Before we started traveling full time, I had a subscription to International Living.
I was captivated by the stories of people who left behind the stress of American life and moved abroad to live more simply, affordably, and intentionally.
They painted such a cozy picture: slow mornings in seaside towns, fresh food from the market, charming homes for a fraction of U.S. prices. And while some of that has absolutely been true in our experience, there’s a lot they don’t tell you—especially about what it actually costs to live this way.
Whether you plan to live as an expat, travel full time, or just take an extended working vacation, this is what you need to know about budgeting for living abroad.
🌍 What “Lower Cost of Living” Means
Yes, housing may be cheaper. But other costs creep in fast.
Take Guatemala, for example. We pay $0.55 per kilowatt hour for electricity here, and it's quite unstable. Back in Texas, the average cost ranges from $0.11 to $0.16. That’s an enormous difference when you’re running the A/C all the time!
It’s not just the utilities, either. If it's imported, it's expensive. And depending on the country, almost everything may be imported.
Here’s a simple example:
While in Belize, I ran out of contact solution. I simply never thought this would be a hard-to-find item. I found a 2-ounce travel-sized bottle at the pharmacy for $8 US, the same price I would normally pay for the 12-ounce size.
So while some expenses are lower, you often end up trading one kind of spending for another.
✈️ Visa Runs & Border Crossings
Another hidden cost? You can’t just stay in one country indefinitely on a tourist visa, so there are visa runs to make or residency costs to consider.
We are in Guatemala right now, and we can only stay 90 days total across Guatemala, Honduras, El Salvador, and Nicaragua. Because they are part of the CA-4 region, hopping from one to the other doesn’t reset your time.
We considered doing a visa run to Belize, but for us (traveling by sailboat), that’s expensive because of the boat import fees. Overland, it's a long bus ride. Plus, you need to stay in the country for a while before returning. And here’s the catch, immigration could choose to only give us 30 days when we return, not the 90 days we want.
And what about staying in Belize long-term? We've done that, too. After your first month, you need to renew your visa every 30 days at an immigration office (for us it was in another city), for $100 per person, per renewal.
Often, the best option is to fly out of the region, which brings its own set of costs: flights, rental cars, hotels, and restaurants—even if you're just visiting family in the States.
💻 Portable Income Isn’t Optional
This is the part I stress to everyone:
If you're going to live abroad, you need a way to earn money that travels with you.
Don’t wait to figure it out after you land in another country. You want something in place—whether it’s an online business, steady freelance work, affiliate income, or consulting—before you ever pack your bags.
The magic of living abroad comes from currency arbitrage: earning in a strong currency (like the U.S. dollar) and spending in a local economy where your money goes further. That’s the sweet spot.
But if you don’t have that? You’re stuck. On a tourist visa, you can’t legally work. And if your funds run low, your options get real narrow, real fast.
💃 You’ll Still Be You
Here’s one more truth that doesn’t get talked about much...
How you live at home is how you’ll live abroad.
If you enjoy eating out, you’ll keep doing that. If you normally buy high-end groceries, you will do the same no matter where you live.
If you enjoy a comfortable home, great Wi-Fi, and a certain kind of lifestyle, you’ll seek that out wherever you land.
And guess what? Some comforts cost more when you’re outside the U.S.
So the idea that you’ll “move to Costa Rica and live for $800/month” only works if you want to live that way.
Most people don’t change their spending habits just because they move.
📍 Final Thoughts
Full-time travel has been one of the most meaningful experiences of my life. I wouldn’t trade it.
But I also wouldn’t tell anyone it’s a shortcut to a cheaper, easier life.
Don't think of it as running away from something. Think of it as moving toward a lifestyle you designed with intention. It's about finding a rhythm in life that works for you...one that makes you feel at ease and brings you peace.
And when you build it well, it’s a beautiful way to live.