When I turned 50, I wanted to retire from my career as a pharmacist and move abroad.
The high cost of living in the US made an early retirement there feel impossible for me, but it seemed within reach with strong financial investments and a strategic move.
Mexico was my chosen retirement destination because it’s generally more affordable than the US and close to San Francisco, where my family lives.
From there, I settled on Ajijic, Jalisco, a popular Pueblo Mágico (a “magic town” deemed to have cultural, architectural, or historical significance in the country) on the shores of Lake Chapala, known for its pleasant weather and vibrant culture.
Sorting, selling, and donating my belongings was exhausting, but getting a visa appointment at the Mexican Consulate in San Francisco proved harder.
After weeks of calling the appointment line to no avail, I hired an immigration facilitator who told me the earliest appointment available was at the consulate in Laredo, Texas.
After booking several flights, dealing with cancellations, and driving overnight, I made it to an appointment down South and secured my visa by the end of 2022.
Perhaps unsurprisingly, this was the first of many obstacles I’d encounter as a new expat abroad.
From the start, I made several mistakes when securing my housing
I arrived in Ajijic, Jalisco, during the peak rental season, when northern “snowbirds” travel south for the colder months. So, the rental market was especially competitive.
Before the move, I had pictured living in a traditional Mexican-style house with high bóveda (vault) ceilings and an interior courtyard full of greenery. Although I checked real-estate companies’ websites daily, nothing came close to what I had in mind.
When I finally saw a lovely house on Facebook, I immediately called the real-estate agent and planned a visit. It looked even more beautiful in person.
Afraid to miss out on this opportunity to live my dream retirement, I agreed to prepay a full year’s rent plus a security deposit. Soon, I realized several downsides of living there.
The home was in a neighborhood where loud block parties often went late into the night. After sleepless nights, a security scare, and a gas leak on the property, I’d had enough. I broke the lease and received only a partial refund of my prepaid rent.
This costly lesson made me realize I should’ve tested out the neighborhood first by staying in a hotel or Airbnb nearby and getting familiar with the area before locking myself into a lease. I’d let my rosy ideal carry me away, and prepaying rent left me with no leverage when things went wrong.
After a few months, I started looking to buy property because I wanted more control of my living situation. Plus, Ajijic has long been a popular destination for expat retirees, so it seemed like a good investment.
By then, I knew the area better and purchased a house in a quiet neighborhood that suited my needs.
Exchange-rate fluctuations and unexpected expenses put my budget to the test
Before my move, I’d calculated a monthly budget that would make my early retirement sustainable for several years.
However, I hadn’t factored in how much this budget would be impacted by exchange rates.
When I first arrived in January 2023, the exchange rate was about 19 pesos per dollar. By mid-July, it had dropped to below 17. Although my spending in pesos didn’t change, my living costs in dollars rose.
The fluctuating exchange rate magnified my expenses and pushed me over budget. Watching my plan falter rattled my confidence in those first months.
Initially, I used my Charles Schwab debit card to withdraw money from ATMs, since the card reimburses ATM fees. Still, the exchange rates weren’t good, and Mexican bank rates were worse.
A few months later, I learned about Wise, a service that offers low-cost international money transfers at the mid-market rate. I set alerts to move money whenever the rate hits certain levels, giving me more control over my cash flow.
Unexpected expenses also threw several wrenches into my detailed financial plan. For example, I made two trips home to San Francisco in the first six months for family emergencies.
While in Mexico, I’d anticipated keeping my transportation costs low by using the local bus system. However, the stops weren’t always clearly marked, and I was still learning my way around. In the early days, I often relied on pricier taxis for my trips into nearby towns because of the language barrier and my unfamiliarity with the area.
I also discovered the “gringo tax.” Being an Asian woman speaking broken Spanish, I was instantly recognizable as a foreigner.
Since I didn’t yet know the going rate for products and services in town, I often overpaid. For example, one vendor charged me different prices every time I shopped at his store. Another time, I paid 150 pesos for honey from a market vendor and later heard him charge a local customer 120 pesos for the same item.
Now that I’ve been here three years, I have a better sense of what things should cost, and my Spanish isn’t as rusty. However, those small expenses really added up in those first few months.
That challenging first year abroad helped me build a clearer strategy moving forward
My first year as an expat abroad was a disorienting experience full of rookie mistakes and unexpected expenses that taught me to research carefully and stay flexible.
Through conversations with fellow expats and locals, I gradually discovered the best-priced shops and reputable service providers, and gained a deeper understanding of the local culture.
Looking back, I think of “Year One” as my training ground, when I spent more, slept less, and learned fast. Once I found my bearings, I developed a sustainable retirement strategy.
Now, three years later, I wake up to bird calls, ready for each new day with clear expectations and a solid financial footing.
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