Today’s guest post is from Shawn over at Freedom 33. He left his native Canada for Mexico and now spends his time surfing, taking photos and exploring. Not a bad life.
And Shawn’s story strikes a chord with me. While I have no plans to move now, after our girls leave the house, all bets are off. I’ve always loved the ocean, but living anywhere near it in the United States is very expensive. I can see myself being Shawn’s neighbor down the road.
And if you take nothing else from this post, do yourself a favor and take this line to heart:
“What I love most about my life in Mexico is that although my income isn’t high, my entire life is open to exploring new opportunities and interests, which is where I believe the real magic is made.”
That’s powerful stuff.
Take it away Shawn! And keep some cerveza cold for me!
There’s only one way to become wealthier – save more money. And there are two ways to do that. One is by making more money, and the other is by spending less. In many cases, people are already making plenty of money and the prospects for increasing by much, especially quickly, may not be all that high. But people don’t see it this way. They only see how much others are making, or how much they aren’t earning, or how much everyone is spending, rather than focusing on what they have and seeing spending and earning as completely distinct from one another. The problem with cultivating a focus on chasing endlessly higher earnings is that you’ll never feel totally satisfied because you can never have all of the money in the universe. Many have tried, all have failed.
Alternatively, in most cases, quickly reducing spending is very achievable. You can learn to feel far more of a reward from saving and investing your money or avoiding consuming something that’s better left unconsumed than you ever would have from adding a bit more money to the top of your money stack. Hell, you may even just save the world in the process, and there’s a lot of ways to do this. Money is simply a tool to help you live the life you want to live. As Tim O’Reilly said:
“Money is like gas during a road trip. You don’t want to run out… but you’re not doing a tour of gas stations.”
Never forget that.
So what’s my secret?
Well, in a time where the cost of living is soaring and wage growth is practically ever-stagnant in Canada and the USA, I am here to proclaim that The American Dream is alive and well.
In Mexico.
In 2016 I sold my house in Canada in an unreasonably hot market. Although it wasn’t the plan at the time of sale, a few months later I used the proceeds to purchase a small duplex in Baja California Sur, not too far from the world-famous Cabo San Lucas. I rent out the two units to tourists and travelers on Airbnb. The income from this is enough for me to cover my basic cost of living in Mexico including food, utilities, household items, beer and the occasional surfboard repair. I am, of course, mortgage-free.
Mr. 1500 note: I LOVE that part of the budget goes to surfboard repair!
Currently, I continue to work in Canada remotely. I rotate 3 weeks on and 3 weeks off. I continue to work in order to further build my ‘seed’ for the future and to possibly invest in an expansion of my house that will further increase versatility and rental income. But in theory, a simple life in Mexico is already sustainable. I plan to leave my current job by the spring of 2019 before I turn 34.
While house prices continue to rise to unreasonable rates and beyond in many desirable parts of Canada and the USA, there are still many beautiful parts of Mexico where one can own or rent a beautiful space for a far more reasonable price, allowing them to enjoy it and their free time that much more. Mexico is an incredibly diverse place. For me, the draw is the beaches and the surf of the Pacific coast. However, there are all sorts of adventure communities including those based around world-famous rock-climbing locations, trekking, rafting, scuba diving, fishing, skydiving and more. Mexico City is among the largest in the world and is a truly global metropolis where one can explore modern and ancient cultures. Meanwhile, throughout the rest of Mexico are cities and villages of all sizes full of cultural, archaeological and artistic riches as well as a deep and important history. If you’re still not convinced of the magic of Mexico, just consider that all of the chili peppers in the world originated there*.
Now, are you sold?
My house in Mexico cost me $75,000 USD and as well as providing me with a place to live, generates about $1200 USD/month in rental income. My monthly mobile phone bill in Mexico runs about $20 USD per month without any kind of contract, and I pay about $10-15 USD for 2 months of power services. Since my house is in a fairly remote location, one of my most expensive utilities is internet at about $40 USD per month. A bag of deliciously fresh groceries usually runs me about $30 and will last most of a week. Most of any work I do there is online, so I rarely use my car to commute. Primarily I use it for larger trips like week-long surf excursions while I walk to and from the local beach as much as possible.
