American consumers are experiencing the burden of burgeoning prices like never seen before. According to a report in Bloomberg in November 2023, goods that cost $100 to buy before the pandemic are now worth $119.27. Prices over the last three years have risen by nearly as much as they did in ten years prior to when Corona virus struck.
A survey by the Bank of America Corporation (NYSE:BAC), in September, highlighted how cost of living has stressed out Americans. More than two-thirds of the employees (67%) responded by saying that inflation was rising faster than their wages and salaries. The figure was up from 58% in Bank of America Corporation (NYSE:BAC)’s previous survey in 2022.
Microsoft Corporation (NASDAQ:MSFT), this year, held off on raising salaries for full time employees, citing economic conditions and investment in artificial intelligence as the reasons for not doing so. In 2022, Microsoft Corporation (NASDAQ:MSFT) nearly doubled its budget for merit increases for certain employees, but this year the workforce will have to do with only bonuses and stock award budgets.
Intel Corporation (NASDAQ:INTC), in February, slashed employee pays after a lower sales forecast and a loss of market share. The reductions ranged between 5%, for mid-level employees, to 25% to higher executives including Pat Gelsinger, Intel Corporation (NASDAQ:INTC)’s chief executive. The cuts did not apply to hourly wage workers, however.
While several employers such as Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC) and others did not align their salaries and wages with the rising cost of living this year, there are many corporations that increased their employees’ pays to ensure financial wellness of their workforce in these testing times. One among them was Bank of America Corporation (NYSE:BAC), which increased its minimum wage from $22 to $23 in September 2023, and announced to raise it further to $25 per hour by 2025. The move will allow all employees of the bank to make at least $48,000 over the next year.
Amazon.com, Inc. (NASDAQ:AMZN) in September raised the salaries of its warehouse and delivery workers to $20.5 per hour, up from $19. The company has been very active over the last few years in making cost of living adjustments to ensure that wages increase to enable its employees to meet the challenges associated with high inflation. In 2018, Amazon.com, Inc. (NASDAQ:AMZN) raised its minimum wage to $15, which was more than double of the federal minimum wage rate in the US. While announcing the raise, Amazon.com, Inc. (NASDAQ:AMZN) also announced that it would urge policymakers in Washington, D.C. to enforce higher minimum wages across the country.
Countries With The Cheapest Cost Of Living
While the cost of living crisis worsens in the US, there are countries where individuals can live comfortably for as little as under $500 a month, and can sustain a family of four for about $2,000 during the same span. That being said, it is also important to mention that some of these countries may be an unconventional choice for digital nomads and expatriates to move to for a number of reasons, ranging from culture, low quality of life, safety concerns, and other reasons.
Tunisia, for instance, offers a high quality of life among countries with the lowest cost of living for US citizens, but is not a preferred choice for Americans simply because English is not widely spoken there. On the other hand, countries such as Libya, Iraq, and Syria are just not safe enough to live in and do not offer the same quality of life Americans can experience in their own country. Therefore, the cheapest countries are not often considered as the best expatriate destinations because of the problems mentioned.
20 Countries With The Cheapest Cost Of Living For US Citizens
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Methodology
Countries with the cheapest cost of living for US citizens are ranked in descending order of cost of living in those countries relative to the US. Data has been sourced from Numbeo. The time period is mid-year 2023, with a baseline index of 100% for New York City. To further explain, if a country has a cost of living index of 30, that means it is 70% cheaper than New York City (United States). Countries where the security situation is volatile have been excluded from our rankings.
Let’s now head over to the list of countries with the lowest cost of living for US citizens.
20. Mongolia
Cost of Living Index: 32.3
Mongolia in East Asia is one of the cheapest countries in the world, with living expenses more than two-thirds lower than what an average American incurs in their home country. According to Numbeo, Mongolia’s rent index is just 11.5. Restaurant and grocery prices also remain on the lower side. Not a lot of Americans live in Mongolia currently, but this calm and quiet country can be an interesting place to move to, especially with its vast and unspoiled wilderness, steppes, deserts and mountains.
19. Malaysia
Cost of Living Index: 32.3
Malaysia ranks among the cheapest countries for American citizens to live in. Housing and restaurants are extremely cheap. Groceries are slightly on the higher side compared to other countries with the cheapest cost of living for US citizens with an index score of 34.9, but that is still very much affordable for American expatriates. Malaysia is a great option to move to because of its diversity, warm climate, beaches, and stunning high-rise buildings, especially in metropolitans such as Kuala Lumpur. Malaysia is among the most developed countries in Southeast Asia with a thriving economy and ever-improving infrastructure.
