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Who Lives in Mexico?
By "Mexico" Mike Nelson
I regularly give seminars at the Learning Annex in San Diego and Los Angeles. Most of my students are in their forties and fifties, with a  smattering in their twenties and some in their sixties.

One thing I've learned from my students is that there are many reasons for wanting to live in Mexico. The hundreds of emails I get each month fall along the same demographics.

That's why I talk about "living" in Mexico and not "retiring" to Mexico. The people I address are proactive, no matter what their age. There are as many Canadians interested in living in Mexico as Americans.

Cost of living in Mexico

As a general rule of thumb, you can live in Mexico for roughly one half to three quarters of what you spend in the U.S. or Canada, and have a comparable lifestyle. In many ways, it will be a richer lifestyle, in terms of freedom and peace.

Most foreigners live on $800-$1200 a month, and live comfortably. I know those who spend only $200 a month to live, but their lives are limited.

These figures include the cost of housing, food, local transportation or gas for your car, insurance and occasionally eating out. At the higher figures, a maid/cook is included. Please do not believe those who tell you that you can like a king for $600 a month. You can live, but you would have to rule a very small country to consider your status kingly.

Buying a house, while, in no way compares to California real estate, is not as inexpensive as you may think. It all depends on where you want to live.

If you live in a gringo town like San Miguel de Allende or Lake Chapala, you will pay premium prices – in the neighborhood of $80,000 to $200,000 for a house in a good neighborhood. If you live outside of these gringo havens, it is reasonable to expect to find a decent abode for $35,000 to $60,000. It all depends on what you want and what you are willing to give up.

In February, however, many prices fell – some to pre December prices For example, According to my Mazatlán correspondent, Ms. Barbara McLaughlin, tomatoes dropped from 23 pesos a kilo to about 5, with occasional specials of 2.5 pesos a kilo. Fifty products were put on a "stabilization" list by the government. Prices go up and down with no rhyme or reason. So, if I published exact prices, they would be out-of-date next week. It kind of reminds me of computer prices in the States. One thing is predictable – gasoline. It always goes up a few centavos a month. In February unleaded cost 4.34 pesos a liter., or $1.66 a gallon.

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In March, prices changed again. Tortillas, which had shot up as much as 50% in some places in January, have settled down to about 43% higher than they were in December (before the price controls were lifted) – from 3.5 pesos a kilo to 5 pesos a kilo. Gasoline and diesel go up about four centavos every month – but the Mexican Congress recently approved a 5% surcharge on diesel. Current unleaded gas costs 4.38 pesos a liter (16.64 pesos or $1.71 a gallon). Diesel is 3.63 pesos a liter or 13.8 pesos (US$1.43) a gallon (at 9.675 pesos/dollar).  [ 20 March 1999 ]

Working in Mexico

You can work, or start a business in Mexico, but not without a lot of courage and fortitude. It can be done, and is done every day, but it takes persistence. I would guess that three quarters of the American and Canadian go-getters who move to Mexico to "do things right" leave in frustration. You need to learn patience, humility and develop non-linear thinking to make a living as a foreigner in Mexico – unless you want to sell time-shares. Then you are in another world anyway.

Reasons for living in Mexico

Many just want a warm, comfortable climate where the living is inexpensive and the people are friendly. An equally large number want more out of life than just existing in a nine-to-five job that they hate, they want to live, and work, where they will be able to enjoy their life.

Some work for companies that are sending them to Mexico to work for one of their branches. A few are authors or painters (or would like to become one) who want to take some time to explore their creative self and create a masterpiece.

And there is that special category of people (like me when I first moved to Mexico) who are simply at the end of their rope and need a safe place to get their head back together.

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Many of my attendees are women (and men) who have just escaped from a bad marriage and want a place to figure out what life means.

The Most Important Advice

No matter who you are, where you want to go or what your income, please go to Mexico and visit for a several months before you pack everything up and move south.

Visit as a tourist for a couple of months, and if you like it, then try living in your chosen spot(s) for six months to a year before you decide it is for  you. Believe me, I have been thanked for this advice more times than I can count in the past decade. That doesn't mean that nobody I gave it to ended up living in Latin America.

It simply means that some of them found out quickly that it wasn't for them and saved themselves a lot of unnecessary expense. Others found out that it was very much for them, but had a much better idea of what to expect when they finally made the move.

While living in Latin America is certainly less hectic than living in our urban or even rural society, it will require some effort to adapt to a different lifestyle and way of doing things.

Living in Latin America means choosing how you want to spend your time. One thing that people living abroad have consistently asked me is to dispel the myth that they are merely living out their lives and doing nothing. These are the most active people I have ever known.

While some do flee South, buy or rent a little house and spend the rest of their lives watching sunsets, they are the exception. There are so many social activities and civic projects for retirees to be involved in that they must learn to manage their time or they will find themselves "working" too hard.

For those who are younger, there is an attraction to living abroad that is hard to deny. I did it in my twenties and thirties and found it to be a life changing experience.

For some, moving to An American colony is exactly what they are after. This name is something of a misnomer. It does not mean that groups of Americans (and Canadians) are the only inhabitants of a town. It merely means that a large number of foreigners live in a community.

They generally live in close proximity to each other in exclusive subdivisions, but there are usually several members of the foreign community who live in less expensive housing among the Mexican residents of the town. That is great if that is where you are at and you will certainly find your place in the sun in Latin America.

For others, moving to a foreign culture means becoming immersed in it. Most people are somewhere in-between. They want to experience and learn about the foreign culture, but they also want to be able to keep in touch with other foreigners. I will show you how to do that, as well.

The stories in my book Live Better South of the Border, and the articles in my newsletter, Latin America Travel & Business Report, will introduce you to the joys (and drawbacks) of living in Mexico. My purpose is not to encourage you to move there. I want to give you an honest evaluation of what living in Mexico is like. It may not be for you..

If you have to be concerned about every penny you will spend (and I am not putting you down – many people are on a very limited income and simply want the most for their money), then the only way to know what your own personal lifestyle will cost you is to go down and see. Excluding transportation, you should be able to make a trip to whichever country you choose and try it out for a little while without bankrupting yourself.

Go, enjoy. Live a little.

"Mexico" Mike Nelson is the author of a dozen books on Mexico and has been called an expert on Mexico by the Wall Street Journal, NY Times, Dallas Morning News and many expats who have moved to Mexico after reading his book, Live Better South of the Border. The book is available on this web page. To order his newsletter, or just to learn more, visit his website at http://www.mexicomike.com/.  This article has been adapted from Live Better South of the Border & Latin america Travel & Business Report newsletter.

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