Why the Cost of Living Gap Keeps Getting Wider
If you’ve been paying attention to your bills lately, you already know that living in the United States is getting more expensive every year. Housing, healthcare, groceries, insurance, gas, childcare, everything just keeps climbing. And if you’re running an online business or working remotely, you’ve probably wondered whether your money could go a lot further somewhere else.
The short answer is yes, it absolutely can. I’ve been living abroad as a digital nomad for over 10 years, running my ecommerce businesses from places like Thailand, Bali, and various countries across Latin America and Europe. The difference in what your dollar buys is staggering once you actually experience it firsthand.
This guide puts real numbers side by side so you can see exactly how the cost of living in the US compares to popular expat destinations in 2026. We’re covering housing, food, healthcare, transportation, and the total monthly budget for each region. Whether you’re considering a permanent move or just want to understand what’s possible, these numbers tell the story. If you want the full breakdown on building a location-independent income, check out E-Commerce Paradise where I teach high-ticket dropshipping as a business model you can run from anywhere.
The Big Picture: US Cost of Living in 2026
Before we compare anything, let’s establish what living in the US actually costs right now. According to the Numbeo Cost of Living Index for 2026, the United States has a cost of living index score of 68.8, ranking it 19th globally. That puts it nearly equal to Germany and slightly above the United Kingdom.
But averages don’t tell the full story. Where you live in the US makes a massive difference. Here’s what a typical monthly budget looks like for a single person in different US scenarios.
Major Coastal City (New York, San Francisco, Los Angeles)
A one-bedroom apartment runs $2,500 to $3,500 per month. Add in food ($600 to $800), health insurance ($400 to $700 for a decent plan), transportation ($150 to $300), utilities and internet ($200 to $300), and you’re looking at $4,000 to $5,500 per month minimum. For a couple, add another $1,000 to $1,500.
Mid-Size City (Austin, Denver, Nashville)
Housing drops to $1,400 to $2,200, but everything else stays roughly the same. Total monthly budget for a single person: $3,000 to $4,000. These cities used to be considered affordable, but they’ve caught up fast over the past few years.
Small Town or Rural Area
This is where the US is still somewhat affordable. Housing can be $800 to $1,200, and the total monthly budget drops to $2,000 to $2,800. But you’re also giving up a lot in terms of amenities, dining options, cultural activities, and job opportunities (though that last one doesn’t matter if you’re working online).
The common thread across all these scenarios is healthcare. According to the Centers for Medicare and Medicaid Services, Americans spend an average of over $14,000 per person annually on healthcare. That’s a number you simply don’t see in most other developed countries.
Southeast Asia: 50% to 75% Cheaper Than the US
Southeast Asia is where the cost of living difference is the most dramatic. The same lifestyle that costs $4,000 per month in a US city can cost $1,000 to $2,000 in countries like Thailand, Vietnam, or Cambodia.
Thailand
A nice one-bedroom apartment in Chiang Mai runs $300 to $500 per month. In Bangkok, expect $500 to $800 for something comparable. A sit-down meal at a local restaurant costs $2 to $5. Street food is even cheaper at $1 to $2. Groceries for a month run about $150 to $250 if you’re cooking at home.
Healthcare is one of Thailand’s biggest advantages. A doctor visit costs $15 to $30. A full health checkup at a private hospital like Bumrungrad in Bangkok runs about $200 to $400, compared to $1,000 or more in the US. Dental work is 60% to 80% cheaper. Many Americans actually fly to Thailand specifically for medical procedures because the savings are that significant even after airfare.
Total monthly budget for a comfortable lifestyle in Thailand: $1,200 to $2,000 for a single person, $1,500 to $2,500 for a couple.
Vietnam
Vietnam is even cheaper than Thailand in most categories. A modern apartment in Da Nang or Hoi An runs $300 to $500 per month. Eating out costs $1 to $3 for most meals. A beer at a restaurant is $0.50 to $1.00. Monthly groceries run $100 to $200.