But Mexico is dangerous.
True, violent crime is at an all-time high in Mexico and has been steadily increasing for over 10 years. However, whether you like to accept the fact or not, that violence exists due to the size and voracity of the American market for drugs. Mexican cartels make a large portion of their money moving drugs from Central and South America to the USA and when such large and seemingly endless profit margins are available, there will always be a struggle to control them. And when this occurs outside of the law because of a failure by governments to regulate narcotics, violence ensues.
Tourists, expatriates and regular Mexican people are not at much risk of this violence on a daily basis. And the fact of the matter is that where you live is likely just as dangerous, if not more. There are a million and one things one could do that are statistically more dangerous than going to Mexico.
Although inequality is rampant (as in much of the world these days), the Mexican economy is recovering nicely from the 2008 crisis, with unprecedented low-interest rates and inflation thanks to a relatively high amount of macroeconomic stability. Because of this, more people are staying home rather than seeking work abroad**, which should have positive social impacts moving forward.
But foreigners can’t own land in Mexico.
Not true. Well. It is sort of true but it’s not really. Foreigners can’t own land directly within 50km of the coastline, but just stop with your complainypants attitude already. All you need is a ‘Fideicomiso’ which is effectively your title held in trust by a bank, but as the beneficiary, you get to call the shots and receive the benefits, making it effectively yours. There is a small annual fee, but the up-front costs are quite high, in the range of $6,000 – $10,000 USD depending on the property size and value.
But you’re giving up your career.
There are so many ways to make money these days. I sell my photos for $15 USD (at least 2 day’s worth of tacos, for example) at the local Farmer’s Markets and shops. I provide Spanish-English translation services online, effectively getting paid to continue to improve my language skills. I even sell photos on a stock photography website. No, none of these things currently bring in high returns, and many never will. But they’re things I’m interested in and when you understand that any additional income is pure gravy, it doesn’t really matter if you earn $100 or $100,000. Gravy is gravy. I don’t know many people who are holding on to their careers simply for the love of it rather than the paycheque. The bottom line is that everything you have done in the past is part of who you are and shapes how you will do the things you will do in the future. Don’t be afraid to let go of something you’re not even that crazy about in order to live freely and on your own terms.
But what will you do?
Oh, I don’t know, maybe I will pedal around New Zealand chasing empty waves for a while. Or have a great time exploring the beaches near home where the surf is consistent and the community is amazing. There’s also the whole rest of Mexico that has even better places to surf. All I’m saying is this: Find your “thing” and you’ll never run out of a meaningful pursuit no matter how long or short your retirement may be or what the markets do. I may have a family one day, and it will be great to be able to spend my time with them as my children grow rather than sitting in an office somewhere looking at a picture of them. In the meantime, I will fill the time between surf sessions with reading, writing, practicing languages, taking photos, training for triathlons and sharing cervezas with the good people around me.
What I love most about my life in Mexico is that although my income isn’t high, my entire life is open to exploring new opportunities and interests, which is where I believe the real magic is made. That is, the opportunities that spark my curiosities, not simply whichever pay the most in the short term. We do our best work in these situations and I may just stumble across something that will earn me just as much or more than did my previous career. Although I am not counting on it at all; this would be simply a pleasant side-effect of the pursuit of curiosity and interest.
The bottom line.
You don’t actually have to move to Mexico, that’s just what I did. I wanted to live somewhere I can surf almost every day and still have time to pursue other interests. Although moving to another country might be a surprisingly direct way to achieve some of the spending and lifestyle actualization goals you hold, you may not have to move at all. However, if an unfounded fear of all-things-related-to-change is what is holding you back, and what made you skeptical of even getting this far into this post in the first place, then you’re exactly who I am writing this for, and I’m going to need you to play along.
There is no place here for unfounded fear of change, for change is exactly what we seek to achieve. I mean, why else would you be here?
*It may also be that wild chili peppers existed in a small part of Ecuador prior to colonization and domestication. Either way, very grateful for the propagation.
**There is a growing sentiment within Mexico that people should stay in Mexico when they can. Of course, the current American political climate is probably discouraging people from seeking opportunities there that they may have in the past.
