This might seem obvious, but when you're in the 'pink cloud' planning stage this fact is easy to overlook. Lorena and I have lived for months at a time in a number of small Mexican towns and villages. If this figure sounds fantastic, remember that to many Mexicans, even this modest sum would seem generous. One of the best ways to forecast what it will cost you to live in Mexico is to first calculate how much you spend now, in familiar, comfortable circumstances at home. For this price, however, you shouldn't expect a lavish beachfront condo or a swimming pool in a gated community.
Liquor costs less in Mexico, but it also goes down easier.
Water may be free or just a few dollars a month. Basic service is affordable, but long distance international calls will be a painful drain on your checkbook. Call your long-distance phone company and get their rates to Mexico. If they seem high, expect to pay even more for international calls made from Mexico. Plan on using email and a fax machine if you make many calls or need to keep tabs on a business.