Inflation has taken a financial toll on American households. But luckily there are ways to escape the high cost of living if you’re fed up. Moving abroad to one of these affordable cities outside the U.S. could help you achieve your dream lifestyle. Your savings and income will stretch further in all of these low-cost destinations, enabling you to enjoy a better work-life balance or enter retirement.
1. Puerto Vallarta, Mexico
Moving to Puerto Vallarta, Mexico could help you escape the high cost of living stateside. Many expats have flocked to Puerto Vallarta due to its sunny weather, beautiful beaches, delicious food, and affordable prices. According to U.S. News & World Report, it may be possible to retire on as little as $1,000 per month in this coastal city. And since Puerto Vallarta is only a short plane ride away, you’ll still be able to visit family in the U.S. frequently.
2. Bangkok, Thailand
Bangkok, Thailand is one of the most popular tourist destinations in Southeast Asia, and it’s easy to see why. The city’s historic temples, bustling markets, and exciting nightlife draw visits in large numbers. Expats also flock to Bangkok because it’s one of the most affordable cities outside the U.S. According to Numbeo, the cost of living in the U.S. is 118% higher than in Bangkok, so you’ll save a bundle by moving there.
3. Porto, Portugal
Porto is a coastal city in Portugal with low rent costs, allowing expats to escape the high cost of living. According to Digital Nomad World, renting a house there usually costs just €500 (about $540) per month. However, if you’re interested in buying property, consider taking advantage of the golden visa program. If you purchase real estate in Portugal for at least €280,000, you can become a legal resident and pursue citizenship after five years.
In addition to affordable housing, you also enjoy low food costs. A meal out usually runs just €7, enabling you to enjoy Portuguese specialties like caldo verde on a budget.
4. Cuenca, Ecuador
Cuenca is a southern colonial city in Ecuador with rents as low as $400 per month according to International Living. Moving further out from the city can save you even more on rent. Food is also affordable in Ecuador, especially at local farmer’s markets. Just $15 can get you more produce than you can carry. If you prefer dining out, you can grab lunch for about $7. The low cost of everyday essentials makes Cuenca one of the most affordable cities outside the U.S.
5. Manila, Philippines
Manila is an affordable city outside the U.S. that’s become a hub for expats. Most Filipinos speak English and are very welcoming, making it easier for Americans to integrate into the community. Additionally, there are many other expats who you can befriend, which can help stave off homesickness. According to Wise, a single person can get by in Manila for about $520 per month, allowing you to escape the high cost of living here in the U.S.
6. Limon, Costa Rica
Limon is an affordable coastal city in Costa Rica with a population of nearly 100,000. It’s the perfect locale for people who want to enjoy quiet time in nature without being far from amenities like shopping and medical care. As long as you don’t live extravagantly, it’s possible to make it in Costa Rica with an income of just $1,000 per month. That’s why Costa Rica has become a popular place for American retirees living on Social Security to escape the high cost of living in the U.S.
7. Panama City, Panama
Panama City, Panama is a large city with over 1,000,000 residents. It offers the perfect blend of modern and historical elements, with tall skyscrapers and a cobblestoned historic center. Many people in Panama speak English and the dollar is even accepted as legal tender. This may help American expats hoping to escape the high cost of living feel at home. According to Yahoo Finance, you can enjoy a decent standard of living in Panama for about $1,100 per month, making it one of the most affordable cities outside the U.S.
8. Sofia, Bulgaria
Sofia, the capital of Bulgaria, was rated the best place to retire in Europe. Thanks to the city’s low cost of living, women and men can retire at an average age of 64 and 62 respectively. Retirees can live comfortably with a savings balance of just $163,035, making it possible to leave the workforce earlier. If you’re hoping to work less and enjoy life more, moving to Bulgaria to escape the high cost of living could be a good choice.
9. Budapest, Hungary
Budapest, Hungary is ranked as the second best place to retire in Europe due to its stunning architecture and variety of recreational activities. The city boasts nearly 700 cafes, over 30 fitness centers, and multiple golf clubs where expats and retirees can connect and relax.
Thanks to the city’s low cost of living, you won’t have to work as much, giving you time to enjoy the abundant history and amenities. Expatistan reports that Budapest is cheaper than 76% of cities in the world. A single person can enjoy a comfortable lifestyle in this world-class city for just $1,600 per month.
10. Palermo, Sicily
If you’ve been dreaming of moving to Italy since reading Eat, Pray, Love, consider Palermo. It’s a picturesque, walkable city located in Sicily. Approximately 30% of Italy’s expat community resides in Sicily, making this a great place for Americans to settle down. In affordable neighborhoods like Il Capo and Piazza Marina, you can rent a 2-bedroom apartment for around €800, which is roughly $860. Since you won’t feel financially squeezed by housing costs, you’ll have more time to lounge in the Mediterranean sun with a slice of pizza.
Your Dream Life Awaits
You don’t have to settle for the drudgery of the American rat race. If you’re longing to escape the high cost of living, it’s possible to move abroad and pursue residency in a new country. These 10 affordable cities outside the U.S. are excellent places to retire or take a break from hustle culture. Your dream life could be just a plane ride away!