18. Bolivia
Cost of Living Index: 30.9
Bolivia is one of the cheapest countries in South America, especially for those who earn in the US Dollar. The cost of living in the country is 69% lower than it is in the United States. A three-bedroom apartment outside the city center can cost as little as $300 a month. You can easily find a fulfilling meal for just $10, while it is common to find gym membership for $30-40 in the country.
17. Indonesia
Cost of Living Index: 30.8
Indonesia finds its place among countries with the cheapest cost of living for US citizens, with an index score of just 30.8. Housing is extremely cheap in the country – for every $100 you pay in the US on rent, it only costs $9 in Indonesia. Restaurant price index is also on the lower side with an index score of just 16.4 according to Numbeo.
16. Azerbaijan
Cost of Living Index: 30.6
Azerbaijan is one of the cheapest countries in the world, where living is about 1.5 times less expensive than the world average. The cost of living plus rent index for the country is just 20. Baku, the capital, is the perfect place to live in for American expats due to its comfortable climate, stunning architecture, and safety.
15. Argentina
Cost of Living Index: 30.3
As of 2016, more than 60,000 American expats lived in Argentina – with nearly half of them based in the capital city, Buenos Aires. The South American country is among the cheapest in terms of cost of living for US citizens. According to Expatistan, a single person can live a comfortable life in Argentina with a monthly income of just $700, while a family of four can sustain itself for a little over $1,500. Basic lunch at a business district costs an average of $9 per meal, while a combo in a fast food restaurant can range between $5-6.
14. Morocco
Cost of Living Index: 30.1
Morocco has one of the lowest costs of living for US citizens, where expenses are nearly 70% lower than in the United States. The rental index is just 7.5, while grocery and restaurant indices were measured at 27.5 and 20.8, respectively by Numbeo in mid-year 2023. According to the US Embassy, more than 1,700 American students moved to Morocco during the 2018-19 academic year for higher education.
13. Kyrgyz Republic
Cost of Living Index: 29.9
Kyrgyz Republic is a landlocked country in Central Asia that is among countries with the cheapest cost of living for American citizens. Housing is quite cheap in the country, with an index score of 11.2. According to Expatistan, monthly rent for a 900 sqft furnished accommodation in a posh area costs an average of $830 per month. Groceries are also very affordable with an index of 26.8.
12. Paraguay
Cost of Living Index: 29.1
About 2,000 American citizens live in Paraguay. It is one of the cheapest countries for US nationals to travel to and live in. The country’s rent index is just 9.7, whereas grocery index was measured at 24.4 by Numbeo compared to the United States. According to Expatistan, a single person can live a comfortable life in Paraguay with a monthly income of only $936, while a family of four can be sustained at just over $2,200.
11. Kenya
Cost of Living Index: 28.9
According to Numbeo, Kenya’s cost of living index is significantly lower compared to the United States. The index for rent is just 7.1, for groceries it is 26.6, whereas for restaurants it is only 23.3. As per Expatistan, $2000 per month is enough to meet expenses for a family of four in Kenya.
10. Algeria
Cost of Living Index: 28.6
Cost of living in Algeria is 71.4% percent lower than in the United States. Moreover, according to Numbeo, consumer prices inclusive of rent are nearly 250% higher in the US compared to the African country, whereas restaurant prices are 421% higher.
9. Ghana
Cost of Living Index: 28.5
Ghana has one of the cheapest costs of living for US citizens. A restaurant bill of $100 in the US would cost just over $25 in Ghana. The grocery index is also substantially low compared to the US with an index score of just 27.5. Approximately, 3,000 American expatriates live in the African country who made the move from the US for reasons ranging from business opportunities to racial equity.
8. Tunisia
Cost of Living Index: 27.4
According to Bright Tax, several thousand American citizens live in Tunisia. They do so for a number of reasons, such as friendly locals, stunning beaches, and a high quality life enabled by low cost of living compared to the US. Americans that have moved to Tunisia with their savings in the greenback are able to live a luxurious life in the country where average expenses are 72% lower than in their home country.
7. Turkiye
Cost of Living Index: 27.1
American tourists have been flocking to Turkiye lately because of its scenic beauty and also because it is a cheap destination to travel to because of its low cost of living compared to the US. It is one of the cheapest countries in Europe with a family of four needing a mere $1,500 per month (excluding rent) to live a decent quality of life. Grocery and restaurant prices also remain extremely low. About 9,500 American expats live in Turkey, and a whopping 377,000 tourists traveled from the US to Turkiye during the first half of 2022.
6. Uzbekistan
Cost of Living Index: 26.6
Uzbekistan has one of the lowest costs of living for US citizens. The same grocery item that costs $100 to buy in the United States can be bought for only $25.5 in this Central Asian country. Rent index also remains quite low at just 11.4. Fast food is affordable as well, with a combo meal at any restaurant chain costing an average of $2.74 according to Expatistan.