Total monthly budget: $800 to $1,500 for a single person, $1,000 to $1,800 for a couple.
The Real Lifestyle Difference
Here’s what the numbers don’t capture: in Southeast Asia, you’re not just saving money, you’re often living better. A $500 per month apartment in Chiang Mai might include a pool, a gym, and a rooftop terrace. You can eat out three times a day, get weekly massages, and still spend less than you would on rent alone in most US cities.
If you’re running an online business from Southeast Asia, your operating costs drop too. Tools like Shopify for your storefront and Omnisend for email marketing cost the same globally, but your personal burn rate is a fraction of what it would be in the US. That means more runway, less financial pressure, and the ability to reinvest profits into growth instead of just covering your living expenses.
Latin America: 40% to 60% Cheaper Than the US
Latin America hits a sweet spot for a lot of Americans because it combines significant cost savings with proximity to the US, similar time zones, and (in some countries) easy visa processes.
Mexico
Mexico is the most popular destination for American expats, and the numbers explain why. A nice apartment in popular expat areas like Playa del Carmen, San Miguel de Allende, or Merida runs $500 to $900 per month. Food is roughly 60% cheaper than the US, with a restaurant meal costing $4 to $8. Groceries for a month run $200 to $300.
Healthcare through Mexico’s IMSS public system costs about $500 per year for full coverage. Private healthcare is excellent and costs about 25% to 30% of US prices. A doctor visit runs $25 to $50, and dental cleanings cost $30 to $50.
Total monthly budget: $1,200 to $2,000 for a single person, $1,500 to $2,500 for a couple.
Colombia
Medellin has become one of the hottest expat destinations in the world, and the cost of living is a major reason. A modern apartment in a nice neighborhood like Laureles or Envigado runs $400 to $700 per month. Eating out at local restaurants costs $3 to $6 per meal. A month of groceries runs $150 to $250.
Private health insurance in Colombia costs $100 to $200 per month for comprehensive coverage, which is a fraction of US premiums. The quality is excellent, with Colombia’s healthcare system consistently ranking well by the World Health Organization.
Total monthly budget: $1,000 to $1,800 for a single person, $1,500 to $2,200 for a couple.
Ecuador
Ecuador’s biggest advantage is that it uses the US dollar, which eliminates currency conversion costs entirely. A couple can live comfortably in Cuenca for $1,200 to $1,800 per month. That includes a nice apartment ($400 to $600), food ($300 to $400), healthcare through the IESS public system ($80 per month per person), transportation, and entertainment.
For managing your finances across borders, having the right banking setup is critical. Wise is what I use for international transfers because the exchange rates are transparent and the fees are a fraction of what traditional banks charge. In countries that use the dollar like Ecuador, you still benefit from Wise for receiving payments from international customers if you’re running an ecommerce business.
Europe: 10% to 40% Cheaper Than the US (Depending on Where)
Europe is a mixed bag when it comes to cost of living. Northern and Western Europe (London, Paris, Zurich, Oslo) can be as expensive as or more expensive than the US. But Southern and Eastern Europe offer genuinely affordable living with an incredibly high quality of life.
Portugal
Portugal has become the top European destination for American expats, and the value is excellent. An apartment in Lisbon runs $800 to $1,200 per month, while smaller cities like Braga, Aveiro, or Faro are $400 to $700. Groceries are about 30% cheaper than the US, and eating out at local restaurants costs $8 to $15 per person.
Public healthcare (SNS) is available to all legal residents at minimal cost. Private health insurance runs about $100 to $150 per month for comprehensive coverage. The D7 Visa requires just $820 per month in passive income, making it accessible to most retirees and remote workers.
Total monthly budget: $1,500 to $2,500 for a single person, $2,000 to $3,000 for a couple.
Spain
Spain offers even better food value than Portugal, with grocery costs running about 30% to 40% below the US. Housing in southern Spain (Costa del Sol, Valencia, Alicante) runs $500 to $900 for a nice apartment. Restaurant meals cost $8 to $12. Public healthcare is available after 12 months of legal residency.
