Tips for Living and Traveling Abroad

Living abroad can cost 50-70% less than North America when you implement these proven strategies: avoid tourist areas (saving 2-3x on identical items), use travel credit cards with 1.5-2% cash back and zero-fee debit cards (saving $5-10 per ATM withdrawal), negotiate monthly rentals at one-third the price of nightly rates, and use luxury buses instead of flights (saving $60-120 per trip). After a decade across Latin America, these fundamental choices have allowed comfortable living on $1,200/month while others burn through $3,000/month in the same cities. For those considering living in Mexico City or other Latin American destinations, these strategies make long-term travel sustainable.

After more than a decade living and traveling across Latin America, I've learned that the difference between burning through your savings and living comfortably often comes down to just a few strategic choices. These aren't theoretical tips from a guidebook, they're the practical strategies that have saved me thousands of dollars while maintaining the lifestyle I want.

Avoid Tourist Areas Like the Plague

This is rule number one, and it cannot be overstated. Tourist areas charge tourist prices, sometimes 2-3x what locals pay for the exact same thing. Whether it's accommodation, food, or entertainment, you're paying a premium just for being in the "safe" zone that caters to foreigners.

Instead, venture into neighborhoods where locals actually live. Not only will your costs drop dramatically, but you'll have a far more authentic experience. Learn enough Spanish to get by, ask locals for recommendations, and don't be afraid to eat at the places with handwritten menus and plastic chairs. Explore authentic experiences in places like Playa del Carmen beyond the tourist zones.

Financial Tools Matter More Than You Think

Your choice of credit and debit cards can make or break your budget when living abroad.

Travel Credit Cards with Cash Back

Get a travel credit card that offers cash back on purchases. When you're spending money anyway, you might as well get 1.5-2% back. Over a year of living expenses, this adds up to hundreds or even thousands of dollars. Look for cards with no foreign transaction fees, those 3% charges add up fast.

Zero-Fee Debit Cards

Most traditional banks will hit you with ATM fees, foreign transaction fees, and unfavorable exchange rates. Instead, use debit cards specifically designed for travelers like Charles Schwab (reimburses all ATM fees worldwide) or other fintech options. This alone can save you $5-10 per withdrawal, which compounds quickly when you're withdrawing cash regularly.

Accommodation: The Monthly Rental Advantage

Hotels and nightly Airbnbs will drain your bank account faster than anything else. Here's the secret: monthly rentals cost about one-third the price of equivalent hotels or short-term stays.

When I first arrived in Mexico City, I was paying $60/night for a decent Airbnb, that's $1,800/month. Once I committed to staying longer and found a monthly rental, I was paying $600/month for a better apartment in a better neighborhood. Same city, same quality, one-third the price.

Extended Stays = Better Negotiating

Landlords and property managers love reliable, long-term tenants. If you're planning to stay somewhere for at least a month, you have serious negotiating power. I've consistently gotten discounts by committing to 2-3 months upfront. The longer you stay, the better rate you can negotiate.

Transportation: Buses and Trains in Latin America

Forget flying everywhere. Latin American bus systems are incredibly well-developed, comfortable, and cheap. A bus from Mexico City to Oaxaca (6 hours) costs around $30-40, while a flight might be $100-150. The luxury buses have reclining seats, WiFi, and sometimes even meals included.

For longer distances, overnight buses save you a night of accommodation while getting you where you need to go. I've taken 12-hour overnight buses with fully reclining seats that were more comfortable than some hotel beds I've paid for. Consider bus travel when exploring destinations like Cancun and the Riviera Maya.

The Art of Haggling

In many Latin American markets and informal transactions, prices are negotiable. Here's the framework I use:

• Start with one-third of the asking price - This establishes that you're serious about negotiating but not insulting
• Settle around half - In most cases, you'll end up paying 40-60% of the initial asking price
• Be willing to walk away - This is your most powerful tool. If they won't budge, start walking. You'd be surprised how often they call you back with a better offer
• Buy in bulk when possible - Purchasing multiple items or services gives you more leverage

This works for everything from souvenirs to apartment rentals to tour packages. Not everything is negotiable, but more things are than you'd expect.

Local Services vs. Cooking: Know the Math

Here's a counterintuitive one: in many Latin American cities, using delivery services like Rappi can actually be cheaper than cooking, especially for short-term stays.

Short-Term Stays (1-2 weeks)

When you're only somewhere briefly, buying groceries, cooking supplies, and condiments doesn't make financial sense. You'll end up throwing away half of what you buy. Instead, use local delivery apps like Rappi, which offer meals from local restaurants for $3-7. It's cheaper than stocking a kitchen, saves time, and you get variety.

Long-Term Stays (1+ months)

Once you're settled somewhere for a month or more, the economics flip. Now meal prepping makes sense because you'll use up what you buy. Shop at local markets instead of supermarkets, buy in bulk, and cook large batches. Your cost per meal can drop to $1-2.

Communication: SIM Cards and Google Voice

International roaming charges are a scam. As soon as you land in a new country, buy a local SIM card. In Mexico, you can get a SIM card with data for around 200 pesos (~$10 USD) that lasts a month. This gives you local rates for calls and data without the $10/day international roaming fees.

For keeping your U.S. number active, set up Google Voice before you leave. It's free, works over WiFi or data, and lets you maintain your American number for banking, two-factor authentication, and staying in touch with people back home.

The Compound Effect

None of these strategies alone will transform your finances, but together they create a compound effect. When you're saving 50% on accommodation, 70% on transportation, 30% on food, and avoiding all those little fees that nickel-and-dime you, suddenly your budget stretches twice as far.

I've watched friends burn through $3,000/month living in Latin America while I maintain a comfortable lifestyle for $1,200/month in the same city. The difference isn't that I'm living like a monk, it's that I've optimized these fundamental categories.

Final Thoughts

Living and traveling abroad doesn't have to be expensive. The key is thinking like a local, making smart financial tool choices, and being strategic about the big-ticket items like accommodation and transportation. These strategies have allowed me to live comfortably across Latin America for over a decade without breaking the bank.

The freedom that comes from making your money stretch further is invaluable, it means you can stay longer, explore more, and actually build a life somewhere rather than just passing through as a perpetual tourist. Join our community to connect with other expats sharing cost-saving strategies worldwide.