Being Poor in Costa Rica

Even though Costa Rica does not have all the “safety net” programs of the U.S. (though free medical care & education), plain ol’ regular daily life for Ticos (and most expats) is easier here for the poor than in the states. (And that is even with CR having the highest cost of living in Central America.) I’m first motivated to say this because of the latest article in the “Live in Costa Rica” blog:

It is better to be poor in Costa Rica than the United States

Also because I know that there are people from the States living here on no other income than their monthly Social Security check. A person can live solo here on a thousand dollars a month, though very simply. For residency (like Green Card in States) you must prove income of at least $1,000 a month. I think it would be much more difficult to live on that in the states! (And by the way, I meet that requirement by having my SS Check auto-deposited in my Costa Rica bank account. )

In fact there is a whole website & tour/conference program here entitled Retire in Costa Rica on Social Security.  George supposedly shows you how to do it. (Disclaimer: I have not participated in his tour/program but like his concepts and his Intro Video!) On his site he quickly refers you to another blog/website that I know from experience helps you with specific budgeting:  Retire for Less in Costa Rica.  I highly recommend their newsletter/blog as the best for someone retiring here on a tight budget. It just may be my favorite newsletter on retiring in Costa Rica!

Remember that a large number of Ticos live here on less than a thousand dollars a month (even families). They do not travel somewhere every month like me nor have some of the luxuries I have, nor eat out in restaurants, but they are very happy and live productive lives in one of the happiest countries in the world. And like me, most have no car!   🙂   That is one of my biggest savings and helps me to afford my monthly travels, thanks in part to affordable public transportation!

I do not talk budget/expenses much – not the focus of my blog – but it is the purpose of the two blogs linked above. If you are concerned about affording retirement in Costa Rica, you must subscribe to the Retire for Less in Costa Rica blog/newsletter and check out the social security one.

Then come experience the tranquil life of adventure and happiness in the land of Pura Vida  –  Rich or Poor!     🙂

The Feature Photo is a current shot of the fading graffiti on the wall behind our public college-prep high school, Colegio Liceo Atenas. It may not have been intended to represent poverty, but it seems to fit for me.  🙂   The phrase written to the left of the face, No dejemos que los niños pierdan su sonrisa.   is roughly translated:   “Let’s not let the kids lose their smile.”   And the schools along with the Catholic Church work hard to help those in poverty, especially children. I find happy children in the poorest neighborhoods I walk through. As my grandmother used to say, “In life you do the best you can with what ya’ got.”    🙂    And that is . . .  

¡Pura Vida!

Cost of Living in Costa Rica

Here is what one couple actually spent in July 2014 (they publish it):

Note that Retire for Less was their goal and is the name of their newsletter

From “Hanging Bridges” Costa Rica by Charlie
Click to enlarge
Chris Howard (my tour leader) has long lists of the cost of everything in his book and budgets at these two levels he says people are actually living on. Bottom line is that everything is not cheap, but you can live on your income or what you budget to live on if you don’t live too luxuriously:

Here is an example of a budget for a single person who has no more than $1500:
Rent  …………………………………………………………………………………$200 to $300
Electricity and water  ………………………………………………………….$20
Cable TV  ………………………………………………………………………….$25 Monthly Public Transportation ………………………………………………………….$50
Monthly public health insurance (medicines included)  ……………$50
Food  ………………………………………………………………………………..$200 Entertainment  ……………………………………………………………………$100 -$150
Misc.  ……………………………………………………………………………….$200

How to live like a king or queen on $3000 or $4000
When you read the title of this article you will  probably think that it is impossible to live so cheaply and so well. This  is especially true if you reside in an expensive area of the U.S. like  California. You could probably scrape by on a few thousand dollars a month up north but you certainly wouldn’t be living in luxury. Let’s see why the title of this article is true. A couple who owns a $150,000 home (three  bedrooms and three baths) free  and clear and has a car will probably  have the following monthly expenses in Costa Rica.
 Private medical  insurance ……………………………………………….$200
Dental care  ……………………………………………………….$50 per month
A part time maid  …………………………………………………$100 to  $150
Part time gardener  …………………………………………………………….$30
Beauty parlor  …………………………………………………………………….$75
Food including inexpensive fruits and vegetables from a Farmer’s market and many  imported  American products  …………………………………….$500 per month
Entertainment (movies,  socializing)  ……………………….$200- $300
Dining out a couple of times a week   ……………………………….$300
Private gym  ……………………………………………$50 – $100 per couple
Country Club (after initial fees) …………………………………$100 to $200 per month
Car insurance for a relatively new car   …………………………….$100
Utilities (water and electricity)  ………………………………………..$100
Telephone (using Vonage or  Skype for long distance) ……. $75-$100
High speed Internet  …………………………………………………………..$50
Cable or  satellite TV  …………………………………………………………$50
Car repairs  …………………………………………………………………………$50
Garbage  ……………………………………………………………….$40 per year
Property taxes  on your $150,000 home  …………………….$20 per month
Misc. expenses  …………………………………………………………………$300
Travel to U.S. or other countries  ……………………$3000-$5000 or more per  year

Really your lifestyle determines what you will spend here. You can  choose to spend a lot more money if you are a high roller or yuppie type   or substantially less if you wish to live modestly. I know single people  who live for less than $1000 per month and others who have expensive tastes  who spend what they would in the States. Nevertheless, you can live very well  on the budget above. I should know because I have lived here almost 30 years  and buy and do everything I want for under $4,000 monthly.