Total monthly budget: $1,400 to $2,200 for a single person, $2,000 to $2,800 for a couple.
Eastern Europe (Romania, Bulgaria, Hungary)
This is where Europe gets genuinely cheap. A nice apartment in Bucharest, Sofia, or Budapest runs $350 to $600 per month. Restaurant meals cost $5 to $10. Groceries are 40% to 50% cheaper than the US. The quality of life in these cities has improved dramatically, with modern coworking spaces, excellent internet, and vibrant food scenes.
Total monthly budget: $1,000 to $1,800 for a single person, $1,500 to $2,500 for a couple.
Category-by-Category Breakdown
Let me put the numbers side by side so you can see the differences in each spending category. These are averages for a single person living comfortably (not bare-bones, not luxury).
| Category | US (Mid-Size City) | Southeast Asia | Latin America | Southern Europe |
|---|---|---|---|---|
| Housing (1BR) | $1,400 – $2,200 | $300 – $600 | $400 – $800 | $500 – $1,000 |
| Groceries | $400 – $600 | $100 – $250 | $150 – $300 | $250 – $400 |
| Healthcare | $400 – $700 | $50 – $150 | $50 – $200 | $100 – $200 |
| Dining Out | $300 – $500 | $100 – $200 | $150 – $300 | $200 – $350 |
| Transport | $200 – $500 | $30 – $100 | $50 – $150 | $50 – $150 |
| Internet + Phone | $100 – $200 | $20 – $50 | $30 – $60 | $40 – $80 |
| Total Monthly | $2,800 – $4,700 | $600 – $1,350 | $830 – $1,810 | $1,140 – $2,180 |
The numbers speak for themselves. Even on the high end, Southeast Asia costs less than the low end in a mid-size US city. Latin America and Southern Europe fall somewhere in between, with Latin America offering closer to Southeast Asian pricing on food and healthcare, and Southern Europe offering a more familiar Western lifestyle at roughly half of US costs.
The Hidden Costs Nobody Talks About
The comparison charts above cover the obvious expenses, but there are some costs that catch people off guard when they move abroad. Let me walk through the ones I’ve encountered personally.
Flights Home
If you have family in the US, you’ll want to visit at least once or twice a year. Budget $500 to $1,500 per round-trip flight depending on where you’re living. Latin America is the cheapest for flights back. Southeast Asia and Europe are more expensive. This is a real ongoing expense that a lot of people forget to factor in.
Visa Costs and Renewals
Some countries charge significant fees for visas and renewals. Thailand’s retirement visa runs about $200 per year. Portugal’s D7 Visa has higher upfront costs ($300 to $500 for the application). Some countries require visa runs (leaving the country and re-entering), which adds travel costs.
Shipping and Import Duties
If you’re ordering things from the US (specific brands, electronics, specialty items), shipping costs and import duties can add up. This is less of an issue in Mexico (close proximity) and more of an issue in Southeast Asia (longer shipping times, higher duties).
Tax Preparation
US citizens have to file taxes no matter where they live. Expat tax preparation is more complex than domestic filing, and accountants who specialize in it typically charge $500 to $2,000 per year. You also need to file an FBAR if your foreign accounts exceed $10,000. According to the IRS, failure to file can result in penalties of up to $10,000 per unreported account.
VPN and Digital Tools
Some US websites and services restrict access from foreign IP addresses. Your bank might flag international logins. Streaming services show different content libraries. A good VPN solves all of these problems. Surfshark is what I use because it’s affordable, fast, and works reliably across all the countries I’ve lived in.
How Online Business Owners Benefit the Most
Here’s where the cost of living difference becomes a real competitive advantage. If you’re earning dollars online and spending in a lower-cost currency, you’re essentially giving yourself a raise without making a single extra sale.
Let’s say your ecommerce store generates $5,000 per month in profit. Living in a US mid-size city, that’s a tight budget after rent, food, healthcare, and other expenses. Living in Chiang Mai or Medellin, that same $5,000 puts you firmly in the “very comfortable” category, with money left over to reinvest in your business.