Great Post!
A lot has to be said about the benefits of geo-arbitrage. As teachers, we would never be able to save the money that we are with working in the US. That is why we moved overseas and are now have a savings rate of 70%
I think a lot of it comes down to two things:
1. Flexibility
2. Courage
I love how Shawn had the courage to make his own mark!
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That reminds me of an old girlfriend who graduated with a teaching degree and instead of battling to get a Teacher on Call position in her community in Canada, she went to Bangkok to teach. Ultimately she then went to China for a few years and Egypt before coming home with all her debts paid, money saved, and experience running an English Department rather than just getting her foot into a full-time teaching position for the first time within the last year or two, which if she hadn’t gone overseas would probably be the case.
Shawn – Freedom33 recently posted…First Guest Post
Awesome sauce man! Looks really nice and you’ve carved out a great set up for yourself. You’re into a lot of the same outdoor sports that I am, I should come visit!
I’ve only been to eastern Mexico for scuba diving in Playa Del Carmen and Cozumel, but have always wanted to do a big Baja trip and some volcano climbing down there.
Thanks! Super glad you enjoyed the read.
Come down anytime (seriously though). Just send a message and/or check out my Air BnB listings to see if it suits you. Special rates available for the thrifty and Financially Independent 😉 I also know of other great accommodations in the area in case mine doesn’t suit your needs or availablity!
I am going to Peru in May but am overdue for more travels around Mexico too. Won’t be long now I hope.
Good for you! I really respect how you grabbed the bull by the horns and made this happen. Super smart with the rental scheme as well.
I love Mexico. Having been to both coasts a handful of times. Real big fan of the Puerto Vallarta vicinity. I agree with Carl that for me, being near big water is a huge draw. The trick is finding an affordable spot.
Thanks for showing it can be done. Now I’m really really sad about all this crappy sprinter going on here in MN. Enjoy your sunshine and warmth for us suckers up norte!
Haha thanks! What isn’t completely clear in this article is that I am still working in northern Canada at a remote work location. I go there for 3 weeks, and then have 3 weeks off, constantly on that rotation. I plan to do that for about another year at which point I should be quite well-positioned to make a full-time go of it in the desert. All a part of the process I suppose!
I’ve definitely had my share of fortune and opportunity along the way, but there were a few turning points where fortunate as I was, it really required me to take real action as well and dive into the deep end.
“Never waste a good crisis” -Winston Churchill?
Shawn – Freedom33 recently posted…First Guest Post
Once I kick the kids out to the curb (college), I’m there. Mexico, here I come! Is it anything like those fancy all inclusives where someone stands buy and offers me a drink?
I did some research and Shawn’s part of Mexico sounds like the opposite which I quite like! I can get my own beer thank you! 🙂
Cool thing about where I am is you can whichever experience you want, with Cabo San Lucas just 40 minutes down the road, meanwhile I’m out here in the desert avoiding the Spring Breakers. Where I am is developing though, I’m just hopeful it will be at a reasonable rate with a bit of planning (My Mexican friends would call me naive for even saying that).
Shawn – Freedom33 recently posted…First Guest Post
Life steps from the beach with some tasty waves… pretty sweet! I’m always excited to see new affordable and uncrowded surf spots 🙂
How is it getting flights out there, and whens the best surf?
Surf is good almost always believe it or not. When it’s not good here there are lots of high-quality waves within a half hour, and some world-class waves within a few hours. At times a little crowded but in the grand scheme the lineups are actually quite empty.
Along the Pacific Coast of Mainland Mexico is where the real magic happens. I am off to northern Peru next month also. Fingers crossed 🙂
Shawn – Freedom33 recently posted…First Guest Post
Sorry – you can fly to SJD (San Jose Del Cabo). I am about an hour from there. It takes me a little over 4 hours directly from Vancouver or Calgary.
Shawn – Freedom33 recently posted…First Guest Post
This is great! And you’re right Shawn, fear of change/the unknown does hold people back. But the illusion of safety is really just a prison of our own making. If you’re brave enough to do something different, it doesn’t take long to feel like it wasn’t so scary and you should have done it a long time ago.
