Puerto Vallarta, Mexico - Here's the most important thing to understand about budgeting your new life overseas: You can spend as much or as little as you want to live almost anywhere.

Some places are generally more affordable than others, and a handful of places are absolutely cheap. But globalization means you can enjoy more or less any standard of living more or less anywhere on earth, if you're willing to pay for it.

The exceptions are some absolutely cheap locales such as Ecuador, India, Thailand (outside Bangkok), and the Philippines (outside Manila). In these places, your cost of living is artificially low because, frankly, there isn't much for you to spend your money on.

This is not to say that, in these places, you couldn't enjoy a comfortable, interesting, exotic, even fun, exciting, and adventure-filled life. But you'd be living simply, because you'd have no option. The only life in these places is the simple life. The point is that you can control your cost of living, within parameters, almost anywhere in the world.

Ok, but what does it cost to live in Puerto Vallarta, Mexico?

Here are two scenarios, one based on renting with no car and the other based on owning a two bedroom condo with a car, neither one on the beach but within walking distance. As you can see, it is entirely possible to live on a social security income of $1200/month simply and comfortably. If you have more to spend or invest, then the sky is the limit.

MODEST FULLY-FURNISHED RENTAL (all costs USD/month)

Rent: $600 (one bedroom)
Transportation: $50 (occasional bus and taxi fares)
Electricity: $40 (with AC less without)
Gas: $8 (used for cooking)
Telephone: $30
Internet: $25
Cable TV: $30
Part-time household help: $60
Groceries: $200
Medical insurance: $30 (IMSS)
TOTAL: $1,073

OWNED TWO-BEDROOM CONDO (all costs USD/month)

Homeowners association: $250 +/- (if applicable)
Transportation: $200 (car, gas, insurance, plates, parking, some bus and taxi)
Electricity: $60 (with AC less without)
Gas: $10 (used for cooking)
Telephone: $30
Internet: $25
Cable TV: $30
Part-time household help: $100
Groceries: $200
Medical insurance: $30 (IMSS)
TOTAL: $685-$935

Parts excerpted from Living and Investing Overseas.

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Learn Vallarta is a new service in town dedicated to education and cultural integration. Owned and operated by two Americans and their staff who live in Vallarta fulltime, they deliver personal and helpful assistance in learning more about this charming tropical environment and its friendly people... especially recommended if you are thinking of moving here. For more information, call them toll-free at 1-888-856-3120 or visit their website at LearnVallarta.com.

Click HERE for more Learn Vallarta information.