Why I Left the USA and Won't Ever Return: The High Cost of Living
#1 in the "why I left the US" Series
You can find the author reading this article (with some ad-libs) here.
I left the United States and moved to Europe in 2022 and it was the best decision I’ve ever made. I have no regrets, and no interest in ever moving back. I left for a number of reasons. I’m writing a new series of articles to delve deeper into each reason and to compare each one to my experience living in Europe.
My number one reason for leaving the US was the high cost of living…
Living in the US
While living in the US (in Northern California) I was working two full-time jobs because I had to earn $10k a month just to cover my overhead. This was, in part due to having a brick and mortar business. When Covid lockdown happened I found I could cut my expenses in half. But $5k a month is still a lot of money and this amount barely covered my living expenses plus food and my health insurance.
Five thousand dollars a month did not cover entertainment—no meals out, no museums, or movies. It did not cover the cost of my gym, travel, or the health care I needed that was not covered by insurance. It allowed me simply to sit at home, cook all my own food, hike and read. Which is great, for awhile.
I had some passive income, and realized I needed to find a way to live on $2k a month or less in order to move forward.
I made a long list of options. I could move counties in California, move into a tiny home, move into a van, or even move elsewhere in the US. But in doing this I couldn’t escape the high cost of healthcare or the high cost of food.
Plus, as we all know, the cost of living in most cities keeps rising. And then there was the hostility, hate mongering, fear, and safety… It’s a long list and the negatives felt overwhelming.
I had been researching less expensive places to live for almost ten years by that time. On my short list was Mexico, Ecuador, Costa Rica, Panama, Spain and Portugal. I also knew quite a few digital nomads who traveled the world on $2k a month (and still do).
A plan was set in motion. While I did initially move into a van for a year to travel the US and am so glad I did, my goal was to leave the US for all the reasons I mentioned above (and more).
Recent US Visit
I recently visited the US (November 2024) and was reminded of the cost of going out to a restaurant. It was about $120 for two people to have a nice meal in Los Angeles, which is actually less expensive than San Francisco. In Portugal this past weekend it was €30 and the restaurant was significantly nicer/higher end. And the food, while different than California cuisine, was absolutely incredible.
More Comparisons
I used to pay around $130 for a haircut in San Francisco and my hairdresser was absolutely worth every penny. Here it’s €35 and that’s considered pricey.
My groceries in Marin County (across the Golden Gate Bridge) were $250 a week for one person which totals $1,000 a month. Here I can spend as little as €30 a week.
Healthcare, which will be a separate post, is a fraction of the cost as well. €20 - €100 for an MRI here compared to $3,500 in the US, if you can get one.
Rents in San Francisco (near the city center) for a one bedroom are, on average $4,000 a month. In Porto they’ve definitely gone up but are still significantly less at $1,200 to $1,500. According to my research, rents are 3-4 times more in California. And they’re more all over the US, unless you live in a rural town, far from a city.
A car wash in Marin County was $60 for the cheapest option, where they barely do anything. Here it’s €7 for the most expensive option. And the list goes on…
The Comparison List is Long but it’s not just Portugal
You can find a significantly lower cost of living in many other places. In Europe you also have Spain, and the Balkans. There’s South America, Central America and Asia.
Albania (in Europe), is much less expensive than Portugal and it’s in the Mediterranean boasting a gorgeous coastline, beaches and the Ionian Sea. There’s even a section known as the Albanian Riviera.
One of my very good friends (who gave me permission to tell you this) currently lives in Cambodia for $700 a month (her rent is around $200/month for an amazing bungalow with a pool). And she has a friend living in Cambodia on $500 a month. The difference is that the friend cooks all of her own food.
In the US
Of course, costs depend on where you live in the US but nowhere is “cheap” anymore. But it’s not the just the high price of things that drove me out, though that was the main reason. As I mentioned at the beginning of the article, the reasons I wanted to leave were many. I’m going to go over each point one by one in the upcoming articles.
These include:
Cost of living article (this one :) or podcast episode
Healthcare article or podcast episode
Conclusion
I'm thrilled with my choice to leave America for Europe. My day-to-day costs are far lower, allowing me to finally achieve financial freedom even with a very low income. And Europe offers so much more in terms of culture, cuisine, history, and overall livability. I have no regrets, and no desire to ever return to the high prices and stress of US life. For me, this move was absolutely the right decision and if you’re considering a move out of your home country, please check out my free “Live Abroad” series, as well as my super affordable class.
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Part 4—12 Minimizing Mistakes Part 2
Part 5—A Personal Case study (re: Minimizing)
Part 6—Your Move Abroad: The Ultimate Checklist
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Other Popular Articles/Podcast Episodes:
Travel Hacking: What and How!
Values: Differences Between Portugal and the US—Part Four.
Inside the Homes: Differences Between Portugal and the US—Part One.
Sidewalks, Zebra Crossings, Smells and More: Differences Between Portugal and the US—Part Two.
Safety: Differences Between Portugal and the US—Part Three.
First Six Months of Living Abroad
How/Why I Ended up in Portugal
Living Abroad After Two Years
Archive of all my Articles and Podcast Episodes
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—Expat on a Budget AKA Living Abroad on a Budget and My Unknown Adventure by Kimberly Anne
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We're almost neighbours, living just outside Pontevedra, but made the move from N. California almost 30 years before you did. When we moved (initially to France) it seemed that prices were more or less equivalent.
We moved to Galicia in 2018, bought and renovated our 140m2/1500sq ft house for cash. Before the post-covid inflation, our total housing costs - property taxes, energy including central heating, water and sewage - were €2500. PER YEAR! Higher now mainly because of higher energy costs but still affordable.
Eating out is more expensive here than Portugal but still affordable. 30€/head will get you 2 courses of good quality, with wine. In the summer we had an amazing meal with some extraordinary shellfish and top local wines which came to €65/head.
We have a small business and pay the minimum (forfait) into Spanish social security which is €300/month. This includes health care, unemployment (which we'll never use but still...) and if I work for 15 years here (until 66) I'll get the minimum Spanish pension, currently..... 300€/month. We are both covered for health care and when I broke 8 ribs a few years back and spent a week in hospital (including 2 nights in ICU) the only thing I paid for were pain killers after I came home.
Yeah, not thinking about moving back to the 'States, ever.
I don’t think there’s anything that we talk about more in Italy than marveling at how little we are paying for things that are vastly higher quality than what you get in the United States.