
Street food, beaches, and low costs in Vietnam.|©iStock/hadynyah

By Wendy Justice

Two people can live comfortably almost anywhere in Vietnam for $1,200 per month or less, even in the urban areas. With this budget, you can rent a modest apartment or house in a good neighborhood, dine out as often as you like, and still have enough left to travel or enjoy the occasional splurge.

Last year, I rented a 500-square-foot furnished apartment in Hanoi for $265 per month. It had air conditioning, heating, a fully equipped kitchen, a living room, a bathroom, and a separate bedroom with a queen-size bed. The rent included twice-weekly housekeeping and all utilities except electricity, which never exceeded $50 in a month. Single-family houses can cost even less, though these typically do not include utilities or housekeeping. Most accommodations are comfortable, though they may be located down an alley or lack a scenic view. If the unit is on an upper floor, it’s likely to have an elevator. Almost everywhere, even at modest prices, you’ll find air conditioning and fiber-optic internet.

Internet and phone service are among the cheapest in the world. Prepaid mobile phone plans cost as little as $3.40 per month for 30 GB of data. If you need cable TV and internet together, packages start at $3.79 monthly. Experienced housekeepers charge between $2 and $4 per hour, depending on location, with higher rates in urban areas.

Local produce, meats, and dairy products are affordable, especially at traditional markets, where vendors often offer better prices and fresher goods than supermarkets, especially once they get to know you. A pound of Vietnamese coffee from the market costs about $3, and locally grown rice is around 50 cents per pound. Cooking at home with market goods, two people can eat well for about $230 per month. Supermarkets charge slightly more but are convenient for one-stop shopping.

Dining out is inexpensive, too. Fresh and filling street food meals cost around $3 per person, while dinner for two at a good mid-range restaurant, including drinks, is typically $10 to $13. On a $1,200 monthly budget, you could enjoy all the street food you want, several meals out at mid-range restaurants, and even the occasional splurge.

Transportation is another bargain. Public city buses cost between $0.27 and $0.45 each way. Ride-hailing app taxis average about $1 per mile, while motorbike taxis are about a third to half less. Since cities are compact, walking is often the cheapest and easiest way to get around. Couples relying on a mix of walking, buses, and taxis likely won’t spend more than $25 a month on local transportation. Vietnam’s budget airlines regularly offer promotions, with domestic flights sometimes costing $30 or less each way, and long-distance buses are even cheaper.

Entertainment is plentiful and affordable. The country offers more than 1,000 miles of free public beaches as well as excellent trekking and sightseeing. A day trip on a group tour runs about $25 per person, including a guide, transportation, entrance fees, and lunch. A movie for two costs around $10, excluding snacks. Many towns and cities also host free concerts and public events, so there’s always something to do.

With its low living costs, warm culture, and endless opportunities for exploration, Vietnam offers one of the best values in Asia. On $1,200 a month, you can live well and still enjoy much of what this fascinating country has to offer.

$1,200 a Month in IL’s Core Countries

While this article highlights more than a dozen destinations where $1,200 a month goes far, many of IL’s most popular retirement countries can also work with this budget. The key is location and lifestyle.

Take Mexico, for example. In hotspots like San Miguel de Allende, Playa del Carmen, or Puerto Vallarta, $1,200 may feel tight. But move to smaller towns inland or quieter coastal stretches, and you’ll find rents in the $400–$600 range, fresh produce at bargain prices, and affordable public transport. Similar patterns hold in Costa Rica, where beach towns on the Pacific coast can push your budget, but mountain communities offer comfort and community well within a $1,200 budget.

The bottom line: with smart choices about where you settle, and a willingness to live like a local, it’s possible to make $1,200 a month work in the “big name” expat havens, too.

Final Thoughts

Across Latin America, Eastern Europe, and Asia, our contributors show that $1,200 a month is not just a survival budget—it’s a gateway to comfort, community, and new experiences.

The common thread is clear: where you choose to live makes all the difference. Smaller cities and towns offer far lower housing costs than capitals, leaving room in the budget for food, utilities, and leisure. Cooking at home, shopping local, and relying on public transport stretch every dollar further. And in each destination, you’ll find an abundance of free or low-cost entertainment—from local festivals to mountain hikes to evenings at the café.

Retirement on $1,200 a month may not come with extravagance, but it brings something more valuable: freedom. Freedom from financial stress, freedom to explore, and freedom to savor daily life in welcoming, affordable communities around the world.

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