Forex Articles

It is possible to live a comfortable life in Costa Rica on approximately $1,000 a month, although you would probably be a bit more comfortable by spending $1,200 to $1,500 a month.

Overall, purchasing power is significantly higher in Costa Rica than in the United States. The cost of living in San Jose ranks close to the lowest on a survey of 144 cities in the world. Firms that compare the cost of goods and services between various cities, such as Corporate Re Consulting, consistently rank Costa Rica as having one of the lowest costs of living worldwide.

On top of its affordability, Costa Rica has one of the highest standards of living in Central and South America. There are plenty of Central and South American cities where you could get by on $1,000 a month, but even twice that much couldn't buy a comfortable lifestyle; the necessary goods, services and infrastructure aren't available. Costa Rica, however, is one of the more developed countries, offering well-developed infrastructure and readily available services such as Internet, cellphone service and satellite television.

The average Costa Rican earns no more than $400 a month, and most of the upper 20% of Costa Rican families don't bring in more than $600 per month. You should certainly be able to manage to live in reasonable comfort in Costa Rica on $1,000 a month.

Your largest cost of living expense in Costa Rica is usually housing. The cost of housing in Costa Rica is one of the major points that makes living there so affordable. You can rent a nice two-bedroom apartment in or near San Jose for as little $400 a month. You can even find luxury apartments as inexpensive as $700 a month. It costs about $100 to $200 a month more to rent a house that's comparable to a similar apartment. If you want to live a bit more comfortably, and you have more than $1,000 a month to spend, you can rent a very nice three- to four-bedroom, two- or three-bathroom house for $1,100 to $1,500 a month.

Many apartments in Costa Rica do not have hot water or air conditioning. Expect to pay more for either one. Apartments with hot water might run $25 to $50 a month higher than comparable apartments without hot water.

One of the least expensive services in Costa Rica is household help. You can hire a maid or a gardener for just a couple of dollars an hour, or as little as $200 a month for full-time help.

Food costs are one of the major areas where you can save money, but it's also one of the major areas where you can easily run way over budget. When you're buying groceries in Costa Rica, you have to make some adjustments from your buying habits in the U.S.

Costa Rica has plenty of upscale restaurants where an entrée runs more than $20, so dining out definitely increases your monthly expenses. However, there are also a number of small eateries, known as "sodas," where you can secure a complete meal for less than $6. There are not many fast food restaurants in Costa Rica.

A lot of your grocery shopping budget depends on where you shop. Unlike in U.S., supermarkets are not the recommended venue for purchasing the bulk of your groceries. Prices for meat and poultry, along with fruits and vegetables, are generally much less expensive at street vendors than at supermarkets. Weekly street fairs are an additional opportunity for bargains on groceries; you can obtain high-quality produce at bargain prices, such as a gigantic bunch of bananas for less than 50 cents.

There are supermarkets that cater to Americans living in Costa Rica, but the food generally costs 20 to 30% more than at smaller, native Costa Rican stores. A lot of the local versions of staple products such as ketchup may be perfectly acceptable, but in some instances, just depending on personal tastes, you may choose to pay the markup to obtain familiar U.S. brands.

Poultry prices tend to run about the same as, or a bit less than, in the U.S. Bread and eggs are usually less expensive. Fish is generally less expensive than in the U.S., but there is less variety available.

Meat tends to be expensive and not of the best quality. Be prepared to put up with less tasty steaks and hamburgers than you're used to having, or to pay a hefty premium to obtain good-quality meat.

All in all, if you shop prudently, it's fairly easy to get by on about $50 a week for food.

If you must have your own car, it will be a major expense unless you purchase a used car from a local. Import expenses can almost double the price of a new car secured from the U.S. If you have a car, insurance is typically less than one-third what you would pay in the U.S., and gasoline is less expensive in Costa Rica than in just about any non-oil-producing country in Central or South America.

However, public or hired transportation is more than adequate and very inexpensive. Public transportation by bus is very inexpensive and adequate to get to almost anywhere in the country. You can hire a taxi for less than $1 a mile, and it's possible to get even better rates by hiring a car and driver for the day.

The costs of utilities and other services provide major saving over the cost of living in the U.S. The cost of electricity is only about 10 cents per kilowatt-hour. Electric bills rarely run over $100 a month and are often as low as $25 to $50 a month. Water bills range from $8 to $15 monthly. A full-range satellite TV subscription is commonly around $60 per month. You can get cellphone and broadband Internet service for well below $50 a month each.

Health services are not considered the best in Costa Rica, but medical costs are another area that offers savings. Health insurance for permanent residents typically costs less than $1,000 annually.