Kramer, is the cost really cheaper in Colombia than, say, in some rural town in the SE of the United States? I'm not asking to be antagonistic. I love Salsa and Colombian bubble butt as much as the next guy, but what is your average spending per month?
This is an excellent question. First of all, I am not traveling to find low costs paradises. I find I spend more overseas (all things considered including travel costs) than in the USA but live a lot better lifestyle and it is a lot more interesting and exotic. And Colombia is not a cheap country, relative to other developing countries. Also, I have not yet lived a regular lifestyle here cooking my own food, etc. I go out to eat with my girlfriend 7 days a week and eat out my other meals, until I find a proper apartment.
I find Colombia to be expensive in a lot of ways. McDonalds is more expensive here than in the USA (I check their prices in every country I visit). The Peso is STRONG right now supposedly because so much foreign investment money is flowing in so that makes our dollar weaker (I read where the Peso is the number 1 performing currency against the dollar out of 106 currencies over the last X years, not sure what X is).
But if you look at everything, it is somewhat cheaper living here than a cheap USA location. Eating out is a bit cheaper. You can get a big lunch for $3.50-$4, there is no tip and the taxes are included (although you don't have much choice of menu for the menu del dia or menu ejecutivo). After my workout this morning, instead of a lunch, I had scrambled eggs with tomato, onions, and other stuff added. An arepa (super thick flour tortilla) with a big hunk of cheese and butter, and a yummy Milo chocolate milk cold drink for under $3 (no tips at ordinary restaurants, just fancier places). I got to sit outside in beautiful slightly overcast 76 degree weather, and they didn't mind my sweaty t-shirt
I think the best (monetary) strategy is to go out for lunch and cook your other meals.
Medical, of course, is much cheaper (and private medical here actually seems to be of high quality although I am still investigating). Housing definitely costs less. A 2 bedroom, 1.5 bath apartment in a great neighborhood in Medellin (which is really quite a nice, first rate city of 3 million) with a balcony, with a full year lease would probably go for around $400/month, although there is a lot for less than that. Your overall utilities cost (water, electric, gas, internet, cable) might be about the same or a little more than the USA, but only because the weather is nicer here (no A/C or heat needed year around) and you use less energy, otherwise they would be more because internet/cable going to cost more in Colombia.
Any manufactured item costs more (even furniture and clothing), and non-local food products cost more (so your grocery bill will be higher). The retail distribution system is still immature and there is not enough competition. It costs more to transport a product from Cartagena to Bogota (400 miles) than it does to get that product from China to Cartagena. And there are high tax rates mainly due to the size of the military and police needed to combat narco-crime. I am hoping these costs will decrease, relatively, in the medium term. Colombia now ranks second (to Puerto Rico) in all of Latin America in ease of doing business, it has been skyrocketing up the list in the last few years.
Getting around is super cheap, no need for a car really except outside of the city although most upper middle class or higher families end up getting a car (there are high taxes on cars, maybe 5% of the value per year?) but no such tax on motorbikes. Taxi fare of $5 would get you half way across the city, most of my taxi rides are $2-$3, there are taxis everywhere and they are safe and the drivers are honest, believe it or not. There is a great metro system, also, for about 80 cents per ride and buses cost about 70 cents per ride (but bus rides can be rough here). All of the neighborhoods are mixed zoning, so little stores and restaurants all over, I just love that, always something you can walk to. The neighborhood where I spend most of my time is the nicest neighborhood that I have ever lived in in my entire life, it is just gorgeous and pedestrian friendly. First run movie tickets are about $4.25.
Here are some photos in this thread of the neighborhood although they are a bit dated at 4 years old:
Laureles - Medellín - SkyscraperCity
Algunas fotos de Laureles (Medellín) - SkyscraperCity
Kramer