So cheers to you in Mexico! I’m still waiting for spring in Colorado, but I’ve got some long-term sunny plans too. Save some sun and sand for me!
So true. I must admit my ‘nothing to lose’ attitude was sort of a reaction to a set of circumstances that were more or less thrust upon me (read “Break Up”), but I am glad I made something of it, rather than not. 🙂
Shawn – Freedom33 recently posted…First Guest Post
I’m glad for this line: “You don’t actually have to move to Mexico, that’s just what I did. ”
“What I love most about my life in Mexico is that although my income isn’t high, my entire life is open to exploring new opportunities and interests, which is where I believe the real magic is made.”
One needn’t move somewhere new to experience a new perspective. It s seemingly easier to go somewhere new to experience openness in one’s life, but it isn’t necessary. It all depends on how the individual allows themselves to experience their lives and the world. Yes, it is fun to move and experience new places, and see things differently. But it isn’t necessary.
What is necessary is to be open for a new view of oneself. Otherwise, once you move somewhere exotic you find you have taken your old self with you.
Totally.
The most necessary thing for me was the ability to surf often without too much effort. Where I lived in Canada it was 2 hours each direction to the waves, and they weren’t often very good :P.
Shawn – Freedom33 recently posted…First Guest Post
I’ve been floating around being a digital nomad for the FEIE credit for a while. Been working up a few digital side hustles. Maybe I’ll net more after tax than being in NYC after all expenses and get to travel for a few years. Going back to Bali would be nice. I loved the diving there!
I would recommend heading further out into Indonesia next time! Such a great place, endless discovery.
Thanks for reading.
Shawn – Freedom33 recently posted…First Guest Post
Mexico is a great place to practice geo arbitrage! It sounds like Shawn is doing great — living a free life in a low cost location with warm weather.
Tons of people dream of this kind of freedom — Good for him actually doing it!
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Besides inspiration, what we all must keep in mind with anyone that we observe who seems to be living large (think social media stars) is the flipside of it all. Everyone has their own struggle. Every situation has its pros and cons. Our experience is mostly a result of which of those things we choose to focus on the most.
Shawn – Freedom33 recently posted…First Guest Post
Nice story! It seems like geo-arbitrage is the way. I would really not like to leave my country, but there could be so many advantages to live in another place that I may consider it later.
Well done Shawn!
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Thank you so much!
I like to promote simply remaining open and seizing the opportunities that come your way. That doesn’t require changing locations, necessarily.
Shawn – Freedom33 recently posted…First Guest Post
Your life sounds great. Nice job getting there. We don’t want to move right now because our kid is in school. Someday, I’d like to live in South America about half time.
Enjoy!
Thanks Joe!
Like I said, pros and cons to everything. The ‘greedy’ side of me that drifts from simplicity to complexity wants to keep working a while longer to buy other affordable homes in nifty places that Are versatile and can be a part of my Air BnB empire 🙂
Great attitude, Shawn, and impressive how nicely you’ve realigned your time and values. Also appreciate the cash flow angle in your new primary residence.
My wife and I love Mexico City – it’s our version of Paris or New York, but ridiculously affordable. It’s another option for those looking for an urban escape route.
Keep sharing your experiences and setting the bar for the rest of us,
CD
“My wife and I love Mexico City – it’s our version of Paris or New York, but ridiculously affordable.”
I’ve read this same thing on lately in a couple other articles. I really want to get my ass down there. Also, I should have paid more attention to Spanish in school. Damnit!!
I haven’t been yet but I hear it is amazing! Especially if you are into cities. A lot of my friends are from Guadalajara and speak highly of it as well!
Shawn-Freedom 33 recently posted…30 Places I Could Retire Within a Year
I spent my junior year in college at the National University in México City & returned after graduation to work as an English teacher for 3 1/2 years. Doing this gave me great fluency in Spanish & experience to get jobs in social work & a great public school in the US. It was one of the greatest experiences of my life & opened my mind to the fact that there are numerous equally valid ways to do anything in life.
One thing that bothers me about articles about retiring outside the US is that all mention the cost of living but few mention the necessity of having an open mind. This is NOT the US, things are done differently & Americans have gotten a bad reputation due to ignoring this. You catch more flies with honey than with vinegar, my grandmother always said. Mexicans are wonderful people, as I am sure that Shawn can attest.
