When Jen Barnett and Brett Andrews began seriously thinking about leaving the United States, they had some parameters for their new home.
The Birmingham, Alabama, couple wanted to live somewhere not too far from the beach, that had a strong middle class, where politics leaned toward progress and, perhaps most importantly, where people enjoyed a high quality of life for a lower cost of living.
“We say we have red state money, we don’t have blue state money,” Barnett, 52, told CNBC Make It.
They fared well in corporate America, with Barnett working in marketing and Andrews in software programming, earning them a joint household income of about $200,000. They owned their 3-bedroom, 2-bathroom home and had enough disposable income to go on vacations, though they weren’t quite “the constant jet-setting type,” Barnett says.
The two got serious about leaving the country in 2020 when they transitioned to remote work.
In 2022, they visited Mérida, the capital of Mexico’s Yucatán state, and fell in love.
Merida ticked all the boxes: a 30-minute drive from the coast, friendly people, progressive policies like legal abortion and same-sex marriage, and, at least according to online estimates, a cost of living that was at least 30% cheaper than Alabama, Barnett says.
The couple moved to Mérida in April 2024 and now run their own travel company, Expatsi. They pay themselves a combined salary of $3,000 per month, “which is close to the average salary in Mérida and covers our needs,” Barnett says.
Here’s how some of the costs stack up between Alabama and Mexico.
What’s cheaper?
Dining out and entertainment options are more affordable in Merida than in Birmingham, Barnett says.
“Unless it’s high-end, dining out is incredibly affordable,” he says. The two recently shared a nice dinner at an Indian restaurant for $45, including tip.
In the United States, although inflation has eased from recent highs, many Americans still report restaurant prices are higher than in recent years.
The cost of dining out reminds Barnett of “Birmingham, but before the pandemic.” Plus, there are “endless options for delicious and affordable street food.”
Another cheaper item: a trip to the movies. A movie ticket “with reclining leather seats and all that” costs about $4 or $5, Barnett says.
Grooming and other personal services are also much cheaper, he adds. A trip to her new local salon might cost $30 for a pair of eyelashes, $50 for a manicure and pedicure, and $100 for a haircut and color appointment.
A recent round of Botox cost her $150.
Health care in general is affordable in Mexico at about 60% lower than prices in the United States, according to OECD data.
“Let’s say you have a cold and go to the pharmacy,” Barnett says. “You could see a provider there for $2 and get a prescription on the spot.”
What’s more expensive in Mexico?
While eating out is fairly affordable, Barnett says her grocery shopping trips are a bit more expensive than in the U.S.
That often comes down to the exchange rate, she adds.
Her Costco runs are a good example: “Costco items are pegged to an exchange rate of 20 pesos per dollar” and are statically priced, Barnett says. When the U.S. dollar weakens relative to the Mexican peso, things cost more. On a recent trip, the supermarket’s famous $1.50 hot dog turned out to be closer to $2 because of the exchange fury.
Plus, “some items are also imported at a premium,” Barnett says.
Over time, he’s gotten better at sourcing from local stores, like a butcher shop and a fish delivery service.
“If there was a store like Aldi here at reliably low prices on things like cheeses and pantry staples, I think I’d be below my spending in the States,” Barnett says. “As it stands, I’m still working on it and probably spending 10% to 20% more.”
What costs about the same, but is better quality:
In Alabama, the couple’s mortgage on their home was about $1,200 a month, including insurance and taxes.
In Mérida, the couple rents a two-bedroom, two-and-a-half-bathroom ranch for $25,000 pesos, or less than $1,400, a month.
Despite the slightly higher cost, Barnett says their home, which is in a “high-end” neighborhood and is equipped with “top-of-the-line appliances,” is higher quality than what they had before.
Plus, their home’s solar panels help reduce their electric bills, especially during the summer when the air conditioning is constantly running.
“That can save us $300 a month,” Barnett says.
Conversions from Mexican pesos to USD were done using the OANDA conversion rate of 1 peso to 0.05 USD as of July 10, 2024. All amounts are rounded to the nearest dollar.
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Source: telemundo20