That reinvestment capacity is huge for business growth. Instead of spending every dollar on living expenses, you can invest in better keyword research tools like KWFinder for your SEO strategy, hire help through OnlineJobs.ph for $400 to $600 per month (a full-time virtual assistant in the Philippines), and invest in SEMRush for comprehensive SEO and competitor analysis.
If you haven’t started your online business yet, the barrier to entry is lower than you think. A Shopify store costs about $39 per month to run. Our high-ticket niches list has over 1,000 product categories to choose from. And you can learn the entire business model through our supplier sourcing guide.
Setting Up Your Infrastructure for Living Abroad
Making the most of the cost of living difference requires getting your infrastructure right before you move. Here’s the toolkit I recommend based on years of living this lifestyle.
Business Formation
Keep your business entity in the US, preferably in a state like Wyoming or South Dakota that’s friendly to non-resident owners. Check out our complete business formation guide for the full walkthrough. For the actual LLC filing, LegalZoom offers comprehensive formation packages with ongoing compliance support.
Domain and Hosting
Your website needs to stay fast and reliable regardless of where you’re accessing it from. Namecheap is what I use for domain registration because the prices are fair and the management dashboard is straightforward.
Productivity and Communication
When you’re managing a business across time zones, having the right productivity stack is essential. Google Workspace gives you professional email, document collaboration, video calls, and cloud storage in one package. It works the same whether you’re in New York or Bali.
Virtual Mailbox
You’ll need a US mailing address for your business and personal correspondence. Traveling Mailbox gives you a real street address, scans your incoming mail, and lets you manage everything digitally from anywhere in the world.
Is It Actually Worth Moving Abroad?
Let me give you the honest answer: it depends on what you’re optimizing for. If you’re optimizing for maximum financial efficiency, the numbers are overwhelming. Living in Southeast Asia or Latin America on a US income is like getting a 50% to 75% raise overnight.
But cost of living isn’t everything. You need to factor in distance from family, cultural adjustment, language barriers, healthcare access, and your personal preferences. Some people thrive abroad and never look back. Others find that they miss the convenience and familiarity of living in the US.
My recommendation is always the same: before you commit to anything, take a 2 to 3 month test trip to your top destination. Rent an apartment, set up your workspace, and live like a local. You’ll know within a few weeks whether it’s right for you.
And here’s the thing that a lot of people overlook: you don’t have to choose one or the other permanently. Many digital nomads and remote business owners split their time between the US and abroad, spending a few months in each place throughout the year. That gives you the best of both worlds.
Here’s how E-Commerce Paradise can help you build a location-independent business:
Turnkey Done-For-You Store Service: We’ll build your entire ecommerce store from scratch, find suppliers, set up your product listings, and get you ready to launch.
1-on-1 Coaching Program: Work directly with me to build and scale your online business with personalized guidance every step of the way.
Ecommerce Paradise Masterclass and Community: Get full access to the masterclass training, our private community, and group coaching calls.
Google Shopping Ads Management: Let our team handle your ad campaigns so you can focus on growing your business.
Recommended Tools and Resources: Check out the full list of tools, software, and services I personally use to run my businesses.
I wish you guys the best of luck out there. Whether you decide to stay in the US or try living abroad, the most important thing is building a business that gives you the freedom to choose. That’s what this whole thing is about.
Related Articles
If you found this useful, these guides go deeper on related topics:
- Best Countries to Retire Cheaply in 2026
- Best Countries for American Expats in 2026
- How to Start an Online Business as an American Expat
- Every Digital Nomad Visa Available in 2026
- FBAR Filing for Expats: What It Is, Who Has to File, and How to Do It
Trevor Fenner
Email: trevor@ecommerceparadise.com
Phone: (307) 429-0021
5830 E 2nd St, Ste. 7000 #715, Casper, WY 82609
About | Contact | Resources
Trevor Fenner is an ecommerce entrepreneur and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