“It was one of the greatest experiences of my life & opened my mind to the fact that there are numerous equally valid ways to do anything in life.”
Wow, so much wisdom here.
“This is NOT the US, things are done differently & Americans have gotten a bad reputation due to ignoring this.”
While I haven’t done a whole lot of traveling abroad, I’ve seen some of this horribleness. In the most glaring example, I was in the Cayman Islands on a bus when an American asked about the exchange rate. An island native told her that it was about $1.25 American dollar to $1 in the Caymans. The lady got this horrible look on her face and proceeded to ask in a very haughty manner why the Cayman dollar was worth more than the American. She went on to say that she thought America’s should be worth more. I wanted to hide under my seat and/or apologize the native. Uggghhhh.
All true things. Especially the fact that Mexicans are wonderful people.
Los Cabos is currently “the most dangerous place in the world” according to some whacky interpretations of statistics. Recently, my father, a Canadian Trump supporter and consumer of Breitbart News came to visit for the first time and had a wonderful time, despite his News sources telling him that he was entering a ‘warzone’. He met all my Mexican friends and (hopefully) realized that people are people are people, no matter what.
The problem with identifying too hard with anything (like your country, for example), is it sets you up for inflexibility and closed-mindedness when you happen to step outside your bubble and find out that, for example, the Dollar isn’t the world’s most valuable currency (great story! very relatable unfortunately!)
Shawn-Freedom 33 recently posted…30 Places I Could Retire Within a Year
I’ve seen a lot of people do this recently. Living costs in developing nations are so much lower, so a lot of online entrepreneurs are working there, saving more money, and able to reinvest more of those savings into their businesses.
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Lot of truth and good points here, but a few things missing. Like the level of violence, which while targeted among the cartels also has included innocent bystanders. FYI today Mexico has some of the most dangerous cities in the world by homicide rate (not including war zones). Might want to check the State Dept page on dangers in Mexico and read a few articles from borderlandbeat.com before moving to a country that regularly has battles between dirty cops and federal officers, not just cartel hitmen.
Recent headlines “14 murders in 36 hours in Cancun”, “Tamaulipas 6 bystanders killed”, “Ensenada 6 executed”.
They posted a security camera video of a man being executed by two who ran up and shot him to death at a table outside at night, another video was of people in a coffee shop during the day when a rolling gun battle including fully automatic weapons occurred outside.
29,168 murders last year in Mexico. At the peak of the drug war in 2013 there were 27,213 murders.
Some of the drug war hotspots are El Cabo, Acapulco and Cancun. Tourists are less at risk, but I suspect it is a lot more dangerous if you live there in Mexico full-time.
One positive you did not mention was that it is simple to get a six-month visa. So it is easy to spend 6 months in the summer camping in the US and go to Mexico in the winter for 6 months. Just be very aware of the dangers, you don’t want to end up a statistic while trying to save money on living expenses!
Thanks for the input Barb. I actually did address these things in the article. All I can add is that you really have no idea.
Personally I’m far more wary of visiting many places in America than in Mexico.
Shawn-Freedom 33 recently posted…30 Places I Could Retire Within a Year
I should also reiterate that narco culture and drug cartels exist almost solely to serve the American market for drugs.
Shawn-Freedom 33 recently posted…30 Places I Could Retire Within a Year
What does that have to do with anything? Like it is America’s fault that Mexico has a drug cartel? That there is so much violence and corruption there?
That make no sense and hate to break it to you but every nation has a market for drugs.
This over generalization makes one wonder what else is over generalized in your writing??
Yes, that is exactly what I am saying. Money, Power, Greed, Violence. Same old story. I realize it’s much easier to point the finger than look in the mirror though.
It was a pretty generic ‘overview’ kind of piece actually, so ‘generalized’ is kind of what I was going for. Thank you for the compliment.
I want to travel here, once time. I think, Mexico is very extractive, my friend tell me about it very much.
You’re right. Mexico is a very beautiful place (and I haven’t seen much of it yet!).
Shawn-Freedom 33 recently posted…30 Places I Could Retire Within a Year