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“We spend around $1,800 a month, which is extravagant by local standards.We live in a big air-conditioned house with a swimming pool. Medical care is so inexpensive here we don’t even have insurance. I had to go to the best hospital in Managua for surgery and it was cheap enough that I put it on a credit card.” Gord and Elisha Mac Kay have lived in three cities in the country and have paid $300 to $500 in rent.

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That’s because the peso is 14.7 to the dollar as I write this, way off its historic norm.You need that money from elsewhere to get the full effect of this though, so it’s best to use a service like Xoom unless you will be bringing in a briefcase full of cash on a regular basis.that’s because while the official exchange rate may be 8.6 or so, the “blue rate” you get on the street is currently around 13.Naturally if you want to move to Playa del Carmen or Puerto Vallarta, you’re’ going to spend much more per month because of higher utility bills and the prevalence of foreign tourists driving up prices.

If it’s a place filled with gringos (including Ajijic and San Miguel de Allende in the interior), you won’t see the same savings as you would where there are fewer of them.

You can still live a half price life in these places though—many easily do that—and you can always bring down costs by learning to communicate in Spanish and shopping/eating where the locals do.