Some expatriates who have moved to Costa Rica will say, “It’s almost as expensive to live here as it is to live in the United States!”

I have no idea where in the United States they are using for this comparison, and I have no idea what their lifestyle must demand, but I do know that any such statement is utter bullshit unless they are comparing Costa Rica to some rare, remote and extremely undesirable place!

I moved from California to Costa Rica almost eight years ago, Although I had visited Costa Rica many times over the years, I really had no clue as to how much it would cost me to live here in retirement. I have some savings and a small fixed income, primarily from Social Security.

Would I be able to live a lifestyle in Costa Rica up to my standards?

Every forum on the internet that discusses the issue of retiring to or living in Costa Rica is chocked full of threads discussing the cost of living here. “How much would it cost for a couple to live there?” Many folks chip in with their estimates and advice, and most of it is utterly useless.

• When one is living in the States, how can you know how those offering advice are living, what their lifestyles demand?
• Do they own a car?
• Do they buy Hellmann’s mayonnaise and Heinz catsup rather than local brands?
• Do they buy lots of clothes?
• Do they enjoy shopping?
• Do they know how to “work the system”?

(Costa Rica is not Florida del Sur or Hawaii South. It is another culture entirely! Much of what living here entails will appear on the surface to be similar to “back home”. But assume this at your peril! Some gringos whine about being charged “gringo prices…” I reject the premise that there is such a thing a “gringo prices”. There are prices that are charged to people who understand “how things are done” in Costa Rica, and the cultural signals that let Ticos know you understand – and these signals are easily learned if you have a clue that they even exist. And there are also prices charged to people who do not understand “the Tico way” and go about their daily business just as they did in the States, and whose behavior consequently often offends or confuses their Tico neighbors. In my opinion, these unaculturated gringos are the ones who whine about “gringo prices”.)

In my case, I decided the only way I would be able to find out how much it was going to cost me to live in Costa Rica was to come and live here. And that’s what I did almost eight years ago.

Before my move, I began trying to figure just how much it actually costs me to live. I was never much into household budgeting, and I really hadn’t any idea how much money I spent in any given month, much less where it went. As long as the checks didn’t bounce, I wasn’t concerned, and since they didn’t, I wasn’t. Particularly as a single male, I believe, it really wasn’t too necessary to budget, although I now realize how helpful it would have been had I done so.

I didn’t know how much it cost me to live in the States, and now I wanted to find out how much it was going to cost me to live in a foreign country? Yikes!

I started carrying a small pocket notebook and pen with me everywhere I went. In that notebook I wrote down every single penny I spent. Every one! If I bought a newspaper, it was written in the book. If I bought a stick of gum, in the book it went. At the end of every day, I would total it up, and with time, I began to divide my expenses into categories.

The experience was amazing, fascinating – I was astounded at where my money went! I still am, and that little notebook and pen still travel with me every time I leave my apartment. I still write down every penny I spend. It’s turned into a hobby – and it has resulted in saving an unbelievable amount of money.

Folks, I receive $1,100 per month in Social Security. It is a very rare month when I come anywhere close to spending that amount in a month of living in Costa Rica. With money I saved from my Social Security alone, I went to Brazil in 2009 for a full month!

When I went to Europe for a month this year, it was the first time since I arrived in Costa Rica that I had gone to the well of my savings accounts to pay for anything!

I live a middle-class lifestyle. I travel around Costa Rica a lot. I go out to eat a lot, often to swell restaurants. My apartment is much nicer than most apartments in which I have lived during my lifetime. I go to the theater, I go to football games, I spend plenty of money on hobbies and entertainment. And I do it all on Social Security.

In the United States it would be absurd to try to live as fine a lifestyle as I do here on the amount of money I spend.

So, could you do it? Yes, you could. What’s stopping you?

Auto addiction maybe? I do not own an automobile. Most people have no clue how much of their financial resources go to support their vehicle addiction – and they really don’t want to know! I travel, I go where I want to go when I want to go, and I do have transportation costs. But believe me, they are a teeny tiny fraction of what ANY automobile owner in the entire world pays to feed their addiction.

Automobile ownership, I believe, really is key to how inexpensively a person can live in Costa Rica. Presumably, if one suffers from an addiction to shopping, that would be problematic as well.

Recently, I looked at all my financial files covering the last five years. I averaged out my costs in various categories, and I wrote notes that explain what those categories are…

In his analysis Lair shows how he has lived on an average of US$1,154.77 per month during the five year period 2007-2011.

This includes his rent, groceries, eating out, travel, computer, internet, telephone and cellphone, party, books & CDs, events, medicines, health care miscellaneous. Registered VIP Members can download Lair’s Costa Rica Cost of Living 5 Year Analysis in our Download Library here which is in .pdf format.

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Written by Lair Davis who has written many articles about retiring in Costa Rica. As a consequence, he receives far more email than he cares to answer. He is now a paid consultant, who works with a very limited number of clients. He’s retired, doncha’ know, and doesn’t want to work! You are welcome to contact him – lairdavis@gmail.com – if you would like to see if he is taking on additional clients. In your inquiry, please let Lair know a little bit about what your retirement plans are at this point.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.