What they claim is more affordable in Mexico, where an American couple resides and survives on $3,000 monthly.

Jen Barnett and Brett Andrews, when considering leaving the U.S., had specific criteria for their new residence.

The couple from Birmingham, Alabama, sought a location near the beach with a strong middle class, progressive politics, and a high quality of life at a lower cost.

According to Barnett, 52, when we say we have red state money, we actually mean we don't have blue state money.

Barnett and Andrews were successful in their respective careers in corporate America, earning a combined income of approximately $200,000. They owned a 3-bedroom, 2-bathroom home and had enough extra money to take vacations, although they didn't consider themselves "constant travelers," according to Barnett.

In 2020, when they shifted to remote work, the two became determined to emigrate.

In 2022, they discovered Merida, the capital city of Yucatan state in Mexico, and became enamored.

Barnett says that Merida met all the criteria: a 30-minute drive from the coast, welcoming residents, liberal views on issues such as legal abortion and same-sex marriage, and, based on online estimates, a lower cost of living compared to Alabama.

Barnett and his partner relocated to Merida in April 2024 and established their own travel business, Expatsi. The couple earns a combined monthly salary of $3,000, which is close to the average salary in Merida and meets their requirements.

Here's how some of the costs stack up between Alabama and Mexico.

What's cheaper

According to Barnett, dining out and entertainment options are more affordable in Merida compared to Birmingham.

"Dining out is affordable, even if it's not high-end," she remarks. The two recently split a nice dinner at an Indian restaurant for $45 including tip.

Despite a decrease in inflation in the U.S., many Americans are still reporting increased restaurant prices compared to previous years.

Barnett recalls the cost of dining out as reminiscent of "Birmingham before the pandemic," but now there are "endless choices for affordable, delectable street food."

An outing to the movies is another affordable option. A movie theater ticket with reclining leather seats typically costs between $4 and $5, according to Barnett.

A visit to her new local salon could cost $30 for eyelashes, $50 for a manicure and pedicure, and $100 for a haircut and color appointment, she notes. Additionally, grooming and other personal services are also much cheaper.

A recent round of Botox cost her $150.

According to OECD data, health care in Mexico is approximately 60% cheaper than in the U.S.

"If you have a cold and visit a pharmacy, you could see a provider for $2 and receive a prescription immediately, according to Barnett."

What's more expensive

Barnett claims that her grocery shopping trips in the UK are more expensive compared to the US, despite eating out being relatively affordable.

That often comes down to the exchange rate, she adds.

Her Costco runs demonstrate how the exchange rate of 20 pesos to the dollar affects the pricing of items, which is set at a static rate. When the U.S. dollar weakens in relation to the Mexican peso, the cost of goods increases. For instance, on a recent trip, the $1.50 hot dog at Costco cost nearly $2 due to the exchange rate fluctuations.

Barnett states that some items are imported at a premium.

Over time, she has improved her ability to source from local stores, such as a butcher shop and a fish delivery service.

"Barnett believes that if there was a store like Aldi in his area, he could save money on items like cheeses and pantry staples, allowing him to spend less than his U.S. budget. However, since there isn't such a store, he is still working on reducing his spending and is currently spending about 10% to 20% more."

What costs about the same, but is better quality:

The monthly mortgage payment for the couple's house in Alabama was approximately $1,200, which included insurance and taxes.

In Merida, the couple rents a 2-bedroom, 2½-bathroom hacienda for less than $1,400 per month, which is 25,000 pesos.

Although their housing is more expensive, Barnett claims it is of higher quality due to its location in a "high-end" neighborhood and the inclusion of "top-of-the-line appliances."

Their solar panels help lower their electricity bills, especially during the summer when the AC is constantly running.

Barnett says that it can save us $300 a month.

The OANDA conversion rate of 1 peso to 0.05 USD was used to convert Mexican pesos to USD on July 10, 2024. All amounts are rounded to the nearest dollar.

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